A Duplex Close to Home

[Sam Schroeder]

Investment Info:

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

Purchase price: $94,000
Cash invested: $25,000

Upper/Lower Duplex. Came with tenants who pay a fair but below market rent based on the quality of the interior finishes/condition.

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

This property is located in a neighborhood that is on the upswing and may really take off, depending on the pending development and re-development of two large parcels near the lake/river.

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

My wife drove by on her way to work and saw the listing agent (who also owned it) putting up the sign. Because I knew the listing was coming I was 1st and gave him what he was asking for.

How did you finance this deal?

Conventional 30 year fixed.

How did you add value to the deal?

Long term tenants are happy. I'll keep them in place and eventually when the units turn over I plan to renovate and raise rents substantially.