Duplex convert to Triplex/ Owner financing

[Tyler Wilcox]

Investment Info:

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

Purchase price: $170,000
Cash invested: $32,000

I bought this as a duplex that used to be a triplex. It was renting for $650 one unit and $600 the second. I increased the rent on the $600 to $850 and the other tenant moved. I closed off the connecting door to split the unit into two. I rented that unit for $850. I spent $12000 converting the middle unit back into the third unit and rented that for $850. I bought this as owner financing at $20,000 down 7% interest. My payment is $1000 with around $300 to tax and insurance. After maintenance, I should bring in $1200 a month cashflow.

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

Value add, Rent increase, owner financing

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

Saw it while showing homes

How did you finance this deal?

Owner financing

How did you add value to the deal?

Convert to triplex, increase rent

What was the outcome?

High cash flow high value add

Lessons learned? Challenges?

Contractor was slow, so I started my own team

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

Myself, Tyler Wilcox, Must Have Real Estate LLC