1st Multi Family Duplex- FHA 203k

[Matt Grubb]

Investment Info:

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

Purchase price: $105,000
Cash invested: $7,250

I'm currently under contract on a duplex in Columbus, OH. I'm doing an FHA 203k loan. I'm currently working with contractors to get the bids in, but I estimate about $45-$50k in renovations. I originally thought I'd put a long term tenant in the vacant side while I live in the other, but am now looking at doing short term rentals through Airbnb to maximize cash flow right from the start. I know this is more hands on work, but I feel it's worth it. I plan on updating as the transaction moves forward. Here's to financial independence!

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

I found this on the MLS and negotiated directly with the listing agent. I originally offered well under the $118k asking price but got the seller to agree to $105k and to help with closing costs.

How did you finance this deal?

FHA 203k loan

How did you add value to the deal?

I plan on adding value by renovating the property top to bottom. All new mechanicals, interior/exterior paint, countertops, refinish hardwood floors, etc.

What was the outcome?

I'm still working through the 203k loan and working with contractors.

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

I'm a licensed real estate agent in Ohio. I have been working with Chris Kirkpatrick from Homeside/Lower on the financing and he's been great. I've worked with him a number of times when representing buyer clients and he does a great job. I also found a HUD or FHA 203k Consultant. His name is Doug Foster and it's been great working with him so far.

[Matt Grubb]

That's awesome @Matthew Porcaro! 

I plan on updating periodically throughout this process. So far, I've learned its really important to get in touch with a 203k/HUD consultant before you ever write an offer. They are a great resource and he was able to get me in touch with contractors that understand my needs and all the specifics that go into a 203k loan.