NE Minneapolis Duplex Purchased in 2015

[Cyrus Hanson]

Investment Info:

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

Purchase price: $196,500
Cash invested: $3,000

Small multifamily home in high demand NE Minneapolis. 1 bed 1 bath upstairs, 2 bed 1 bath downstairs. Corner lot with oversized 2 car garage.

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

Realized I didn't want to pay rent and wanted a garage to tinker on old cars so purchased a duplex. I am single and don't have a family, so single family houses didn't appeal to me.

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

Found on MLS. Got in a slight bidding war due to multiple offers but numbers still worked well.

How did you finance this deal?

FHA

How did you add value to the deal?

Cleaned up the upstairs well. Rented out the better unit and lived in the smaller one.

What was the outcome?

Very well cash flowing duplex that I have moved out of. I still maintain use of the garage so I sometimes go over to tinker on an old car.

Lessons learned? Challenges?

Older houses generally have a bit more maintenance than expected.
Hail storms sometimes come 2 weeks after you close causing $25k in damage. This required me to shell out $8k to pitch in for repairs along with the insurance money.

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

I worked with agent Heather Foss. She was excellent and responsive, I'd highly recommend her to others.