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 duplex was my first property purchase ever. I cannot over state how important it is to just get started. This may not have been the home run that we hear about and read about in all of the investment books, but it is a great turn key that has taught me so much as I moved into more deals. The importance of getting your system in place for how you will structure all of your properties as you get them, in my opinion, outweighs the need for a first time home run. The mindset of changing your spending habits to investments rather than liabilities for the rest of your life is all that you really need to be successful in this.

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

Multi Family in general is what I liked about this deal. I was initially looking to BRRR a local duplex because there were a ton on the market at the time. With less time to find a good contractor who was free and manage the project in general I settled on getting started with a turn key investment.

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

The deal came through on a drip that I was getting from a local agent and I simply bid roughly 5% below asking and was able to negotiate a few concessions as well. Both units were already rented and has cash flowed since day 1.

How did you finance this deal?

Conventional 25% financing

How did you add value to the deal?

As a turn key without much to do in this realm I only made a few changes. I upped the rent a bit and added a few things to the house like some bushes and gutters.

What was the outcome?

So far the checks have been coming in on time and the tenants have given no issues or any signs of leaving after the rent was raised.

Lessons learned? Challenges?

It was the first piece of real estate I had ever purchased so just learning that whole process was great. Also I was able to learn how to get property management for the property and set up all of my payments automatically in a new account. Every little piece was actually quite easy, but to initially look at getting it all set up while purchasing a property seemed daunting at the time. I am happy that I chose to go in with a turn key first to get my systems in place for the next one.

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

Shelby Osborne Real Estate Agent
Alotta Properties Property Management