Side by Side duplex purchase

[Paul Kelly]

Investment Info:

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

Purchase price: $74,000
Cash invested: $20,000
Sale price: $130000

Side by Side duplex with market rents once complete at $900 per side. 3 beds, 1 bath, ea side. Property needed both interior and exterior work ($20k) All in 94k, bank ARV expected to be $125,000 our better. Montl

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

It fit the parameters of what I buy.

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

Off market with a local R.E. Agent

How did you finance this 

Private money for rehab, I put down $15,000 for 20% down. All money returned with local credit union using cash-out refinance
After improvements.

How did you add value to the deal?

Professional contractors went in and did the work needed as I’m in
CA. Concrete, paints, flooring, appliances, tuck pointing. Replaced existing Tenants and raised rents.

What was the outcome?

Pending

Lessons learned? Challenges?

Be sure to ask for removal of bad Tenants and that the house will be empty of all garbage inside and out prior to close. Get a thorough inspection and do your appraisal with the bank early.