Deal #3: 2 Duplexes in St. Louis

[Gunnar Teltow]

Hello everyone, and thanks again for all the great comments and suggestions on my last post regarding the low priced rentals in North County, St. Louis (First two deals under the belt!).

Last Friday, we closed on Deal #3:

• 2 duplexes/4 units right next to each other
• all units are 2/1s with basements and 2 parking spots in front per unit (8 total)
• each unit is rented for $687, some market, some Section 8
• $2,748/$32,976 gross monthly/annual revenue
• $100,000 total purchase price for both buildings ($25k/unit)

The insurance is $766/year for both. I wish I had actual numbers on the other expenses but the way these deals seem come in and need to be committed to and closed leaves little time for details. I had to use the dreaded 50% rule. Good margin for error though.

Also, this one didn't come with financing but I think that could be arranged after the fact in a few months or a year.

Within just 5 months, we're now up to 30 units (26 SFRs and 2 duplexes) in North St. Louis County, and still actively looking for more. It's almost an addiction once you get started! "Hmmm let's just buy this one more and then we'll definitely stop to digest everything" ;)

This may turn into a horrible disaster or the best investment my partners and I ever made, we'll see. I hope it's the latter. Thank you for reading my posts and for all the great advice and support!