Wholesale Duplex I Bought and Held

[Mark Mitchell]

Investment Info:

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

Purchase price: $305,000
Cash invested: $70,000

I bought this property then updated bathrooms, paint, hung new doors, new appliances. One side is a 2/1 and had an old tenant way below market rent. The other side is a 3/2 and vacant. When I raised the rent they moved out. Now I have two new tenants at market rent.

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

The cash on cash return peaked my interest. I was in a good neighborhood at the right price!

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

Another agent I work with buyer backed out. I jumped in and got his $10,000 EMD!!

How did you finance this deal?

Hard Money Loan then cash out refinance with interest only payments. Once rates drop I'll refi again.

How did you add value to the deal?

Got new tenants at market rent. I updated both units.

What was the outcome?

I now cash flow $1,500 per month. Once rates drop I'll cash flow approx. $1,800.

Lessons learned? Challenges?

I spent a bit more on the remodel than was expected. Now I know to add $5,000 to my repair/ remodel estimate for unseen problems that arise.

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

Yes my lender Melanie McLister (Huli Financial) was amazing!