First Duplex a success

[Scott Wright]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $220,000
Cash invested: $55,000

2,160 SF Duplex, each side 2/1.5

What made you interested in investing in this type of deal?

Duplex available at slightly over $100/SF, on a street with many similar duplexes.

How did you find this deal and how did you negotiate it?

Found on realtor.com; asking price was $260,000, offered $210,00; bought for $220,000.

How did you finance this deal?

25% down payment; used cash left over from our first deal.

How did you add value to the deal?

No improvements as yet, although some painting and new flooring will be required when the existing tenants move out (cat stains on carpet).

What was the outcome?

Both existing tenants decided to stay even though we are raising rents when their existing leases renew.

Lessons learned? Challenges?

Buying a property with tenants has been great for cashflow versus ur first deal that required renovation and finding the right tenant for a unique house.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with the same great realtor, banker, and property manager.