Investment Info:
Small multi-family (2-4 units) buy & hold investment in Harker Heights.
Purchase price: $390,000
Cash invested: $118,000
It's a brand new 3B, 2B duplex.
What made you interested in investing in this type of deal?
I wanted to enter into multi-family. When I anaylized the deal in BP it showcases well. It shows it will be making me about 20k a year in about 10 years.
How did you find this deal and how did you negotiate it?
We got the price slightly lowered, seller covered closing costs and did a buy down on my interest.
How did you finance this deal?
I came in with 25% cash down and did a 30 year fixed rate. My other duplex I also put down 25% down however rates had gone up a bit when it came time to close so went 30 fixes DSCR loan so my numbers would still work.
How did you add value to the deal?
I learned more about this in listening to BP but purchased this brand new so no value add on this one. I am now looking to purchase a value add property in that same area hoping to set myself up well for a cash out refi down the road.
What was the outcome?
I've got great tenants in there.
Lessons learned? Challenges?
I'm managing this myself at the present time so I certainly had some hop jumping I've been doing getting things fixed with the builder, blinds installed and more. I'm going in it to learn right now so welcoming the challanges.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, I've got a rock star agent in the Harker Heights Texas area: Morgan Jones-Cooley.
