Small multi-family (2-4 units) buy & hold investment.
Purchase price: $167,900
Sale price: $319,000
Bought the property with minimal down as a primary residence. Lived there for two years then moved out and kept it as a rental.
What made you interested in investing in this type of deal?
A great way to acquire investment properties over time is to buy and hold while you slowly move up in better properties. Owner occupy a fourplex first, then buy and move into a duplex, then maybe an even nicer duplex, then a single family home. You now own four properties all purchase as primary residences.
How did you finance this deal?
5% down owner occupied purchase. Would have been great for FHA but I had just bought a duplex using FHA eight months earlier.
How did you add value to the deal?
All the value was just added over time. The great part about buying and holding.
What was the outcome?
Sold property in 2017 for about $150,000 in profit. Plus the equity my tenants paid for.
Lessons learned? Challenges?
Personally, I will not buy a property in a flood plain again. The insurance started at $900 a year and when I went to sell it they were charging $3,300 a year.
Thanks for sharing. It sounds like you rocked it with this one. The appreciation was great.
That flood plain can be a killer. Especially when there are some mean hurricanes bearing down in your area!
Good luck on your real estate journey!
How long did you hold / what year did you buy?
Good stuff @Shawn Muncy - thanks for sharing. Would be interested to hear what area of town this was in
A client of mine has found success putting her duplex on Airbnb for a minimum of 30 days allowing her to negate the required STR permit. She's rented out to corporate transplants over the past two years and in a 7 month period she made a years worth of rent.
Pretty neat strategy not many investors have experience in.
I bought in 1999, so that was over 18 years. The property was in Oak Hill. Right inside the "Y" off Scenic Brook.
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