First Purchase Turn Key Duplex

[Daniel Kidd]

Investment Info:

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

Purchase price: $105,000
Cash invested: $27,500

This was my first purchase in starting out in real estate investing. It was just a nice turn key property that I liked and I had the money for it. This was one of four duplexes I purchased that day. I like the pricing for the duplexes around this area and especially the ones that need some work because they are priced generally where I would need them to be for them to be an effective BRRR. Super happy so far with this place and with myself for getting in there and making it happen.

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

Originally I was looking for somewhere to put my VA loan to allow me to do a house hack and live in one of these for free, but around the time that this came up a quad also came up so I bid on both and went with conventional for this one and VA for the quad. I won the bid for the quad but still working through that one at the moment. The VA appraiser isn't giving me much love and isn't requiring a lot of things to be fixed that I feel should be before it is worth the value they are claiming.

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

I linked in with a local investor and agent. She has been super helpful and I will actually be transferring out of the military to work with her as an agent. Anyway she just put me on a drip from the MLS for local multi family and that is how I found it.

How did you finance this deal?

Conventional financing through MC Mortgage group

How did you add value to the deal?

The rent was a little low, so I have upped that a bit and will be phasing out the lawn care. Normally for something multi family I would still provide the lawn care but maybe only once I get up to a tri or bigger.

Lessons learned? Challenges?

I liked this as a first deal but moving forward I will definitely be looking for ways to better leverage my money by BRRRing duplexes in the area. Turn key was nice for the simplicity and the knowledge it gave me of the whole process but I doubt I will go in on a turn key %100 conventional loan by myself again.

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

Yes, I would highly recommend working with Shelby Osborne, She is my agent and Patrick Stoy with MC Mortgage. I also use a Alotta Properties as my property manager here in the Fayetteville area