First multi family purchase
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Lubbock.
Purchase price: $55,000
Contributors:
Brett Forbes
Cute little duplex that will be bringing in $1300/mth gross rent.
What made you interested in investing in this type of deal?
We are always looking for good deals with rents that makes sense. At this purchase price and the estimated gross rent it was a no-brainer. One side of the duplex has a tenant and the vacant side needs very limited rehab to bring it up to standards.
How did you find this deal and how did you negotiate it?
It was presented to us by our local agent in Lubbock. He negotiated on our behalf with the seller’s agent.
How did you finance this deal?
Private money cash loan. We expect to refi and pull out cash using BRRR method and hopefully be able to purchase one more property before 2019 ends.
How did you add value to the deal?
We are rehabbing the vacant side with some “lipstick”. Cleaning up cabinets with paint, painting all rooms, installing new appliances and that’s it.
What was the outcome?
We closed on this property 10/6/19. We have the vacant side almost ready to go.
Lessons learned? Challenges?
As of now all is well. There may be a chance that the current renter is moving out, which might leave both sides vacant. We are confident that with our property manager in place we will get two great tenants moved in soon.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes; Travis Hanson. He is awesome.