Third Deal and 1st Duplex!

[Schuyler Witt]

Investment Info:

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

Purchase price: $72,000
Cash invested: $37,964

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?

I found a wholesaler on Craig's List.

How did you finance this deal?

Conventional loan and cash (25% down).

How did you add value to the deal?

Evicted one tenant (cash for keys) and renovated the siding and refinished all of the wood things (cabinets, doors and molding) on the inside of the house.

What was the outcome?

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 we anticipated.