First REI deal was is a Duplex buy and hold I couldn't refuse.

[Daniel Crenshaw]

Investment Info:

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

Purchase price: $79,000

Cash invested: $24044.02

I am always up for a challenge. My first real estate investment turned out to be a Multi-family duplex in which a lot of newbies would have been petrified of, but I knew after running my numbers that this was a deal I could not refuse.
This duplex was actually listed as a rehabbed duplex that was sitting on the market for over 90 days.
It was essentially rent ready other than a few minor cosmetic upgrades.

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

The numbers. After analyzing this deal I stood to make at least $450/mo in Cash Flow.

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

I found it myself on the MLS (Zillow). I offered the seller 20% below asking price and they counter offered 12% below asking price and I accepted it because it was $1000 below my maximum offer budget amount.
After the inspection, the inspector found several items that needed immediate attention like drain pipe in crawl space was disconnected from house, new AC units were needed and a few more items that the seller actually agreed to repairing before closing.

How did you finance this deal?

Conventional loan through Local Credit Union bank.

How did you add value to the deal?

Mostly cosmetic enhancements were made on the property.
New bathroom vinyl flooring
New Toilet
New Ceiling fan
Painted old kitchen cabinets bright white with new Hardware handles.
Installed Refrigerator
Added Blinds
Replaced all wall outlet covers
Replaced upstairs unit Sink faucet with new modern hook faucet

What was the outcome?

Two days after closing, my Real Estate agent/Property Manager was able to find a tenant and signed contract with deposit in hand for one of the units.

Lessons learned? Challenges?

When dealing with the banks they want to ensure that you have plenty of reserves sitting in the some sort of money market, whether it be 401k, savings/checking, stocks, etc. They want to ensure that if something goes wrong early in the deal that you have enough to cover expenses.
Considering the deal was completed in December, the lender required the full amount of a years worth of home insurance to be paid. Good thing I shopped around for the best deal on home insurance.

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

I certainly recommend working with Brenda Bradley. She is a woman of many hats and yet proficient and reliable.