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Updated over 1 year ago,
First Investment Property
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $105,000
Cash invested: $15,750
Duplex - 2 Bedroom 1 Bath and 2 Bedroom 1.5 Bath. Both sides have unfinished basement with washer/dryer hookup.
What made you interested in investing in this type of deal?
I wanted an affordable property with good bones that I could fix up and make new again.
How did you find this deal and how did you negotiate it?
I found the deal on the MLS. It required a lot of work and was priced too high. I knew what purchase price I needed to make the numbers work. Once the price dropped, I made an offer and it was accepted.
How did you finance this deal?
I used conventional financing with 15% down.
How did you add value to the deal?
I totally gutted the property and rebuilt it.
What was the outcome?
The outcome was a beautiful modern duplex that was easily rented.
Lessons learned? Challenges?
I learned that you have to really know your contractors and be able to trust them. You should also make a point to show up every day and ask questions to make sure things are being done the way you intended and that the contractors are not cutting corners.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I used Caliber home loans for this deal. I worked with Mike Wickham who was awesome throughout the entire process. My realtor was Patty Lumpkin (deceased) and Cody Jackson with Carpenter Realtors. I loved working with Patty because she was attentive to my needs and was able to jump on this deal and write an offer at 11:00pm when I saw the price had dropped. Cody Jackson assisted Patty with getting this deal to closing. They both did a great job!