Fort Worth Duplex buy and hold 2

[Brian Moore]

Investment Info:

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

Purchase price: $170,000
Cash invested: $60,000

I used the proceeds from the sale of a 448 sq ft studio I purchased in 2006 to buy two full duplexes- quite a trade up! My REA helped find this pocket listing before it went to the MLS and the transaction was very smooth. I LOVED the numbers on this duplex from the beginning, but the property is 33 years old and there have been a lot of updating expenses in the first year. CAP rate is close to 10 but without significant reserves I could have been in trouble.

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

Another multi-family; 2 units under one mortgage!

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

REA pocket listing. After inspection, I leveraged some of the results to bring the price down $3K and then closed. The appraisal came in $15K above purchase price; another win!

How did you finance this deal?

75/25 conventional loan for investment property. I used the proceeds of a 1031 for the down payment.

How did you add value to the deal?

I significantly updated one unit shortly after purchase and was able to get market rent. The other side still needs upgrading but has a great long term tenant so I've held off.

What was the outcome?

A lot of expenses in the first year but hopefully the worst is over and I'm setup for a good 10 year run with this rental.

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

Trevor Dyck