2Bed 2Bath OKC Duplex

[Shaun Lloyd]

Investment Info:

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

Purchase price: $280,000
Cash invested: $70,000

PROPERTY: 1-Story Brick Duplex, built in the 1970s that clearly needed (and still needs) some work inside and outside. 2bed/2bath/2garage. I bought this place sight-unseen through a "normal" realtor, One side had solid tenant (20 years), while the other was kind of upgraded, but the owner gave up on the process.

INTENTION: Buy @ $280,000, rent both sides at or above $1,000 after 1 year.

THE MARKET: It was still a Seller's market in OKC, but not extreme like FL, CA, TX, etc...

FINANCING ACQUIRED:
- HELOC $95,000 variable interest used for down-payment paid by my LLC.
- 30-yr Interest-Only (for 5 yrs) loan through Park Place Finance LLC (found in Bigger Pockets network) who sold the loan in 3-4 months on the secondary market to another loan company (that's how these companies make money). This was discussed and expected through our communication. (AKA no surprise there) Everything was very clear and I was very thankful for them finding a loan that worked for both sides!

INSURANCE: Through USAA. (military veteran :) )

TITLE COMPANY: Didn't really have their "things co-located." I had to do a lot of back up work to get all the information I wanted from the purchase. This involved asking questions about xyz step or "what about this document in the closing packet?" They were not 100%. I wasn't really happy about asking where they want their money wired... Give me a break... That should be page #1.

THE DEAL I WORKED: I offered full price $280,000. I asked my realtor to get an estimate for completely replacing the roof. She sent the written quote and THEY ACCEPTED, then... offered to pay my closing costs, which lowered the finance amount! Yes! The duplex was only on the market for about a week. So I was shocked.

After a few more months of prep work, the unoccupied side was ready and nearly immediately had a tenant-family added. Some appliances were malfunctioning and some plumbing needed work, but since then things have stabilized and now the rent checks are coming in full with minimal expenses.

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

I really wanted a duplex in 2022.

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

Zillow/Trulia. Negotiated through a buyer's agent/realtor.

How did you finance this deal?

See description.

How did you add value to the deal?

No value yet.

Lessons learned? Challenges?

Always ask for what you want. You might just get it!
Early maintenance repairs were painful, but now doing well.