Win the Bid! Be creative and don't doubt yourself!

[James Bode]

Investment Info:

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

Purchase price: $465,000
Cash invested: $116,250

Value Add! Won the duplex by waiving Appraisal Contingency and offering a Minimum $5k for Repairs as part of the Inspection Contingency. Walking the property it was clear that owners wanted out based on some easy repairs they did not complete. Its all about thinking like the seller!

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

I have Single Family and Vacation Rental, want to cascade to larger Multifamily.

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

MLS, moved quickly when it posted.

How did you finance this deal?

Traditional financing, but I have had success going with online mortgage companies. My experience has been that they give the best rates, and since everything is automated it really comes down to you responding to their requests, rather than the expertise of your loan officer.

How did you add value to the deal?

One side of the duplex was empty. I installed new floors, back splash, light fixtures, and did a bunch of maintenance. O side of the duplex had a long term tenant, I offered them a "fair" but firm rent increase, with planned 1 & 2 Year rent increases to bring rates up to market. Plan is to renovate this side in a year or two and raise rent drastically.

What was the outcome?

Property has nice cash flow, higher that pre-purchase projections, and has added $80k in appreciation in 6 months!