Never accept no as an answer.

[Keith Dobbins]

Investment Info:

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

Purchase price: $185,000
Cash invested: $15,000

My first Real Estate purchase is a duplex, that was purchased via FHA while still on a two-year parole after serving 19 years in prison.

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

Rent one side and live in the other.

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

I spent over a year contacting different real estate agents, brokers, and bank institutions inquiring about getting approved for FHA with little or no credit and a lack of work history and was denied many times. Finally, I found a broker who guaranteed me that he could get around those guidelines.

How did you finance this deal?

I worked as a quality inspector supervisor working 60 per week and saved up $2,000 in cash. I invested $3,000 with a friend, believing he was earning me huge gains, more than doubled what I invested. When my mortgage broker began to ask about my financial background to show proof of funds, my buddy claimed that the bank would not give him the funds he owed me...

So I ended up selling my Dodge Ram which was worth $9,000, according to KBB, for only $4,000 to complete the transactional funding.

How did you add value to the deal?

I upgraded the upstairs kitchen with new flooring and countertops, bathroom fixtures, and fresh paint. And just recently had to do some major renovations to the downstairs unit after my first tenant trashed the place, stole my washer, and dryer, and ruined the refrigerator. I'm also in the process of replacing the garage doors with two new garage doors.

What was the outcome?

I'm hoping to refinance and purchase my next duplex/investment property.

Lessons learned? Challenges?

I need to stick with month-to-month lease agreements until I find someone trustworthy enough for a longer lease agreement. It took over two months to have the first tenant evicted.

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

No, I wouldn't recommend my agent to anyone. But I will say that she went above and beyond her call of duty to help me, and I was proud to have her as my agent.