Side by Side Duplex- Buy and Hold

[Melissa Kirk]

Investment Info:

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

Purchase price: $162,000
Cash invested: $162,000

Purchased this duplex property with a self directed IRA. Each unit is 3 bedrooms. We'll be renovating one side shortly to increase the rent.

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

I wanted to a typical buy and hold long term rental. We decided to purchase with a self directed IRA. I appreciated that the windows were newer and each unit had a furnace and central AC. This is unusual for multi-family in this location. Most all have window AC and electric heat. This is also a side by side duplex so that was more desirable in our opinion.

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

This was on the MLS. I negotiated over $10K off the price due to the current rents as well as removing any commission from my side of the deal. It was equivalent to a higher offer if a buyer brought their own agent to the deal.

How did you finance this deal?

Paid 100% from a self directed IRA

How did you add value to the deal?

We plan to renovate one side as it's in poor condition. The renovation will be about $10K and we'll raise the rent to approx $1,000 a month. The other side is nicely renovated but is currently renting at $900, which is $100 under market.

What was the outcome?

So far so good. We haven't owned it long enough

Lessons learned? Challenges?

It certainly has been a learning curve with buying through a self-directed IRA.

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

I'm a Real Estate Broker, I highly recommend myself! :)