Purchased My First Duplex

[Jim Herbst]

I closed on my first duplex this week in Columbus, Ohio. This will be my 3rd investment property, but my first multi. I hope to acquire MFs exclusively moving forward. Here are the particulars:

Purchase Price: $69,900

Gross Monthly Rent: $1050

Monthly PITI (20% down at 5.5% 30 yr fixed): $590

Estimated COC: 28%

Estimated Cash Flow Per Door: $175

The GRM wasn't overly impressive. I've walked away from deals with better cash flow on paper, but what sold me was the existing tenants (the purchase was contingent upon the tenants renewing for 1 year from the closing date). One tenant has lived there for 34 YEARS (the building is 34 years old) and the other has lived there for 7 years and is active in the neighborhood watch program. These tenants take pride in their surroundings and community. I've noticed that while a deal may look good on paper, it's the quality of the tenants that will drive your profitability.