First Duplex - Nashville, TN

[Crystal H.]

Investment Info:

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

Purchase price: $379,000
Cash invested: $150,000

1980-built duplex in East Nashville/Inglewood (37216). Seller purchased it 6 months ago and flipped (apparently was home to a hoarder.) They added new paint, floors, bathtubs and got new tenants in place. We will cash flow $381/mo after all expenses, CapEx, OpEx, Vacancies, etc. and expect to hold for a long time to realize some of the appreciation in this market.

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

We liked the idea of a duplex so we could get 2 units on one transaction. We also have small kids so aren't ready to put tons of our own time in right now so we liked that it had already been rehabbed, but there's still some room to improve (kitchen, bathroom vanities, landscaping, etc.)

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

MLS, worked with our agent. We low balled the offer, went back and forth a bit with the sellers before landing on a purchase price. The property appraised for $17k over sales price (+4.5%)

How did you finance this deal?

All cash offer, but we secured 60% financing during the 3 weeks between signing the offer and closing.

Lessons learned? Challenges?

Having the ability to do an all cash offer with no financing contingency definitely got us ahead on this one (and on several others that we ultimately ended up not purchasing.) While not a crazy discounted deal, we are happy to be almost 5% under appraised value out of the gate with little to no immediate work to do!

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

John Griffith at FYKES. During negotiation we almost walked over a difference of $7k and he encouraged us not to - he was right!