Buy and Hold Duplex Near Downtown Bryan

[Gregory Schwartz]

Investment Info:

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

Purchase price: $270,000
Cash invested: $100,000

The property itself is a 1950s duplex that underwent significant renovations in 2017.

Purchase Price: $270,000 (jointly with a partner)
Initial Rents: $1050 and $1250
Current Rents: $1400 and pre-leasing for $1500 (making it a 1% rule deal!)
Estimated Market Value: $290,000 to $330,000

The plan? Hold it for forever, refinance as required to tap into equity and continue to grow our little portfolio.

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

My partner and I invest primarily in small multifamily.

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

I worked for the owner as a property manager for 3 years. As a result, I received early notice he was looking to sell. I made an offer on the spot!

How did you finance this deal?

Commercial bank financing 30% down, 20 year amortization

How did you add value to the deal?

We purchased it below market value and increased the rents from $1000-1200 up to $1400-1500

What was the outcome?

Its a great rental that we will hold onto for years to come!

Lessons learned? Challenges?

Relationships are everything in this game. Also dont be afraid to push rents. In this case, it was better than MTR'ing the property