Middletown Delaware duplex life

[Corbin Brandt Daviston]

Investment Info:

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

Purchase price: $205,000
Cash invested: $6,175

House hack, 2225sq ft duplex. I currently live in one unit while doing renovations and renting out the other half (inherited tenant) for $950 per month on a $1226 mortgage.

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

I wanted a deal that would make my monthly payments less than my current apartment rent.

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

I found this deal on the MLS the first week it was posted. The house was listed for $215,000. After walking the property with an inspector I was able to get this deal for $205,000 and seller pays all closing costs due to some deferred maintenance.

How did you finance this deal?

I financed through an FHA loan that allowed me to put down 3.5%.

How did you add value to the deal?

I have been renovating the half I am living in. Once that is complete I will renovate the other half.

What was the outcome?

So far I have collected 3 months rent from my inherited tenant.

Lessons learned? Challenges?

Get a through inspection, I had termite damage in the laundry room that was worse than expected and had to spend a couple thousand dollars to tear down a wall and build back from new.

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

Dawn Wolf : Realtor
Ben Pugh: Residential Mortgage Services