An Antique Duplex to Start

[Jessica Starr]

Investment Info:

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

Purchase price: $352,000
Cash invested: $25,000

We bought our first duplex! It has a finished attic that we will soon convert into a third unit for use as a short-term rental and guest area. We purchased out of state (moving to the area for work) and move this weekend. The home is a 1909 craftsman in excellent condition and room to put a fourth unit in the basement if we want to. I know this isn't the greatest real estate deal in history, but it fit our needs and that was what we focused on.

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

We wanted a home that would cost less than renting and have someone else contributing to the costs. For love-of-life reasons, I wanted an antique house (preferably haunted). We also identified an up-and-coming neighborhood in a mid-sized city that is currently experiencing a revival.

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

We used a real estate agent and secured the deal through a well-worded cover letter to our offer. Turns out dozens of offers came in and ours was not the highest. They chose us because I spotted their vegetable garden and let them know, as a gardener myself, that I would be comfortable having them come back to harvest their crops if they wanted to.

How did you finance this deal?

FHA loan and our savings.

How did you add value to the deal?

Telling the former homeowners that we were so appreciative of their attention to the original details of the home (fireplace, stained glass, molding, etc) and that we would allow them to harvest from their plants after they left. Oh, and they were teachers before retiring, and we worked into our cover letter that we were also teachers.

Lessons learned? Challenges?

We move in in a few days, so I'm sure I'll start spotting my mistakes right away.

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

Nielsen Realty and The Mortgage Network-- DM me and I'll give you some names!