Duplex can be a great way to start in RE investing

[Max Shyshnyak]

Investment Info:

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

Purchase price: $99,000
Cash invested: $20,000

Our first rental investment. It's done well in both cashflow and appreciation through ups and downs with tenants. Big decision now: refi and hold or sell.

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

Low price (for our area), good rent/value ratio, multi-family (at times when one side is vacant, the other covers costs).

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

I found a RE agent who specialized in investment RE. The property needed TLC so we leveraged this fact to get it under asking.

How did you finance this deal?

Savings

How did you add value to the deal?

Cosmetic remodel+rasied rents

What was the outcome?

Appreciation and rent growth above market average

Lessons learned? Challenges?

Challenges: many applicants but few solid candidates. Lessons learned: a responsive plumbing company is very important.