Ranch style duplex investment

[Alex Moore]

Investment Info:

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

Side-by-side ranch style duplex. Added 3rd bedroom to one side while tenant occupied - increased rent by > 1% rule. Plan to add the 3rd bed to the other side in spring 2022. Then refinance in 2022.

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

Cash flow

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

We found the deal through our local realtor. We put in a strong competitive offer with an escalation clause and won the bid because of good closing terms even though we were the second highest bid.

How did you finance this deal?

Conventional financing, 25% down, 30 yr term.

How did you add value to the deal?

Addition of 3rd bedroom on one side with plans to add to the other side upon unit turn.