Small multi-family (2-4 units) buy & hold investment.
Purchase price: $132,000
Cash invested: $40,000
Sale price: $139,000
I just purchased my first rental property - a duplex in the heart of Midtown Harrisburg. The bottom unit is a one bedroom with a long term tenant renting for $675, plus he takes care of snow removal. The top unit is a two bedroom that I am renting to a young couple for $900. Should net around $300/mo after accounting for all expenses, vacancies, property mgmt, maintenance and repairs. Excited to get my first deal done.
What made you interested in investing in this type of deal?
I have had the real estate bug for a while. As I am investing from out of state, I wanted to make sure the area in which I purchased would be more desirable, so I could ensure a decent tenant pool and make it less likely for disputes to arise.
How did you find this deal and how did you negotiate it?
My agent located it and we moved quickly.
How did you finance this deal?
Convential 30 year mortgage.
How did you add value to the deal?
I am planning to open up a wall and add laundry to the upstairs unit, which I think will increase the rental potential by $300/mo.
What was the outcome?
We shall see!
Thanks, David. It took me longer to do than I wanted it to, but glad I did it!
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