First Deal - Michigan Duplex

[Austin Hefner]

Investment Info:

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

Purchase price: $137,300
Cash invested: $5,000

Currently trying to close on this property with 3.5% down FHA loan. It is a duplex and I will live in/fix up one unit while the other is already rented out. I may get a roommate as well to cover the entire cost of the mortgage. There is currently a complication with zoning which we are trying to iron out before closing.

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

I wanted to get started. So this is my "just do something."

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

I found this deal through Zillow, and used my investor friendly realtor to get full 6% concessions to cover closing costs, while getting the seller the purchase price they wanted.

How did you finance this deal?

This is being financed with an FHA loan.

How did you add value to the deal?

I will put in vinyl floors instead of carpet, paint the walls, and possibly open up the kitchen/living area.

What was the outcome?

This is ongoing

Lessons learned? Challenges?

Due diligence can save you from making big mistakes.

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

Marshall Ultch is a personal friend who has rentals of his own. He is licensed in Michigan and services the Metro Detroit area.