My first (and only to date) duplex

[Alexander M. Mahan]

Investment Info:

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

Purchase price: $75,000
Cash invested: $75,000

This is a duplex with 2 bedroom/1 bathroom on one side, and a 1 bedroom/1 bath on the other. I purchased the property in 2017, I have completely renovated the one bedroom side, which is currently a furnished long-term rental. I have also made cosmetic updates to the 2 bedroom side, including a full bathroom renovation, this is also a long-term lease.

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

Having two income producing doors in an area with a lot of upside.

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

I actually found the deal on Craigslist back when that was still possible. I met the owners during the walkthrough, and ended up hitting off with them, and they wanted me to win the property in a multi-offer situation.

How did you finance this deal?

Cash - Then refinanced to renovate in 2020.

What was the outcome?

Currently the property is fully rented for $2,550 per month, $1,200 per month on the 2 bedroom side, and $1,350 on the one bedroom. Purchase price was $75,000, made $75,000 in renovations/repairs over the years. ARV around $225,000.

Lessons learned? Challenges?

Buying an old property with lots of neglected maintenance comes with a unique set of issues. While I have made the property substantially better, and in turn am collecting good rent, I am limited in what I can do going forward with respect to ROI, and there are always expenses that can be made/issues that come up. This is an the city and the area around it is developing, so I will likely tear it down in a few years to build something else.

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

I am the agent.