First duplex in San Antonio

[Nicholas Van Rensburg]

What's up bigger pockets, I wanted to post about my first duplex. After a long time of saving and reading and reading and listening to podcasts I finally saved enough money, got a good realtor and started looking for homes. I used a slightly different way of calculating a good deal from a bad deal but essentially it tells the same story. I would base everything on ROI. If a property would require 30k down and produce 800 cash flow after Taxes, mortgage and insurance. I would divide 30k by 800 to give me months of ROI. I know I should calculate for expenses but this model just seemed so much simpler for me. Anyway back to the deal - we looked for several months and kept finding deals in the 41-45 month ROI, anything under 40 months was a bit ghetto for us and/or needed major up keep and repairs. But after 2 months of looking we finally found a good deal. The duplex was listed for 100k and had a 37.5 month ROI - it is in a decent neighborhood and the corner of a good neighborhood. We made an offer for 105,000 knowing that there might be some competition - come to find out there were multiple offers and we matched the highest but they said our offer was more attractive than the other buyers. Inspection went well, only big thing is the house needed a new roof so we asked for 6k off to compensate for the roof and they excepted. So we got into the house for 99k had to put 25k down plus closing costs... total invested was just over 30k. One side is currently rented and tenant has been in there for 20 years... her rent is $650 and covers he mortgage but true rent values should be $800-$850 but she is under SAHA so I am not sure how to increase rents yet. The other side was recently remodeled and ready to rent out we just need to get working on that now that we have closed. Overall it has been a great experience! We just sold our first "live in" flip and will walk about after transaction costs with about 45k. Deal will be closing within 14 days and then we will be ready for duplex #2!!

[Rick Pozos]

Thats great that you got started. The early ones are the hardest.

Congrats!! If you need any help, please let me know. I have dealt with SAHA before. They can be kinda difficult, especially with inspections.