Washington DC Duplex Purchased with 3.5% FHA Primary Financing

[Cassidy Burns]

Investment Info:

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

Purchase price: $854,000
Cash invested: $30,835

-Purchase Price: $881,000
-Seller Credit: 3% (seller covered all closing costs)
-Net Price: $854,000
-Appraised Value: $890,000
-Net Gain of $36,000 based on initial equity from appraisal.
-Mortgage: $4,901/month (PITI + Mortgage Insurance)
-Lower Level: 1 Bed/ 1 Bath Has a tenant currently for $1,225/month. Projected Rents = $1,550/month
-Upper Level: 3 Bed/ 1.5 Bath Projected Rents: $3,600/month
-Total Projected Rents: $5,150/month

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

Low money down option. 3.5% to purchase a break even / cash flowing asset in Washington DC. I also believe this area is going to continue to grow .

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

Via MLS, I had to escalate the purchase price by $81,000 in order to win the bid. I saw the value in the appreciation, equity pay down, and ability to put low money down.

How did you finance this deal?

3.5% FHA Primary Residence Financing

How did you add value to the deal?

Purchased Under Valued ($36,000)
Will increase rents of lower level basement unit $1,225 -----> $1,550/month

What was the outcome?

Buy and HOLD

Lessons learned? Challenges?

Lots of challenges , DM me for more details

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

Cassidy Burns- BPG Residential