Duplex - lots of sweat equity!

[Emma Whear]

Investment Info:

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

Purchase price: $417,500
Cash invested: $37,575

Technically a single family by zoning, though set-up to be a duplex, with 3 beds and 2 baths per unit.

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

We weren't super happy with anything we were seeing on the market, so my husband and I had just started writing letters and looking off-market... until we saw this property.It'd been sitting on the market for months. We currently own two other duplexes and we've house-hacked all of them. Each one has been a step up as far as space, location, and lay-out. This one is a big improvement because we'll gain a lot of space, a more "house-like" layout, and a garage, and a third bedroom!

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

A real-estate friend and then our agent, Jordan Clemans.
Because of where interest rates are at—and how slow everything is moving—we basically made a "take it or leave it" deal.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

We came in low with our offer, but were willing to skip the inspection (which had already been completed before we offered) and stipulated that we would close in 20 days, which was super valuable to the seller.

What was the outcome?

We offered 407 and asked for closing costs. The sellers countered at 450 and closing costs. We gave a final offer of 417,500 and closing costs, and they accepted.Currently in the middle of new floors, a new bathroom, new kitchen lay-out, new trim—after completing tons of demo.

Lessons learned? Challenges?

Every time, there is new little things, especially in the financing process.
Insurance was way more expensive this time—which I've heard is a nation-wide phenomenon—and it's the first time since the NAR settlement that we've purchased, so we had to cover part of our agent's compensation.

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

Yep!
Josiah Rosendahl at Fulcrum Home Loans
Jordan Clemans at Story Real Estate