My First Duplex in Jensen Beach, FL

[Brian Sawyer]

Investment Info:

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

Purchase price: $179,000
Cash invested: $15,300

I bought my first property at 3.5% FHA with 2 inherited tenants who were planning on moving and were renting at $800 each side. At the end of their term, I fixed up one side and got it rented for $1300 after a 2-month long turnaround. I moved into the other side where I could do the repairs myself and save money. I AirBNB'd extra bedroom on the side I was living in for extra rental income. My rental income was enough to pay for all of my expenses leaving all of my job income to go towards saving

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

I knew that I wanted to do a live-in duplex deal that I could rehab, gaining equity and rental income. This deal appealed to me because it would be a great introduction to buying, managing, rehabing, and networking all with the benefit of a hands-on approach.

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

I found this deal by signing up with a few realtors MLS listings being directly emailed to me. I would check my email every day until I found the one that worked for me. I negotiated $20,000 less than the seller wanted due to a missing roof permit and repairs that needed to be made, also with a few tricks from a negotiating bigger pockets podcast.

How did you finance this deal?

I financed this deal through a 3.5% FHA deal with a mortgage broker who got me an interest rate of 3.625.

How did you add value to the deal?

I added value to the deal through rehabbing both sides and managing the rental myself with a rental income increase of $500/unit.

What was the outcome?

With a mortgage of $1365/mo, Rental Income at $1300/mo, and Airbnb at an average $700/mo, I net $635/mo.

Lessons learned? Challenges?

Lessons Learned: Never pay a contractor/handyman until the job is completely finished, never sublease (subs don't care about the property/damages), expect more repairs than originally intended on the first deal, people need things spelled out to them, don't get emotional when talking with tenants and never let on that it is your first time (they will try to take advantage)

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

I worked with a real estate agent named Allison Cunningham who was on top of everything that I asked of her! She was very motivated and worked hard to get the things that I needed from her and made the whole process as smooth as could be!

https://www.coldwellbankerhomes.com/fl/port-saint-lucie/agent/alison-cunningham/aid_180582/