#5 is alive! My fifth property is on its way.

[Luke M.]

Investment Info:

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

Purchase price: $55,000
Cash invested: $75,000

My latest acquisition, a side by side duplex with freeze damage. I came across this and couldn't pass up the opportunity, was working on the corner house when I found this deal. So the corner house is on hold while I get this oil rig up and running (more income potential). Finally a house that isn't a total gut. Should have the one bedroom unit on the right side up and running in a month, then hammer away on the left side unit.

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

Another deal I procured by reaching out to the owner of an obviously distressed property.

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

I subscribed to the white pages online, found the owner's contact information, and started communicating. I laid in the weeds and didn't appear to eager, I eventually prevailed!

How did you finance this deal?

Conventional construction loan.

How did you add value to the deal?

Adding a heating and cooling system (the reason this house was not operational), and minor interior renovations.

What was the outcome?

Outcome is yet to come...? Hopefully

Lessons learned? Challenges?

Trying to move on these reno projects faster, time is the enemy of carrying costs.

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

Becky Hermanson-Hill, a true professional and a joy to work with.