Small Duplex Purchase

[Jason Foy]

Investment Info:

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

Purchase price: $160,000
Cash invested: $40,000

Purchased Small Duplex with extra lot zoned R-5 Multifamily
Rented it as a single family for now, since not all the requirements are in place for a multifamily
Planning to rehab this summer to increase rents several key things need to be done to ensure it can be a licensed duplex

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

At the time was very busy with work and needed to deploy some capital, so this building was mostly turn-key. All it needed prior to renting was paint, flooring, new toilets, faucets, and appliances.

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

Worked with our local realtor, and found it sitting on the MLS with really bad pictures and a long time on market during a very hot in demand cycle

How did you finance this deal?

Commercial financing through local credit union with 20% down

How did you add value to the deal?

Increasing rents, converting it to a legal duplex, and general small remodeling. The long-term play is to develop the land out eventually since it is a double lot zoned R-5 Multifamily and can hold up a 5-story multifamily building.

Lessons learned? Challenges?

at first glance, we thought it was a duplex since it has two units and separate entrances. However, we did do enough due diligence and found out through code requirements several things needed to be completed before it can be licensed as a duplex with the city.

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

yes worked with a local agent who I would highly recommend if anyone needs an agent.