2 Duplexes- First Multifamily purchases

[Anthony Hummel]

Investment Info:

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

Purchase price: $287,500
Cash invested: $85,000

2 duplex's, 2 bed 1 bath ea. 100% occupancy. Bringing up to market rents starting in September, expected cashflow $1000 a month.

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

-Two Units- for 1 loan, under market rents, stable area with good schools, recently renovated with new mechanicals, roof, paint....

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

MLS- Negotiating almost caused me to miss out. Ended up trying to buy low and they others entered the picture. Realitor asked for best offers on Friday, So I gave a strong offer based on market rent potential and got it.

How did you finance this deal?

Conventional loan for each building. They had separate deeds. Missed that in my figures, so closing costs were higher than I planned.

How did you add value to the deal?

The appraisal came back with @ $40k in equity.

What was the outcome?

Closed a week ago. First lease coming up next month. Raising rents towards market.

Lessons learned? Challenges?

I wanted 1 loan on the four units, but the buildings were separately deeded.
Current Challenge, 2 units already calling in service calls for A/C. Unit are only 4 years old. Waiting on my tech's findings.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Local agent that is a friend of the family. Cardinal Financial has done my last 4 loans. Easy to work with and understands investment buying.