First Duplex in the Hottest Zip Code in America

[Tj Simmons]

Investment Info:

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

Purchase price: $100,000
Cash invested: $5,000

I bought this Duplex and did light renovations to both Units. I refinanced it and pulled out money to buy another house. I have both units rented out for $900/Month and the mortgage is $699/Month. Tenants pay for all utilities and Trash. I pay water. First actual Rental Property that I own. During the Refi they Appraised my Duplex at $159k, just 1 year after I bought it for $100k.

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

I have had an interest in passive income from a young age, and my Mom has been a realtor all my life. Having a good mentor and someone who you have watched do it, helped me make the choice to actually do it. You just need to make the first step, it was not that hard!

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

This deal was listed as a single family home for $105k. There was not many people showing it. When we showed it we found out it was a Duplex, and it was in an up and coming neighborhood, so we hoped on it as quick as possible.

How did you finance this deal?

I did an FHA Loan, I was only 20 at the Time. I put down 3.5% on $100k. It was not hard for me to save that up, I sell Insurance at my Families agency so I just saved up Paychecks, and paid the downpayment.

How did you add value to the deal?

Well....When I bought the house it was pretty beat up...I kicked out the tenants and renovated and the tenants were paying $500/Month and now I am getting $900/month out of both units.

What was the outcome?

Greatness!

Lessons learned? Challenges?

Kick out tenants AT CLOSE. do not deal with the headache...IT WAS A NIGHTMARE

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

My Mother - Amy Reedy - she is the Bomb.com. She worked for Greenridge for some time, and now she just joined Country Hills Real estate.