My first multi-family, navigating out of state and covid.

[Lucas Morrison]

Investment Info:

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

Purchase price: $115,000
Cash invested: $18,000

Two unit duplex, 3 bed 1 and 1/2 bath on each side. All utilities paid by tenants.

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

Maximizing profits from small scale investments.

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

Found it scrolling through online real estate pages while fantasizing about retiring early.

How did you finance this deal?

Personally funded 15% down on a conventional loan with great advice and coaching from a young loan expert in the Bloomington/Normal area.

How did you add value to the deal?

Brought in a new property manager and fixed items that the previous owner had been neglecting. Happy tenants = reduced owner stressors!

What was the outcome?

Overall great deal after learning a few lessons at closing... mortgage, taxes and insurance cost me roughly $859.00 a month with each side renting for $900.00 a month. If I manage maintenance appropriately it should be an amazing rental.

Lessons learned? Challenges?

Due to covid I was not able to have my realtor in the office and the seller withheld the security deposits from the tenants because of "fixes" he had to do for finale sale. This items are things I identified during the inspection and he agreed to fix. They had a lawyer present and I was solo, fear of losing what was a great deal caused me to bite my tongue when I shouldn't have. $1.800.00 life lesson that I wont soon forget!

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

Jared Litwiller of Coldwell Banker, new addition to his team Xavier Cruise of Coldwell Banker (my property manager), Matt Erickson of AP Mortgage and Patrick McBride of MetLife Insurance. Great young team that kicked *** on this deal!