My First Property (duplex)

6 Replies

Investment Info:

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

Purchase price: $149,000
Cash invested: $30,000

Built in 1876. All brick and side by side duplex with 3 bedrooms and 1 bath in each unit, full basement, and spacious backyards

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

Port Jervis, NY is a town that is going through a renaissance with more businesses and developments happening. It is strategically located close to New Jersey and Pennsylvania.

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

My agent found this deal via the MLS and the agent negotiated it down to $149,000 from $179,000.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

I added new appliances to both units and completely renovated one of the units.

What was the outcome?

I currently have one unit rented for $1375 and the other unit is being placed on the market to be rented.

Lessons learned? Challenges?

The process to purchase this property took 9 months to close. After we closed, one tenant refused to pay rent and ended up vacating the unit in June. The other tenant paid rent for April & May and ended up abandoning the unit in June as well. I've learned that people sell problems and it is our duty to figure out solutions to those problems in order to be successful investors. Prepare for the unexpected at all times. It will happen when you least expect it.

Thank you for sharing this!  What was the down payment and how did you finance it?  What and how much were the fees?  What were the renovations and how did you finance them?

@Lee Burns - Your welcome! The down payment was 20% and it was financed by cash on hand. Some of the fees involved were title fees ~$3,000. & attorney fees ~$1,000. Some renovations were interior painting and new cabinetry ~ $3,000, aside from the new appliances. I financed it through a loan from a friend.

Originally posted by @Jonathan Martinez :

Investment Info:

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

Purchase price: $149,000
Cash invested: $30,000

I used to live in queens now I’m in Poughkeepsie up the metro north. I have a duplex in Newburgh as it’s also an old industrial city coming up. It’s right off the Metro North (Poughkeepsie line, Beacon Stop). I had a feeling since port Jervis is also on the metro north (NJ Transit) it would also be up and coming. Great summary of your deal thanks for sharing and nice to see a fellow New Yorker on the forums.

 

@Ray A Delfi - Nice! I was initially looking into Poughkeepie when I first started but it's very competitive. I've also been seeing a lot of activity in Newburgh. Are you in the city or the town? I hear they are both VERY different markets? Likewise! It's always very refreshing. 

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