Duplex, 05 Fort wayne

[Seth Brown]

Investment Info:

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

Purchase price: $69,000
Cash invested: $10,350

Upstairs is a 1br/1ba apartment - Market rent $550 - current rent $500
Downstairs is a large 2br/1ba apartment - Market rent $750 - Current rent $0 ( I live there, was rented when I bought it for $595)
Large detached garage that could be rented as storage - market rent $85 - current rent $0 (being used by me)

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

I have a tenant paying me monthly and still have an extra bedroom I could rent for about $300. It's given me the ability to continue to save money, pay off some student loans plus lower income tax. Also the house is appreciating since it's in a desirable neighborhood.

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

I negotiated very badly since it was my first time buying a house. He asked me what i'd buy it for and i told him 69k and he said sounds good. I found it on a Facebook buy and sell page.

How did you finance this deal?

Conventional OO loan

How did you add value to the deal?

It was under rented by about 200 dollars a month total.

What was the outcome?

The outcome was roughly what i'd planned. The only unexpected thing was I re piped the downstairs water from PVC to pex.. it had a couple leaks and I figured it'd be easier to get it done with me living there vs when it's rented. That only cost $1500.

Lessons learned? Challenges?

Negotiate better.