Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago,

User Stats

3
Posts
1
Votes
Jon Wilson
1
Votes |
3
Posts

First deal lucky with a 1929 duplex

Jon Wilson
Posted

Investment Info:

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

Purchase price: $153,000
Cash invested: $43,000
Sale price: $245,000

I Lived in half of this duplex while renovating it myself. Completely gutted and rebuilt kitchen and bathrooms and refinished the hardwood floors. I did everything in this 1929 Bungalow.

I moved out after I got married and rented both upper and lowers for 2 years prior to leaving Milwaukee for Charlotte.

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

This was a way to house hack and save up some money by living in the upper and renting out the lower unit. I love the idea of getting someone else to help share the load.

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

I stumbled on it after a buddy of mine was looking for a place to rent and he knew I was interested in buying a duplex. He started a conversation with an investor who had a for rent sign out in the yard and the investor said that although this house wasn't for sale he had another one that he would sell. I called immediately and negotiated a price over the phone.

How did you finance this deal?

It was traditional lending but I only needed 10% down because it was going to be owner occupied.

How did you add value to the deal?

I completely renovated the 1929 kitchen and bathrooms, refinished hardwood floors under layers of carpet and VCT, and added central air conditioning.

What was the outcome?

I got luck and all of my renters were good. I tried to rent to young professionals like me. Saved up to purchase my first single family home.

Lessons learned? Challenges?

Paying the capital gains tax at the end was not fun and although I knew it was coming it was still hard. I thought at some point it would be good to refinance into a 15 year mortgage but that was a waste of money as I wanted the larger stream of cash flow.

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

No, it was a long time ago.

Loading replies...