Duplex Deal: Owner Finance to Long-Term Hold

[Evan Glasco]

Investment Info:

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

Purchase price: $240,000
Cash invested: $60,000

I purchased this duplex in distressed condition using owner financing for $240K and secured a $60K hard money loan for renovations. We fully renovated both units, improving the property’s value and rental potential. Once the work was complete, I refinanced to pay off the hard money loan and held the property as a long-term asset.

This duplex also marked the start of my short-term rental journey—we ran our first Airbnb from one of the apartments before scaling to bigger projects. Eventually, we transitioned the unit to a long-term rental, ensuring consistent cash flow while retaining the property in our portfolio.

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

I had been discussing this property with the owner for a while and saw its potential—distressed but with strong fundamentals and built-in equity.

The deal was a great opportunity to apply creative financing, secure a property with minimal upfront capital, and build long-term cash flow. It also gave me the chance to experiment with short-term rentals before transitioning to a long-term hold, reinforcing my strategy for growing a real estate portfolio.

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

I initially offered $200K in cash, but the seller countered at $240K. Given that the property was worth $390K in its current condition, I saw an opportunity to make the numbers work while keeping my upfront costs low.

Instead of increasing my cash offer, I negotiated a $25K down payment with the seller carrying the balance for two years through owner financing. To cover renovations, I secured a $60K hard money loan, allowing me to improve the property without a significant initial investment.

How did you finance this deal?

Owner carry financing, hard money for renovations, then refinanced into a long-term mortgage.

How did you add value to the deal?

market rents/cost to aquire

What was the outcome?

Less than $300K in a mortgage, generating $4,000/month in rent.

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

No I drew up my own contracts and filed the paperwork myself