Our First Duplex -- A Success Story in Bellingham, WA

[Jacson Bevens]

Investment Info:

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

Purchase price: $485,000
Cash invested: $125,000

My wife and I bought a duplex in Bellingham, WA with 2 beds and 2 baths on each side. Each unit has a carport and a fenced back yard. One unit was updated (LVP floors, granite counters, stainless steel appliances, fresh paint) and now serves as a furnished rental. We see $3,300/mo from the furnished side and $1800/mo from the other for a total of $5,100/mo. We pay utilities on the furnished side, tenants pay utilities on the other.

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

My wife and I were eager to get into real estate investing. We saved up a down payment and waited for the right opportunity. When this humble duplex hit the market, it immediately caught our eye. We moved quickly with financing and presented an offer the following day.

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

It was listed on the MLS, and we competed against one other offer.

How did you finance this deal?

Conventional financing through a bank.

How did you add value to the deal?

We inherited tenants on each side that were paying below market value for the units. We introduced moderate rent increases with 120 days' notice. Both tenants eventually moved out at the end of their leases, allowing us to re-rent the units at modernized prices and update one of the units to list as a furnished rental.

What was the outcome?

We now have a property that has seen $250k-$300k appreciation in just over three years, while increasing the GSI from $27,600 to $61,200.

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

As licensed Realtors, we were able to broker the deal ourselves. I've been blessed with the opportunity to help many real estate investors purchase and sell their own rentals so I was very familiar with the process.