Owner-occupied duplex #2 - turned rental.

[Julee Felsman]

Investment Info:

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

Purchase price: $276,560
Cash invested: $27,600

My third home... another duplex. A conversion up/down duplex. HUGE flats (over 1500 square feet each) in the heart of Hawthorne. Such a great walking neighborhood. I loved living here and our renters stay for years on end too.

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

After living in my first duplex for a few years, I was ready to move on to another plex.

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

My realtor friend, heard about an upcoming listing from a friend. She grabbed me by the ear to check it out over lunch and we wrote that day.

How did you finance this deal?

Conventional loan with 10% down.

How did you add value to the deal?

There were a bajillion unfinished projects in both units. We worked on the property day and night for the year and a half we lived there, tying up all of the loose ends and getting the place ready to rent. We made a lot of cosmetic upgrades to both units and landscaped.

What was the outcome?

Still a great, easy-to-rent, cash-flowing plex. We've refinanced to a 15 year loan.