My first deal: FHA duplex appraised 50k over!

[Melissa Dorman]

Just bought my first duplex that I found off market using $300 of direct mail. It's located in an up and coming part of Portland Oregon called Foster Powell. The owner was an out of state landlord so I was able to negotiate the price to $320,000. Icing on the cake was it appraised for $370,000! The seller even agreed to pay $4,200 to help move the tenant out so I could move in for my FHA loan requirements. Market rents will be $1,200-$1,300 each unit starting in 2018. Already sending out my next $800 of direct mail!

[Melissa Dorman]

Max Brunke and Charles Street I got about twenty calls from 500 mailers and of those 5 sellers really trying to sell at market price that I passed off to my realtor friend for a referral fee if they execute on it and this deal and one I'm still negotiating with another seller to do a lot reassignment as a joint venture deal with a fellow investor who would build on the lot and give me equity in the duplex or a wholesalers fee for finding it. I got my list for free from a title company search with a simple criteria of 2-4 units in 3 specific zip codes. $300 in mailers well spent, I would say.