First out of area duplex

[Paul Kelly]

Investment Info:

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

Purchase price: $92,000
Cash invested: $14,000

Buy and hold duplex. 92k pp. 14k improvement. 144k ARV. Refinance at 80 LTV. 115,200 new loan. Return $ to investors plus cash out of $9200.00. Rents are $1500* per month. $770 piti. 7% Expenses, 7% vacancy, 7% cap_ex, 10% PM. (31% = $465.00). Net mo profit this year $265.00. Fully stabilized rents $1700.00 per mo next year after improvements. Brings mo profit to $465 per mo. $232.50 per door.

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

My home town and it penciled

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

MLS and a good REALTOR

How did you finance this deal?

PRIVATE MONEY PLUS MY OWN CASH

How did you add value to the deal?

Cut back tons of overgrowth, added new exterior paint, new front porch, landscaping, sidewalks around house, new water heater, improved drainage, and set plans for rent increases over the next 1-2 years.

What was the outcome?

Great, made sure the numbers worked and stuck to a purchase price offer.

Lessons learned? Challenges?

Be present for inspections and get up on the roof and peer in every gutter.