All Forum Posts by: Greg Van Brunt

Investment Info:

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

Purchase price: $49,000
Cash invested: $15,000

Small duplex built around 1950. approx. 600sf, 2bed 1 bath each side. Purchase price was 49K. Rent is $600 each side. Both side have been remolded since purchasing. One side has been rented since purchase which covered the mortgage and some expenses. As of 8-16-21, both sides are remodeled and occupied.

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

I decided to buy this duplex simply because I saw that I could buy it for about the same price as a SFH but rent it for twice the normal amount.

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

I found this on the MLS. I offered less than asking, the seller wasn't budging. I then discovered it was in a flood plain. He dropped his asking by $1,000. As closing approached, I found out a deceased family member was still on the deed and it had to go to probate. After about 6 months delay we had a closing date.

How did you finance this deal?

Traditional Mortgage

How did you add value to the deal?

Remodeled both sides with new bathrooms, texture, paint and flooring.

Lessons learned? Challenges?

I've learned to pick my contractors better or learn to do the work myself. I cut corners with cheaper contractors and had to redo some of the work or find another contractor. I remodeled most of one side myself. I paid contractors for most of the work on the other side. I'm not as happy with the contractors work.

Investment Info:

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

Purchase price: $49,000
Cash invested: $15,000

Small duplex built around 1950. approx. 600sf, 2bed 1 bath each side. Purchase price was 49K. Rent is $600 each side. Both side have been remolded since purchasing. One side has been rented since purchase which covered the mortgage and some expenses. As of 8-16-21, both sides are remodeled and occupied.

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

I decided to buy this duplex simply because I saw that I could buy it for about the same price as a SFH but rent it for twice the normal amount.

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

I found this on the MLS. I offered less than asking, the seller wasn't budging. I then discovered it was in a flood plain. He dropped his asking by $1,000. As closing approached, I found out a deceased family member was still on the deed and it had to go to probate. After about 6 months delay we had a closing date.

How did you finance this deal?

Traditional Mortgage

How did you add value to the deal?

Remodeled both sides with new bathrooms, texture, paint and flooring.

Lessons learned? Challenges?

I've learned to pick my contractors better or learn to do the work myself. I cut corners with cheaper contractors and had to redo some of the work or find another contractor. I remodeled most of one side myself. I paid contractors for most of the work on the other side. I'm not as happy with the contractors work.

I'm in Shawnee and just bought my first duplex. Seeking qualified tenants for one side and rehabbing the other. I live and work in Shawnee s I'd be glad to meet up. I attend the meetup Dylan runs. Good group of folks.

Thanks for your replies. I'll check on that rider. I've decided to continue and appreciate the added income possibility.

I went under contract to buy a duplex. One side is rented and one side vacant. Since I completed inspections, the current property manager found a renter for the vacant side. My agent told me it's a month to month agreement with deposit. Should I be concerned? Is this normally accepted? My concern is I agreed and accepted as is. I dont have any say now if the property is destroyed between now and then... any thoughts? Thanks. This property is located in Tecumseh, OK. 

I like the idea of no vacancy but it's my first rental property and would like some input. Thanks!

@derek bailey, thank you very much. Sounds like words of wisdom to me. I'll keep working on it.

I've been following BP for around a year or more. I've listened to lots of podcasts, BP and others. I'm reading books. I've looked at numerous houses. But the ones in my price range, (limited cash for down payments etc) are pretty bad off. Not just cosmetics, but foundations and old wiring etc. Am I doomed to start with one of these? The ones that are in better shape are out of my price range. For traditional mortgage I need at least 20% down. I've been told I cant uds my VA for a rental purchase. I'm getting frustrated. Is this just growing pains I have to fight through or do I just keep saving money until I have the down payment? I dont want to get in more debt to start a life of passive income. Thanks for your input

@Dylan B. has been helping me.

I have the cash to buy it. I had a couple contractors look at the roof and other repairs. My lender has pre approval for the repairs. If I rent it, I dont have to fix everything  up front nor do I have to make everything perfect. If I sell, I do. 

I've been looking at a SFR for a couple weeks. It need s a on of work, floor leveling, roof replacement (rafters and all) a new bathroom to be rentable. (Although I've heard it could be rent with as little as having roof replaced). I'm getting an idea of how much is needed to make this thing cash flow. My question is, it' my first venture. Should I even tackle a job this big? If I do, do i do as little as possible to get it rented or do all that needed to flip it? Renting will yield a smaller cash flow but flipping might produce a larger profit, quicker. Should I tackle this project as a first timer starting out?