Small Side By Side Duplex As First REI

[Tim Maynard]

Investment Info:

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

Purchase price: $140,500
Cash invested: $21,500

2BR/1 Bath per side duplex with attached garages for each side.

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

I'd be underwriting about 12+ deals and this one was the first one that made sense. Although I do have to self manage, it does surpass my minimum criteria of $100/door, over 8% CoC return, and almost a 10% cap rate.

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

This was on the MLS, and we came in with a strong offer right off the bat.

How did you finance this deal?

We financed with our local bank for 85% LTV that is amortized over 25 years with a 7 year fixed term.