Fort Worth Duplex buy and hold
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Fort Worth.
Purchase price: $230,000
Cash invested: $75,000
I used the proceeds from the sale of a 448 sq ft studio I purchased in 2006 to buy two full duplexes- quite a trade up! My REA helped find this pocket listing before it went to the MLS and the transaction was very smooth. Though I wasn't very excited at first because the numbers and CAP weren't great, it has turned out to be a good buy and taught me a lot. It is a well built duplex and only 12 years old; capex will hopefully be low with no surprise big ticket expenses.
What made you interested in investing in this type of deal?
I wanted to buy my first multi; 2 rent checks for only one mortgage!
How did you find this deal and how did you negotiate it?
REA pocket listing. It was 'take it or leave it' and the numbers looked good so I pulled the trigger. The appraisal came in at $15K over purchase price which was reassuring.
How did you finance this deal?
75/25 Conventional loan for investment property. I used the proceeds of a 1031 for the down payment.
How did you add value to the deal?
Both units needed some upgrading to get top dollar rents so I put in granite counters and vinyl plank flooring as I plan to be in the deal long term and these upgrades will pay me back year after year.
What was the outcome?
Well performing duplex with great tenants and premium rents.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Trevor Dyck