Closing my first rental property at the end of this month!

[Dan Manion]

Investment Info:

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

Purchase price: $150,000
Cash invested: $10,000

Found a duplex about 2.5 hours from where I currently live in Minnesota. The rents should be around ~1900-2100/mo when fully occupied. There's potential for a basement unit, but that's not something I'm considering currently. I'm focused on making sure the foundation stuff gets fixed for the long-term (excavation on the outside and doing the work to prevent the water from getting in) before considering anything in the basement.

All comps I had around the area were between 180,000 and 200,000

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

I wanted to start real estate investing

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

I found this on the MLS and negotiated through a realtor. The roof needs to be replaced within about 1 year or so. There was also a large stair stepping crack on the foundation with a small bow. Had a basement company check it out during the inspection period, give me a quote for installing braces + excavation. The seller and I agreed on the company to fix it and bracing portion of the fix will be paid for by the seller before closing.

How did you finance this deal?

Conventional mortgage for an investment property

[Brittany Kuschel]

Awesome news @Dan Manion! Congratulations on the acquisition!!! We love the diversity of investing in the Duluth area. 

Reach out if you ever need help finding contractors or good contacts to assist with repairs/renovations. 

Do you mind sharing who you plan to have manage the property? I'm curious to know who is doing a good job on the communications front serving out of town investors and I always appreciate learning more about how the local PMs are working to improve service for the out of town landlords as this represents a healthy percentage of our client base.