Investment Info:
Small multi-family (2-4 units) other investment.
Purchase price: $156,000
Cash invested: $39,000
This is a duplex on Smithville Road. I rent out one side for $800/month, and Airbnb the other side. Interior has been freshly renovated, and outside will receive many updates soon.
What made you interested in investing in this type of deal?
It is in my target business structure of buying 2 to 4-unit properties for the next few years, it was inexpensive, in a good area, a nice property, and it will cash flow incredibly. The mortgage is only $783/month, one side is rented out for $800, and the other side will get Airbnb profits of around $1500/month. This property will slay.
How did you find this deal and how did you negotiate it?
My real estate agent and I pounced on it immediately upon its listing. We also were sure to put in an escalation clause in order to beat out other bidders. We maxed our our escalation, but won the property.
How did you finance this deal?
Conventional investment loan with 25% down.
How did you add value to the deal?
Probably purchased a total of around $2,000 worth of furnishings for the Airbnb side. We also added a dishwasher, garbage disposal, and washer and dryer.
What was the outcome?
So far, so good! I don't live in the area anymore, but have an excellent network of people--a great manager, and great cleaning personnel.
Lessons learned? Challenges?
Sometimes you just have to keep pushing through the mess of the world. The world isn't going to stop for you, so you can't stop for it either.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Real estate agent: Colleen Carr
Property manager: Steven Leopold
