Learning RE Investing with our first Buy and Hold Duplex

[Alex Heidenreich]

Investment Info:

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

Purchase price: $184,000
Cash invested: $55,000

We purchased a Duplex as our first deal to get into the game and start learning by doing.

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

We liked the idea of the Duplex to help mitigate vacancies on one side or the other.

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

This was an MLS deal

How did you finance this deal?

We used traditional financing

How did you add value to the deal?

We fixed minor issues around the property and did cosmetic updates.

What was the outcome?

We were able to raise rents

Lessons learned? Challenges?

Double check everything and verify with the tenants. The leases we were given stated that the tenants paid ALL utilities. When we went to have them sign their new leases, they both told us that they have never paid water. We ended up having to pay water and we had not budgeted for this.

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

Yes, we worked with Chloe Teasley and Remington Lyman with Reafco