Orlando Buy and Hold

[William Dedelow]

Investment Info:

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

Purchase price: $57,000
Cash invested: $57,000

Purchased half of a duplex located next to a duplex we already own and across the street from a 6 unit building we own. Got a great price but it came with a catch, we had to lease it back to the current occupant at a discount. She is still living there today at $675/month. Market rent at the time was about $825 and current market rent is about $1125. It will require some work when she moves out. Our duplex next door was appraised at $208,000 earlier this year, so this half duplex is worth $104,000!

[William Dedelow]

Hi Tyler, thanks for your interest.  It is disappointing to be so far under market, but it will work out and shouldn't slow us down too much.  The guy who sold us the property owns and lives in the other half of the duplex and we rent to his mother in our half.  She was over 90 when we bought the place.  I hate being morbid, but I didn't think it would be a long term arrangement.  Anyway, we have a hand shake agreement to buy the other half when mom goes to a nursing home or passes and we'll get it for probably $30k under value.