2 unit- FHA loan- Complete rehab of my unit.

[Indre Dabkeviciute]

Investment Info:

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

Purchase price: $425,000
Cash invested: $30,000

2 unit in near a downtown on the city, close to shops, businesses and the Metra. I am occupying one unit and rented out the dublexed first floor/basement.

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

Duplex first floor/basement, lives like a single family home. Perfect location for myself as well.

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

I am a licensed real estate agent, constantly looking at the MLS. Quickly reacted to the post, saw the property and put in an offer the same day. I offered above asking price, property appraised at exactly the offer price. Received closing credit and a rent credit at closing for possession after closing date (more beneficial for me to close end of 2020).

How did you finance this deal?

FHA loan.

How did you add value to the deal?

Make some improvement for comfort of tenants which added value to the high rent.
Completely redid second floor unit into an open concept, new kitchen and fresh paint.

What was the outcome?

Found excellent tenants within a month of possession.

Lessons learned? Challenges?

Things move fast but you have to keep going regardless if you think you are ready or not.

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

Myself! :)