Out of State Duplex NC

[Timothy Allen Kidd]

Investment Info:

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

Purchase price: $105,000
Cash invested: $31,500

This one was a Duplex deal that me and my brother partnered on in Fayetville NC. It was a really good deal with renters already in place. We can increase rent to match the area, but it is already cash flowing. Minimal issues to fix and great price for a multi.

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

Multi family is what I plan to build my business around. It makes the most since and is easier to scale once you get into it. much less work for multiple doors. Podcast and books I read really confirmed that this was the right direction to move toward

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

Me and my brother found this deal on the MLS in Fayetteville. The owners had dealt with another buyer that had things fall through. We negotiated the deal by having an appraisal done and then utilizing the value they came back with to get the cost down. went from 115000 to 105000. Also got the inspection done and had the owner pay us for repairs that we would need to make on the units.

How did you finance this deal?

We financed this deal through a traditional financing. 30% DP on an investment loan.

What was the outcome?

We closed on the deal and were able to keep the renters in the units and get the price we wanted for it.

Lessons learned? Challenges?

Getting the closing cost right before going to closing. There was a miscalculation that was caught a closing and cost us an additional 1500 out of pocket. We had it, but it was not a fun pill to swallow. Multiple changes to the price and adding myself to the loan after my brother did not have enough in his accounts was challenging and ate up allot of unnecessary time.

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

Yes we worked with a realtor. She was great. Would not work with the broker we did again. he was hectic and seemed overwhelmed with his workload. Did not make us a priority and had mistakes in his work that cost us at closing.