First Investment Property, the Winter Haven Duplex

[Tim Crosby]

Investment Info:

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

Purchase price: $144,500
Cash invested: $1,500

This was the first investment property I bought and so we were able to take advantage of FHA and Down Payment assistance provided for first time home buyers. We paid a little more for the home than I wanted to pay, but the home had a brand new roof and HVAC system at the time of purchase. Most importantly, even though we paid more than I wanted, we didn't over pay!

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

I wanted to house-hack, so that's what we did. My wife and I moved out of a 3/2 1200sqft mobile home and into a 2/1 650sqft duplex and it was probably the best decision we made at that time!

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

We started looking at other property and one of the homes was a bank owned home, we were a little impatient, so we ended up calling two realtors to the same house. The first agent was okay, but wasn't really motivated, the other was quick to respond and extremely eager to work with us, so we went with her. We passed on that house, but she showed us several properties from then on via the MLS.

How did you finance this deal?

I got an FHA loan and because it was our first home, we were able to use a down-payment assistance program. The only thing we really had to pay for was the due diligence - home inspection, survey and appraisal.

How did you add value to the deal?

We really didn't. Lol. When we move out, we plan to update the cabinets and paint. That should help out, at least a little!

What was the outcome?

I bought the duplex and still own it today.

Lessons learned? Challenges?

Look longer, be more patient and find something great, not just good. Also, consider rehab jobs. It's scary at first, but the upside is much greater and BRRRR let's you go on indefinitely, so do that!

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

Yes. April was an excellent help! I don't think she's on here, but I would definitely recommend her to anyone who asks!