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Geoffrey Serdar
  • Real Estate Agent
  • Minneapolis, MN
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Our first duplex acquisition - Minneapolis

Geoffrey Serdar
  • Real Estate Agent
  • Minneapolis, MN
Posted Feb 22 2016, 22:53

My First Duplex - Winter 2016

Any feedback, advice, stories, or jokes are well appreciated...

Hello, my name is Geoffrey Serdar, intro post located here.  I am closing on my first duplex acquisition in a few weeks.

The first duplex, listing here,  is in the Near North neighborhood of Minneapolis, or, as most would call it, the southern part of North Minneapolis.

  • Negotiated Purchase Price: 
    • $149,000 
  • Seller contributions towards buyer's closing costs:
    • $4410.00
  • Taxes
    • $4,359.00
  • 3 bed/1 bath/unit
  • 2,964 total finished sqft
  • 1913 built
  • Many electrical updates
  • Separate Furnaces
  • Separately Metered
  • Separate Water Heters
  • Lot's of new windows
  • New Roof

Property is a foreclosure, listed by Fannie Mae.  I visited the property on numerous occassions as soon as it came on market, a few days before Christmas Eve, I then submitted my offer on Christmas eve - late (around 11pm), I proceeded to negotiate on Christmas.  Best Christmas present I've ever received, and I still didn't get the deal done.  The negotiations was the only present I needed in 2015.  7 counters back and forth, Fannie Mae barely moves the first few days and every counter takes at least a day, Fannie Mae doesn't move quickly, and they barely gave into any of my negotiations.  To help my negotiations I paid for an overly-time-consuming homeowners course that took me three hours to complete, I wanted/needed to pay less than asking, I wanted Seller Contributions, and thus I did everything I could to get as much off as possible.  A list price of $151,900 - Purchase Price of $149,000 - $4,410 in contributions = a lot of money to me, that's an entire $7,310 I won't have to spend, yes I know that's pennies to some of you long money guys, but this is my first duplex and I'm very proud of that savings.

I purchased the property on a 203kFHA mortgage so I could roll into my rehab into the purchase.  Updating projects include:

  • 2 x new kitchens
    • 2 new sets of appliances including plumbing for dishwashers (didn't have dishwashers)
  • Building out washer/dryer laundry rooms off the kitchen, so tenants will have separate systems
  • All basement windows will be replaced with glass block that can open (for venting)
  • I'm tearing out all the gross drywall and crap in basement and starting fresh
  • Updating bathrooms
    • Installing Glass Block in the bathroom windows
  • Fixing a few windows
  • Paint the whole damn thing inside and out
  • Ripping off (and capping) the unused crumbling chimney
  • Water management
    • Gutters installed with drain pipes so I get the water away from the perimeter
  • Ripping out the carpet and refinishing the original hardwood - everywhere (if it's salvable)
  • I am rebuilding a stairway making it safer
  • A few other projects

Total price after all Rehab/Fees is approximately $210,000

I don't know what my rentals will be, I am going to begin marketing it @ $1,500.00/unit I believe I will be able to lease there, or at the lowest $1,300.00/unit (as is market values on craigslist and other sources)

The neighborhood is considered the good part of the rough area, lower owner-occupant, lot's of section 8 in surrounding areas.  This duplex is next to a Baptist Church, which I believe is a positive.

I'm very excited with this acquisition and believe I have the right mentality for land-lording.  I believe I am putting the updates into the right areas to achieve quality tenants, to secure high rental amounts, and to keep property mostly maintenance free.

What are your thoughts?  Any pointers?

Geoffrey Serdar (The phonetic pronunciation of my name is JAh`free SIR-Dar)

 (hello.)

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