Investing in a duplex in Rosemount MN

[Kevin Quintanilla-Toledo]

Investment Info:

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

Purchase price: $350,000
Cash invested: $800

I owner occupy one side and I pay 800$ for my side and the tenant pays 990$ on the other side. Unit A is a 2 bedroom and 1 bathroom but the basement is livable and could be converted to a third bedroom. Unit B is the side I live on is a 4 bedroom and 2 bathroom. The cash I invested was actually only for the inspection and the appraisal. I used the VA loan to buy this gem. The monthly cash flow is actually negative but when we move out the monthly cash flow will be $1250.

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

I have owned a townhome and a single family property previously. I currently have one single family home which is currently rented and I wanted to expand to a multifamily property.

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

I found this deal on the MLS and I did very little negotiating because the seller was very motivated.

How did you finance this deal?

I used the VA loan.

How did you add value to the deal?

I was very confident and I explained to the seller's agent that I did not want to play games and nickel and dime the seller. I knew what I wanted and offered a fair price in the time frame that I said I would.

What was the outcome?

An executed purchase agreement!

Lessons learned? Challenges?

Communication was huge! I felt like the deal had its challenges such as bad tenants. The side we were trying to move into had tenants who where difficult to work with. We had to move the closing date one time to allow them to move out even if it was past the agreed upon time. The property ended up having a main sewage line issue which we worked around but in hindsight I should have done a more in depth inspection specifically on the sewage line. But the issues were fixed even after we closed.

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

I represented myself as a buyer's agent and heck yeah I would recommend myself!

[Kevin Quintanilla-Toledo]

@Tanya Rooney 

Thanks! Yeah I got lucky because the numbers don't make sense for most of the properties in this area and this is a multi family. Yeah I have seen a lot of chatter about the refinery guys and them needing furnished rentals. Honestly the VA loan is amazing and if I didn't have that I wouldn't be able to acquire the properties I have.