Last purchase of 2020! Two family duplex with an awesome location... the only house on a tiny city-maintained street on half an acre. This one will be a full cosmetic rehab, no heavy structural changes or repairs except updating the electric. Projected rents at $850 and rehab budget at $21,700. This one is just SO cool - It's built into the hill, the foundation is literally bedrock! The area is known for its hills, dolomite bedrock shelfs, and for being home of the Herkimer Diamond!

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

This was in our targeted community for improvement and investment, the location was great, and the numbers made sense.

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

This deal was on the MLS. We negotiated with the seller's agent who worked at length with his clients until we arrived at an agreement that worked for everyone.

How did you finance this deal?

We financed this deal on a regular conventional style mortgage. Yes, a mortgage for a $34,000 purchase. Deals aren't just for buildings- you have to go look for lending deals too and if you aren't finding them, well... it's not because they aren't there.

How did you add value to the deal?

We haven't added much yet. Plans for extended outdoor and green space will likely allow us a higher rent and lower turnover for the property... it's pretty rare to find a rental in the area with very private and wooded outdoor space. We plan to maximize the decks and balconies, as well as enhance the carved stone balconies. YES... Carved stone balconies! The outdoor space really sold us on this one - it is untapped value.

What was the outcome?

Will update when we get it up and running!

Lessons learned? Challenges?

One challenge was that we were working A) with a small lender and a loan officer with limited skill, and B) during a pandemic. Things went slowly because of the current high demand for loans, and due to scheduling and staffing issues during a pandemic in every area from attorney offices, to the title company, to the lender. This reminded us AGAIN to really account for timelines and scheduling that we cannot control. It's a lesson learned on other deals, that we were prepared for this time.

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

We worked with Community Bank on the lending. The lack of quality in service is offset by the usefulness of their loan product line.

I've started another project since then using a local M&T branch and they were immediately very helpful and offered credit products that were a great fit. If all goes well, we plan to do more with them.