Duplex in San Antonio

[Josh Meisel]

Investment Info:

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

Purchase price: $200,000
Cash invested: $30,000

I purchased the duplex through a wholesaler and extended the kitchen / dining room area in the downstairs unit. Now that the unit has been updated, I have two long term tenants.

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

I got this deal from a wholesaler and paid the price that the wholesaler was asking since it was already discounted.

How did you add value to the deal?

This property was built in 1920 and the wiring was ancient and fraught with issues. I replaced most of the wiring and panels to address the electrical issues. I also extended the kitchen / dining room in the bottom unit by about 200 square feet to provide a usable indoor space and replacing some of the covered outside patio.

Lessons learned? Challenges?

Initially, I rented the bottom unit to my contractor who did the kitchen extension / renovation. This seemed like a great idea since the contractor was paying rent while the unit was being renovated. However, eventually I had issues when the contractor had enemies that broke in and caused significant damage. I learned two lessons from this. First, I need to vet all tenants to the same standards. Second, I should not rent to a tenant that I also have a business contract with.

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

New Western is a great wholesaler in the San Antonio area. I have purchased two multi-family properties from them.