Updated over 7 years ago on . Most recent reply
Duplex - First Investment Ever!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Anderson.
Purchase price: $59,000
Cash invested: $14,750
Duplex - each side has 1 bedroom; 1 bath. Unit A, fully renovated. Unit B, tenant at purchase but needs extensive work.
What made you interested in investing in this type of deal?
Purchase price was reasonable considering the income potential on collecting rent on two units as opposed to one house.
How did you find this deal and how did you negotiate it?
As part of Upstate CREIA, a local investment group, we receive regular emails with property leads.
How did you finance this deal?
I obtained a mortgage
Lessons learned? Challenges?
#1: I didn't realize some banks have minimum loan amounts. Under the advice of the first bank I offer $5K more than asking so, with my downpayment of 20% I would meet "loan requirements." It was still below their minimum amount so the bank suggested I offer more. I had to obtain a loan with another bank. I went into the deal paying more than I wanted because I didn't know about minimum loan requirements.
#2: The process for finding the qualified tenants is difficult.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I own my real estate company.
Lender: PrimeLending
Closing Attorney: The McCord Law Firm