Second Buy & Hold Deal ( Small multi-family duplex )

[Miguel Rivera]

Investment Info:

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

Purchase price: $190,000
Cash invested: $25,682

Two unit duplex in a really good area surrounded by well maintained single family properties to give it that good neighborhood vibe. Second buy & hold deal allowing me to implement more effective analyzing learned from several sources such as Bigger Pockets.

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

Two units, more cash flow and the experience in multi family as well as scaling factor for portfolio.

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

MLS. I saw the property twice while it was on the market during mid winter while not many buyers were looking. Listing agent asked if I wanted to submit offer. Submitted offer $20K less than asking price and after negotiating, we were able to meet halfway with $10K under asking price.

How did you finance this deal?

Traditional conventional loan. 15% DP

How did you add value to the deal?

Just installed a wooden fence in the backyard to split the yard for each unit.

What was the outcome?

Each unit has their own private backyard, and I may consider allowing small pets as well to attract other tenants in the future.

Lessons learned? Challenges?

You can never over analyse a property before making offers and committing to a set price you are willing to pay. Doing this will only make you more confident in your numbers/figures to know you got something good. With enough analyzing and due diligence, cash flow follows. I spent a ton of time analyzing this deal over and over. The end result was that I ended up getting more cash flow than anticipated with my conservative analysis.

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

I'm a licensed broker and represented myself.