Our first, and only, duplex

[Chris Reardon]

Investment Info:

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

Purchase price: $201,000
Cash invested: $30,000
Sale price: $370,000

Purchased a foreclose duplex on an FHA rehab loan as my primary residence and rented out the lower unit. We fixed the house up over the years and recently sold it for nearly twice the purchase price. It was a great investment for us and I would like to be invested in multi-family properties in the future.

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

Recommended by a friend.

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

Through a real estate Agent. We were looking exclusively at foreclosures.

How did you finance this deal?

FHA Rehab mortgage.

How did you add value to the deal?

Comps and rents in the neighborhood. We also knew from living nearby that this neighborhood was hot.

What was the outcome?

Really great investment for us. We collected rent for 5 years which paid much of our mortgate and did a lot of work on the house. The property greatly appreciated while we were in it.

Lessons learned? Challenges?

It was an old house, so that was definitely a challenge. It had been renovated several times so every project opened a can of worms. Maintenance on old houses is a LOT of work.

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

Yes! I have a great realtor recommendation in Minneapolis. Also, I have a friend in Minneapolis that rehabs distressed properties.