My First Real Estate Investment!

[Quincy Hall]

Investment Info:

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

Purchase price: $80,095
Cash invested: $23,200

I purchased a 2160 sq ft duplex in Chattanooga TN. It is a 2 bedroom with 1.5 bath. I purchased it and inherited a tenant who pays $600/m. I will be doing a few updates to that side of the duplex and raise the rent up to the market value for the area. The other side is currently under going the rehab process and i will the rate will be between $750-800.

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

The instant equity. I purchased this property with $50k in equity before the rehab.

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

My wife found it on zillow but it did not have a price associated with it because it was up for auction. We drove by the property and saw the auction sign out front. We called the number and we place a pre-auction bid in and the bank accepted.

How did you finance this deal?

Conventional Loan and Borrowed money from 401k.

How did you add value to the deal?

By rehabbing the property

What was the outcome?

Yet to come!

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

We worked with David from Supreme Lending and a title company. No real estate agent was used for this purchase.

[Quincy Hall]

@Q Johnson Yes i was able to view the inside. I aslo had the opportunity to speak with the owner which live on the unfinished side. She was house hacking but some how feel into foreclosure. During her time of turmoil she let me in and gave me the 411 on the issue she faced in the pass and the current one's.

The biggest problem was water damage from a busted pipe and water damage to the added porch. As for renovation, she had pulled up the carpet on the stairs, removed the laminate flooring and scraped some of the popcorn ceiling of the ceiling.

The side with the tenant needs very little work. The most expensive purchase will be a stove and paint.

I am estimating that the total rehab will cost 10k. I will keep you post on that, lol.

The appraiser that gave the initial appraisal said that once the rehab is completed the duplex will be worth $155,000.