1930 Federal Revival Duplex

[Matthias Pieplak]

Investment Info:

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

Purchase price: $122,000
Cash invested: $57,000

Cash flow: $950

2-units, 2,700 ft2. Each unit has 2 bed, 1.5 bath a finished attic room and a full, half-finished basement.
Structure: 2-story, wood frame, aluminum siding, composite roof, 2 fireplaces

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

It was the house next door. A duplex and in need of repairs. The ideal rehab opportunity the get into rental houses.

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

Former tenants told us it would come up on the market. After my first attempt to personally contact the owner/listing agent weren't taken serious, we got ourselves a local realtor with rental-property experience who had a reputation for staying on top of things.
Offered full asking price. Negotiated after inspection, despite listed AS-IS.

How did you finance this deal?

Equity partner and again, GuaranteedRate. Co-signers.
25% down, 3.5% interest, 30-year-fixed.

What was the outcome?

We closed 33 days late due to underwriting, but well within our budget.

Lessons learned? Challenges?

Understand the difference between a residential vs. investment mortgage, and what consequences that has for your underwriting requirements.
When working with equity partners, structure your finances well ahead of time.
Consider working with local lenders over nationals.

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

Brandon Johnson with ERA Martin & Associates