Third deal! (Duplex)

[Schuyler Witt]

Investment Info:

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

Purchase price: $72,000
Cash invested: $3,796,413

This is a duplex that was bought from a wholesaler. The property was tenant occupied BUT one of the tenants wasn't paying rent AND the property needed serious cosmetic work.

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

7 Years to 7 Figure Wealth!

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

From calling a wholesaler on Craig's List and asking him if he had anything to sell.

How did you finance this deal?

Conventional loan and cash.

How did you add value to the deal?

We gave one of the tenants cash for keys, made improvements to the kitchen, all wood finishes in the property and removed the old cedar siding and installed vinyl. This enabled us to raise rents by $100.00 each side.

What was the outcome?

Its a great rental!

Lessons learned? Challenges?

Lesson 1: Profits increase and work decreases with good tenants. This was our first personally managed property, and replacing problem tenants with great ones ensured that we receive rent every month and minimize expenses.

Lesson 2: Always make contractors sign their bids for work as a contract. We hired the contractor with the lowest bid to do the siding replacement. He was honest but inexperienced, and the work turned out to take much longer and be more in-depth than he (or we) anticipated