Updated almost 6 years ago on . Most recent reply
Amazing Lansing MI Duplex Deal
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $45,000
Cash invested: $1,000
1400sq single family that had been half converted into a top/bottom duplex. There were separate entrances, but the downstairs unit was still just an old smelly michigan basement and needed full rehab.
What made you interested in investing in this type of deal?
I was searching for a new property after finishing a live-in-flip, house-hack, triplex in Georgia. I found a single family property in Lansing, MI on zillow that seemed like i could get for low price due to it being on the market for 130+ days and price has been dropped a few times.
How did you find this deal and how did you negotiate it?
I called the agent and negotiated seller financing on a 6mo term, balloon payment, 30yr amort, %6 rate, %20 down payment. Not an hour after getting confirmation from the listing agent that the seller agreed in principle to the term, i received a call from a fellow investor that a construction company needed a rental home to house some of their crew.
How did you finance this deal?
After calling the construction company, they agreed to leasing the whole house knowing the downstairs unit wouldn't be rehabbed and was basically a 'roof over their head' property. They agreed to a six month lease for $1600/mo paid up front. This basically gave me the down payment, closing costs, and leftover capital to add appliances to the downstairs unit.
How did you add value to the deal?
I intend to fully rehab the downstairs unit to maintain the $1600/mo total for the whole house with a minimum of $800 per unit.