How purchasing my second house hack got me another duplex deal!

[Alan Asriants]

Investment Info:

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

Purchase price: $359,900
Cash invested: $110,000

While purchasing my duplex house hack, I was contacted by an agent that was inquiring me about what price I had my current duplex under contract for. They had a similar duplex across the street hitting the market and wanted to get an idea what was a good listing price. The agent gave me a call back a few days later, allowed access to the property and gave a very fair listing price based on what I was purchasing mine. I made her an offer at her list price without any contingencies to lock it up!

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

I wasn't aware of this deal until the listing agent reached out to me to inquire about my contract price on my current house hack deal. After they stated their desired price, I believed it was fair and gave them the price to avoid them putting it up on the market. It was nice that they were still offering a commission on a private deal.

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

The deal found me!

How did you finance this deal?

Using a no doc DSCR Loan - at the time the rate were wonderful - 4.875% no points!

How did you add value to the deal?

Did a small renovation to upstairs unit and garage. Bumped rents to first floor from 800 - 1200/m

What was the outcome?

The second floor was vacant before closing and need a light rehab, putting in 18k. The tenant on the first floor stayed and we increased their rent from $800/M to $1200/M. This is still below market but we thought it was fair since the tenant has been very good to us. After our renovation and investment to purchase the property we are cash flowing $1263/M which gives us a 13.8% CoC

Lessons learned? Challenges?

Sometimes while pursuing opportunities other opportunities find themselves to you. Learn to take advantage, don't negotiate too much to risk losing the deal - especially if the deal is already good.

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

Real Estate Agent: Myself
Lender: Dmitry Shamis (AMRES)
Title: Alpert Abstract LLC