Hands off duplex in southern MN

[Sebastian Lee]

Investment Info:

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

Purchase price: $76,000
Cash invested: $2,100

type: duplex
Purchase: 76,000
Appraisal:100,000

The owner did not want to list the property to save on realtor fee’s, so a friend of mine who is friends with this guy brought me the deal. I called my local appraiser and got an opinion of what it should be worth, he told me 95,000. So I called my banker and told him the details, he said he would fund it for 0 down if my purchase price was less then 80% of the value. I offered 74,000, he countered 78,00, and settled on 76,000

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

I’ve been actively looking for small multi families

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

A friend brought it to me, I told the seller what I could pay and we met just over my original offer

How did you finance this deal?

A wonderful SMALL TOWN bank that I’ve built a relationship with

How did you add value to the deal?

By purchasing at a low price!

What was the outcome?

It’s been fantastic so far, the tenants were screened thoroughly so we haven’t had any problems, they even signed up for online payments the first week.

Lessons learned? Challenges?

Interesting tenants isn’t always a nightmare if the previous manager is a professional

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

Jason Sarazine from Coldwell Banker in Owatonna.