My first Duplex in 2015 - Vancouver, WA

[Denny Le]

Investment Info:

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

Purchase price: $275,000
Cash invested: $10,000

I searched for duplexes in my area using Zillow in 2015. At the time, new duplex listings came up often. I sent in offers for approximately 5 duplexes until an offer was accepted.

Some information about the duplex:
Purchase Price: $275,000.00
Down Payment: 3.25% FHA loan
Mortgage Payment: $1,750.00
Bed/Bath: 2Bd/2Ba per unit
SF: 1,000 sf per unit
Total Rent once fully rented: $2,155.00
Cash Flow before expenses: $405/month

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

Living in one unit and renting out the other unit made this deal really interesting. I wanted to invest in a property while buying a primary home.

What was the outcome?

I analyzed the duplex and found that if I rent out one of the units, I would be paying 1/3 of the mortgage payment out of pocket. I was paying off my school loans, so decreasing the mortgage payment was great. I rotated through roommates while living in my unit, which helped for 75% of the mortgage payment.

Lessons learned? Challenges?

Purchasing a duplex while renting out the other unit and any spare bedrooms helped me save money for future investments. This is the best route for any newbie investor who wants to get started on a small scale.