San Antonio TX Duplex

[Heath Shepard]

Investment Info:

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

Purchase price: $349,000
Cash invested: $69,980

I bought this duplex with two leases in place of $1,350 each. The day after I closed I found out that the seller "let the tenants out of the leases" the week before closing. at this point it seems that my agent received the information and failed to disclose it to me. the story is not over but we will see what happens.

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

I want to get into multi family and the numbers on this property looked really good. Too good apparently.

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

A real estate agent found it for me.

How did you finance this deal?

Local bank portfolio ARM.

How did you add value to the deal?

I have put tenants in place.

What was the outcome?

The property is now leased but at a lower rate that the original leases. They seem to be really good quality tenants but the value of the property was hit pretty hard as a result of the possibly fraudulent leases.

Lessons learned? Challenges?

Go with my gut. I had a feeling that something wasn't right but I ignored it. I asked the right questions but my agent gave me bad information and failed to perform is fiduciary responsibility to me.

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

Yes. I would absolutely not recommend him.