All Forum Posts by: Austin Hefner

Investment Info:

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

Purchase price: $137,300
Cash invested: $5,000

Currently trying to close on this property with 3.5% down FHA loan. It is a duplex and I will live in/fix up one unit while the other is already rented out. I may get a roommate as well to cover the entire cost of the mortgage. There is currently a complication with zoning which we are trying to iron out before closing.

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

I wanted to get started. So this is my "just do something."

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

I found this deal through Zillow, and used my investor friendly realtor to get full 6% concessions to cover closing costs, while getting the seller the purchase price they wanted.

How did you finance this deal?

This is being financed with an FHA loan.

How did you add value to the deal?

I will put in vinyl floors instead of carpet, paint the walls, and possibly open up the kitchen/living area.

What was the outcome?

This is ongoing

Lessons learned? Challenges?

Due diligence can save you from making big mistakes.

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

Marshall Ultch is a personal friend who has rentals of his own. He is licensed in Michigan and services the Metro Detroit area.

Hello All,

Background: I am new to RE investing, and i am closing on my first duplex in 2 weeks. I will be living in one half of it and renting out the other. I have little to know experience with home renovations, but i'm pretty handy otherwise, and I'm an engineer that likes to figure stuff out. I am single and have plenty of free time, but not plenty of money.

Situation: My half of the property has floor joists that are 24" on center, thus the floor is quite bouncy. Because of this, there are substantial high/low spots in the floor which is currently carpeted. i cannot put down click floor or even subfloor/vinyl without waves and cracking and just issues in general - so I'm told. 

Idea: My contractor friend said that I could just rip up the floor, leave the current joists as they lie, insert new joists 16" on center, and put down plywood subfloor. There is small elevation change from the door to the next room, but i could account for this gradually with the joists and it wouldn't be noticeable. I feel confident in my ability, and materials don't seem to be that expensive. Living room is 10' x 17' and should have NO major plumbing/electric running through the floor.

Thought Process: My vision for this unit is to take out the wall between the kitchen and living room, put in vinyl flooring, and revamp the bathroom. Once done, my value-add would likely be 150-175/mo.

Does anyone have insight on a project like this? Thanks in advance for any help.