Investment Info:

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

Purchase price: $387,000
Cash invested: $60,000

Contributors:
Jordan Moorhead @Tim Swierczek

Up/down duplex in southern Minneapolis, on the border of Edina. Both units are a 3 bed - 1 bath set up. Top unit has been recently renovated and should fetch top dollar rent. enants currently living in the bottom unit on a month to month lease. I plan to move in, and do updates similar to the upstairs unit to help get higher rent and force appreciation. I am then going to rent out the extra bedrooms. Going to be house hacking the property! It should cashflow (~ $1100/mo) once I move out.

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

It's in a good location. It has a huge shopping center about 5 minutes away and the MSP airport is about a 10 minute drive. Not to mention its a good neighborhood. I liked how the property was meant to be a duplex and the layout feels natural. Half of the unit was renovated already, so I can get to collecting rent right away while I dip my hands into renovating the bottom unit.

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

Through the MLS and my agent. Did a low down payment option, so I didn't fuss too much over the purchase price as it really didn't change much for me. Negotiated $5k at closing to be paid by the seller using the inspection report.

How did you finance this deal?

10% down conventional with mortgage insurance buyout.

How did you add value to the deal?

I am going to be increasing the rent for the top unit as well as updating the bottom unit. This should help get the rent up for the lower unit to match that of the top unit. It should also force some appreciation. Lastly, I will be living in the unit and self managing for the time being.

What was the outcome?

TBD.

Lessons learned? Challenges?

Things might seem slow at points, but then everything hits at once. I find its best to be prepared ahead of time if you can (obviously), but learn to tackle one thing at a time and eventually tasks will stack up and lead to your end goal.

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

Yes, Jordan Moorhead (Realtor) and Tim Swierczek (Lender) were super helpful throughout the process and continue to be great sources of information. They do a great job of helping out the community here on Biggerpockets and I highly recommend their services.