A few months ago I let everyone know that I closed my first duplex in Grand Rapids MI. they wanted 145k for it and I ended up getting it for $135,051. I had problems with the top tenant so after awhile we evicted them. They were paying $650\month. I replaced carpeting and painted the whole 2 bed 1 bath unit. CLeaned the entire place.
My goal was to get 1200/month out of the unit. no one thought it was a good idea and didn’t think it was possible. As of last week Friday I was able to get my $1200 goal. Awesome!
Now my bottom unit tenants will be moving out here shortly. They are paying $850. Same plan except I will get $1300\ month. Steep goal but now I know the process now. Anyways my first duplex will bring in a gross of $2500\month with expenses being around $800. I’m having a lot of fun and learning what a lot of you guys already have been through! Any more tips or tricks? I’m here to learn and take action, thanks.
@Lakota Tidd Who didn't think you couldn't get 1200 on a duplex. I actually think thats low unless your are in Oakhill
cemetery or Black Hills.
Oh I misread the post. Where is the duplex
Lakota that’s awesome!!!! I am over here in Muskegon and in the process of locating a duplex myself. I have worked out the numbers on a property and feel good. Hearing of your success in Grand Rapids just added some fuel to get this done!
@Charles Kao yes I meant $1200 on one of the units. My duplex is located on Lafayette NE Grand Rapids. Up by the corner of Matilda
@TJ Patton I have heard that certain parts of Muskegon are doing very well for rentals! Booming down there. Keep me posted! I have learned a lot with my first one.
Nice job @Lakota Tidd!
My wife and I bought our first house/duplex last year and it has been a long time coming to where we are now. We're also in GR and our tenants are moving in this weekend @ $1,650 for a 3br/1.5ba.
It's located on Orchard Hill St. SE right in Eastown and the only way we were able to afford it is bc we purchased from family. This duplex was owned by my grandparents for 25 years - it was where we had Christmas and Thanksgiving etc.. and when they passed away (existing mortgage still in place) I approached my mom who was placed as executor of the trust with a tongue-in-cheek offer.
"We're looking for a duplex to buy anyway, we can afford roughly $235,000... so why don't we buy the family duplex, extinguish the mortgage so nobody has to deal with it, you and your sisters get a nice check and keep the house in the family at the same time!"
She had to discuss it with her two sisters but eventually it became a reality. The only way we were able to pull this off was because of a little known fact that (at least in Michigan) when buying from family you can use the equity that may be in the home as a gifted down payment. We were able to use conventional financing, avoiding PMI, putting nothing down. We owe $188k and the duplex appraised at $265k!
@Lakota Tidd They are. We actually have a client selling off a portfolio of 31 SFH and duplexes in Muskegon and West Michigan in general. If you are interested let me know.
@Ezekiel Mojica wow what a great story! Way to start and end up getting a great deal. I wish you success and keep getting more places!
Congrats Lakota! I am in Grand Rapids and looking for another rental to purchase. I have been debating about multi-family or single family. I see alot of multi-family units sitting, which i know they are harder to sell. Was there any bid competition you had with the seller or other offers? Also - how much of an improvement did you make to the unit from getting $650 to now the $1200? Would love to hear what the costs were and what you did to the place or what you think you will have to do to the next unit.