Purchase of Duplex property

[Kyle Hood]

Investment Info:

Small multi-family (2-4 units) note investment investment.

Purchase price: $100,000
Cash invested: $1
Sale price: $124,900

purchased with no money down and sold it as an escrow agreement with 50K down. My loan is on a 15 yr term and purchaser's is on a 30 yr term. Their interest rate is 2% above mine. Purchaser to pay off in 3 years. I was able to take the equity I had (roughly $25K) and pay on another project and then the remaining money ($25K) pay down my mortgage to be the same amount as the purchasor's note. Upside - still make a little money in 3 years and possiblilty of having property returned, was able to finance another project. Downside - having sold the duplex.

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

I am a Realtor and obviously self employed. Need to save for tommorrow.

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

It was my H&A guy's property so I knew it had been taken care of. it cashflowed well and new could get in with no money down.

How did you finance this deal?

did it as a construction loan, It appraised at $125K when purchased and was able to get 85% financing.

How did you add value to the deal?

increased rents.

What was the outcome?

turned it into an owner finance deal

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

myself