Folsom (Ridley School District) Duplex

[Dan Powers]

Investment Info:

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

Purchase price: $205,000
Cash invested: $25,000

My investor just closed on this great duplex opportunity in Ridley School District. With a 2 bedroom unit located on the first floor and a 4 bedroom unit on the second and third floors. This property was in great shape and only needed minor cosmetic updates to bring in great market rent and make this a cash cow.

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

What made my investor interested in this deal was the location, condition, and the good rent as is. Located in Folsom this property falls into the Ridley School District which will make it appealing for renters. As you can see by the interior photo, the house is in great condition, with the rest of the property in identical shape. On top of all that, the property was bringing in $2500 as it sat, already above the 1% rule.

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

This deal was sourced through New Western Acquisitions and was sold on a first come first serve basis. My investor has lost out on a few similar properties to this before so when the opportunity came about she jumped on it immediately, and we were in contract within an hr of the property being released.

How did you finance this deal?

This property was purchased using our in-house hard money lender Sherman Bridge. My investor qualified for 90% purchase/ 100% rehab, and only had to bring 45k to close this deal.

How did you add value to the deal?

My investor is going to add value to this deal by redoing all of the cosmetic items in the 4 bed unit, due to that unit being the most under market rent with her plan on getting a new tenant in place. She is planning on keeping the 2 bed unit with the current tenant as is.

What was the outcome?

The outcome was a seasoned investor branching of the retail space and into the off-market world. She is very happy with her purchase and has already started on rehabbing the 4 bed unit.

Lessons learned? Challenges?

The only challenge we endured while being in contract was a delay in obtaining tenant contact info until the day after closing.

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

Dan Powers - New Western Acquisitions