First (intentional) Investment in FL

[Andrew Varney]

Investment Info:

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

Purchase price: $209,000
Cash invested: $61,200

I found two adjacent Duplexes owned by the same seller. He wanted to sell them as a package, but I couldn't get the numbers to work for both. He took them off market, but I told his Realtor to give us a poke in the future if they had someone that wanted to buy one and not the other. A few months later they called and said they had a buyer for one property and wanted to know if I was still interested in this one.

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

The SFR prices in the area are still a little hot and the cost vs. Rent hasn't made a lot of sense. There are a lot of seasoned flippers in he area as well, and I didn't want to compete with them on my first deal. Duplexes seem to have solid returns vs. cost in my area and appreciate well over time.

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

We found this on the MLS, but it had gone on and off multiple times. The owner was trying to sell a package all at the same time for a 1031, and was having trouble getting someone to acquire both. We had let them know we were interested, but walked away until something could change. When they had another single buyer, they came back to us and we were able to lock up one of the buildings.

How did you finance this deal?

Conventional 30yr Mortgage with 25% down

How did you add value to the deal?

It was relatively turnkey. There needs to be some minor updates and electric work, but it is in operation as is.

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

Realtor in Sarasota area: Courtney Tarantino