First ever purchase - 2 unit duplex

[Ryan Frank]

Investment Info:

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

Purchase price: $505,000
Cash invested: $120,000

We inherited renters on one side while we live in and renovate the other side. We will then do the same to the other side once we are done with this side and hope to be ready for our next investment by the time both units are remodeled and other improvements to the property are finalized. I am self performing all of the work on the property.

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

We were originally moving from the Bay Area in hopes of finding our dream property and lifestyle on a small hobby farm in Central Oregon. Unfortunately we realized that we were not quite ready financially to take on the work required on a 10+ acre parcel - nor could we find the ideal property that checked all of the boxes in our budget. We then decided to shift our focus to invest in a multi family property with the hopes of saving towards our future goal.

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

I found the deal myself on Redfin after identifying a list of five properties we were interested in "on paper". After arranging to see each property in person, the only one we were interested in putting an offer in was the one we ended up with. We found a very talented realtor to represent us - Colleen M Peterson. She had a lot of experience with multi family properties and was an investor herself. She helped us negotiate an offer that was almost $20k under asking.

How did you add value to the deal?

So far we have: Removed several unsightly and dangerous trees on the property. Installed new LVP flooring throughout our unit. Built a new fence to divide the yard of both units.

We plan to remodel both bathrooms and the kitchen next. Followed by landscaping and repeating the process on the other side.

What was the outcome?

To be determined!

Lessons learned? Challenges?

Time will tell!

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

Colleen M Peterson

https://www.realtor.com/realestateagents/61f0ed615608fa60516604c6