Off Market Duplex

[Pete Harper]

Investment Info:

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

Purchase price: $85,761
Cash invested: $22,000

1970's Duplex in small rural town in Central Texas. I found the deal by sending out "Yellow Letters" to all the multifamily owners in town. I was contacted by the guardian for a gentleman that just moved into assisted living. Over six months waiting for the court to approve the sale. Our plan is to hold this as a long term rental. Update: The right side renovations are complete. Unit is now rented at $950/ month. The left side decided to stay as-is at $700. $1650 total Solid 2% deal.

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

Long term buy and hold for cash flow. Solid 2% deal

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

Negotiated deal with owners guardian. Took 6 months to close the deal with court approvals. Used inspection report to negotiate half cost of new roof prior to closing.

How did you finance this deal?

Conventional 30yr financing

How did you add value to the deal?

Renovated the right side increasing rent from $500 to $950.

What was the outcome?

Long term hold with great cash flow.

Lessons learned? Challenges?

Patience.

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

Represented myself on negotiations. This was an off-market deal