1st Deal (purchased 2017)

[Christina Tkacs]

Investment Info:

Small multi-family (2-4 units) other investment in Fife.

Purchase price: $300,000
Cash invested: $20,000

Small 1970's duplex in fair condition, 2br/1ba each side. Tenants on one side were hoarders; seller moved them to the other side two weeks before purchase. Rats, human and cat pee on drywall and subfloor, all trim/doors/flooring destroyed, burned kitchen, filled with garbage, etc.

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

Purchase included an acre of vacant land next door, location was great with a lot of yard space and a farmland feel.

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

Real estate agent acted as dual agent and called me because she knew I was interested in a fixer upper.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Fixed it up through sweat equity.

What was the outcome?

Duplex is now appraised at $450,000 and rent for one side pays the entire mortgage. Will be refinancing as soon as investment loan rates improve.

Lessons learned? Challenges?

The challenge was me learning how to renovate homes. My husband is quite good at home renovation and taught me how to do a lot. Another lesson learned was removing tenants before things get worse and they surreptitiously move in their tweaker relatives who convinced their family to quit paying rent.