Small multi-family (2-4 units) buy & hold investment.
Purchase price: $61,500
Cash invested: $63,500
Duplex as a first investment property.
What made you interested in investing in this type of deal?
Looking for cash flowing buy and hold real estate that will supplement retirement income.
How did you find this deal and how did you negotiate it?
Found on MLS and worked with a real estate agent. He was very helpful.
How did you finance this deal?
Cash using a SDIRA.
What was the outcome?
So far so good. Inherited tenants seem to be very good. I have also talked with the former property manager and he has been quite helpful in getting started.
Lessons learned? Challenges?
Be sure to check cost of utilities etc. and not relay on what is given in the MLS listing. ROI will be less than anticipated but still acceptable and it has good cash flow.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Mike Szustak from Lewith and Freeman was my buying agent.
Congratulations @Scott Pearson . Out of curiosity, what does "SDIRA" stands for ? ( I don't recognize the acronym, sorry)
Self Directed IRA.
Great job @Scott Pearson
Are you able to share your income/expense numbers? I am looking at rentals in that $60k-$100k range and would love to swap data.
Congratulations @Scott Pearson .
If you want any more information about SDIRA's check out this book. it has a wealth of information on how to expand your
The Self Directed IRA Handbook: An Authoritative Guide for Self Directed Retirement Plan Investors and Their Advisors
by Mat Sorensen
@Scott Rogers I’m still try to get a handle on the expenses. The gas I know was in the mls listing for around $1300. Reviewing the gas bills for the last 12 months it was really $1773 total. This is one example.
Rents are 595 and 695. The higher rent includes use of the garage. Tenants only pay electric as the gas and water are not separated.
@Scott Pearson Yes, that is the hardest part of the game. Gathering un-biased and accurate information related to rent history, expenses and demographics. A lot of the sites and individuals are motivated to sell the property so they can't be un-biased. You have to do your own legwork to confirm that your deal is really a deal. Try to find impartial parties like property managers and other investors who own similar properties in the same area.
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