Another Duplex Purchase in Fresno, CA

[Franklin Spees]

Investment Info:

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

Purchase price: $179,000
Cash invested: $45,000
Sale price: $179,000

Duplex in Mayfair Neighborhood of Fresno, CA. Newer roof, new windows with steady paying tenants. Minor upgrades and reports came back pretty clean. Good long term hold with strong rents.

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

1-4 deals are readily achievable and are to less likely require partners. Residential financing with strong rents.

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

MLS. I represented myself as the broker, offered slightly higher price and then dropped price by amount of the commission just prior to close of escrow in order to drop purchase price, reduce property taxes and still win the deal.

How did you finance this deal?

conventional loan through Quicken which was very smooth.

How did you add value to the deal?

Brokered it, I manage it and had existing vendor network make minor repairs.

What was the outcome?

Performing as expected.

Lessons learned? Challenges?

Only limitation is new rent control which will slow me getting up to FMV rents.