Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $75,000
Cash invested: $15,000
Duplex that had existing tenants when we purchased the property. The same tenants still reside in the unit and have been extremely consistent in paying their rent on time. Both tenants are elderly and have fixed income so we allow them to pay bi-monthly which helps them be able to pay for other necessities during the month.
What made you interested in investing in this type of deal?
Looking to scale up our real estate portfolio by buying multi-family units.
How did you find this deal and how did you negotiate it?
Found the deal on MLS. An inspection found some big ticket items (roof, upgrade electrical service and switch to breaker boxes) that needed to be taken care of by the end of the year so we were able to negotiate with the seller for $25k less than asking price.
How did you finance this deal?
We financed this deal through a traditional bank.
How did you add value to the deal?
In talking to one of the tenants, it was determined that the duplex was approved by the city for a lead abatement program under the previous owner. However, the owner never filed the paper work with the city. When we got the property, we filled out the required paperwork and the city replaced the windows, doors, siding along with painting the exterior trim, and fixing some electrical issues,
What was the outcome?
Due to the work completed by the city and us, the house has appreciated in value.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, Dan Ogens from Homestead Realty.
