Duplex investment - East Haven/CT

[Christopher Fabiany T.]

Investment Info:

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

Purchase price: $256,000
Cash invested: $2,000

Duplex with an in-law studio in the basement.

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

Really close where I live, I was going to be able to manage it my self. Nice neighborhood and high rents.
The upper level I was going to be able to increase the rent, just closing a weird second living room it has and convert it into a bedroom.

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

I found it in the MLS, the market was pretty hot so could not negotiate much, had to pay the asking price, but the numbers made sense to me

How did you finance this deal?

Really good local mortgage broker, conventional loan 20% down payment.

Lessons learned? Challenges?

Unfortunately I inherit tenants. Worst mistake ever. They did not want to sign a new lease agreement, and the rent were under market value. I could not do cash for keys, so right now my lawyers are taking care of the eviction. This issue thought me big two things, one never inherit tenants and two even if you do not have the social security of the tenants you can report delinquent to the credit business bureau, I use Sperlonga Data & Analytics if you are interested.