Two duplexes on one property in Bradenton

[Scott R.]

Investment Info:

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

We were blessed to find a property in Bradenton with two duplexes on the same lot in 2020.

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

We were looking to get into Multifamily.

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

We found the deal on a Bradenton business site. We were able to get the property for 15K less. We negotiated based on current rent rates.

How did you finance this deal?

We saved money over a period of two years from my W2 job for the down payment, but also had a HELOC. We had to put 20% down and we used part of our HELOC, just so we wouldn't leave ourselves without any cash for repairs. We paid the HELOC off within 6 months. We were able to finance the deal through APR Mortgage.

How did you add value to the deal?

We renovated the front two units as tenants vacated and ended up listing them both on Airbnb. We replaced the roofs and 3 out of 4 AC units. We've increased rents on the long term tenants every year.

What was the outcome?

The property is positioned to have excellent cash flow in 2024 now that most of the big capital expenditures have been completed.

Lessons learned? Challenges?

It takes way more cash than we thought to get a property going. Save lots and lots of cash for an emergency and repairs.

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

Ryan Beck at APR Mortgage - aprcommercialfunding.com

The team at Barnes Walker law firm in Bradenton.

Bruce Eason at Palmetto Law, for evictions.