First investment duplex

[Peter Mittendorff]

Investment Info:

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

Purchase price: $310,000

1885 built stucco up down duplex. 2 bed 1 bath each unit roughly 900 square feet.

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

The location is the most important for my situation as i am managing it myself and this is only 2 blocks from my single family residence. The other important considerations I made was that it was currently rented and is under rented for the market.

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

Found on the mls offered 8.5% off asking after being on market for more than 40 days.

How did you finance this deal?

Traditional financing with 25% down.

How did you add value to the deal?

Have not yet done any equity improvements as it is fully rented. My intent is to move into the upper unit renting out my single family home. I’m planning to remove carpet, refinish original wood floors, remodel the kitchens and update appliances in both units and add a third bed room in the attic for the upstairs unit. After I’m there a year refinance as owner occupant and have some equity to pull out as part of my down payment is a heloc on my single family home.

What was the outcome?

So far I have just signed leases and collected rents.