My First Purchase Was a Duplex in St Louis South City

[Dan White]

Investment Info:

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

Purchase price: $92,000
Cash invested: $53,000

PURCHASED FOR 92K FORECLOSED IN 2012, PUT IN 16K INITIAL CAPEX AND RENTED FOR ROUGHLY 750 AND 800 EACH UNIT FOR A FEW YEARS. THEN RECENTLY ADDED 37K AND BUMPTED RENTS TO 845 AND 1,000 BRINGING IN 350 CASH FLOW. 'ALL-IN' AT 145K AND WILL APPRAISE FOR ABOUT 220K.

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

Flexibility to live in one unit (well- I framed out a space in the basement) and rent the others!

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

Through an agent, it was a foreclosure

How did you finance this deal?

Family initially, then refinanced with bank

How did you add value to the deal?

16k in repairs. Managed the projects myself.

What was the outcome?

150 cash flow per door and 40% equity within 3 months

Lessons learned? Challenges?

Would have hired better workers off the bat

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

An agent- yes although he is no longer an agent!