Cash Flow off MLS Listings

[Jack Luzecky]

Investment Info:

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

Purchase price: $275,000
Cash invested: $68,750

Purchased a 2-family in the North Hampton neighborhood of St. Louis City. The duplex was renovated in 2014. At time of purchase it was 50% occupied, with one tenant paying $1,250/month. The 2nd unit will rent for $1,250+. The property appraised for 51k higher than the sales price so a refinance will likely occur in the next 6-12 months after purchasing the property.

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

The property is considered to be in an A-B class neighborhood in St. Louis City.

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

MLS. I called the agent the first day it was listed on the market. The agent seemed motivated to reach an accepted contract quickly. Within 12 hours the agent received my offer sight unseen. Within 24 hours I had an accepted offer. Based on the agent's remarks, he received a lot more interest from agents/buyers after the contract was accepted.

How did you finance this deal?

Conventional - 25% down - 3.325% interest rate - 30 year fixed

How did you add value to the deal?

I plan to increase the rent on the vacant unit from $1,250 to near $1,400. Otherwise, it is a turn key investment as it was rehabbed in 2014.

Lessons learned? Challenges?

Be quick to submit an offer in a highly competitive market.

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

I am a realtor and represented myself.