My First Deal- C Class Duplex

[Alex Eernisse]

Investment Info:

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

Purchase price: $212,000
Cash invested: $26,000

House Hack Duplex. 3 bedroom 1 bath/ 1 bedroom 1 bath

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

I wanted to start building assets and take control of life. The cashflow made the deal work but all the benefits of Real Estate Control got me excited: cash flow, tax benefits, leverage, forced appreciation, and overall history of Real Estate Success!

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

MLS deal that I used a Realtor to help me negotiate it. The property was not taken care of so we negotiated them fixing several things and adjusting our leverage.

How did you finance this deal?

The purchase was with a 5% Conventional owner occupant loan. I financed about $10000 worth of renovations to the property.

How did you add value to the deal?

Ripped out the carpets and put in new laminate in both units. Upgraded appliances that didn’t work. Bathroom gutted and basic remodeled in one unit. Resigned tenants while raising rents.

What was the outcome?

Increased rents but $250 in one unit and will increase the other when I move into my next deal.

Lessons learned? Challenges?

Sweat Equity is tough if you do it yourself with a full time job. However it’s going to payoff huge. You’re never finished negotiating until the deals closed. You may need to look at 20 deals to get 1.

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

Kari Lundin-Realtor (Duplex Chick)
Conor Hesch-Mortgage Broker
Jim Schaefer-Mortgage Broker