Fall 2022 MLS listing Duplex purchase

[MIlton Monzon]

Investment Info:

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

Purchase price: $108,000
Cash invested: $23,000

Originally listed at 193k. I waited until it dropped. It eventually came down to 180k. So I reached out offering 135k while showing that I can close in less than 25 days. Used findings from the inspection to negotiate and we were a week from closing. Agreed on 108k. Appraisal report showed "as is" value to be 155k! So off the bat 47k of equity with two tenants who were paying on time 875 and 1500 a month. Leases expire in July and market rents will be 1350 and 1700 bringing in 500$ more of cashflow totaling 1000$ a month with a rate of 8%. Out of the 6 homes with listings longer than 90 days two negotiated with me and this one made it happen. Worst thing that could have happened is the seller saying NO.

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

Wanted to scale and finish the year strong after pulling equity from a recent BRRRR.

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

MLS while looking for listings longer than 30 days. Offered a quick close and only an inspection contingency.

How did you finance this deal?

RCN capital HML.

How did you add value to the deal?

Lowering asking price to a price that would me my 12% ROI.

What was the outcome?

12% ROI and existing equity!

Lessons learned? Challenges?

Always take advantage of the inspection window to conduct all needed inspection and use them for negotiation.

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

Brenda Engel my go to in SE CT.