1st Duplex invested in Old Brooklyn area of Cleveland

7 Replies

Investment Info:

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

Purchase price: $62,000
Cash invested: $8,000

We bought this duplex from a wholesaler. it was listed at 68,500 and negotiated it down to 62k. We inherited a tenant in the down unit that didnt need any work. The up unit needs about 15k of work that we are currently working on to get it rent ready. It should be ready to go in about 6 weeks and we will cash flow around $200 per door after refinance. We used two private investors for a 6 % fee, balloon payment upon refinance. So, this was a no money down deal. We are splitting rehab costs with our partner, but it should be a perfect BRRRR and we should retrieve all of our capital on refi.

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

We started investing with a single family, and wanted to try the "Stack" method for more cashflow. I.E. single family, then duplex, then quad, etc....

Originally posted by @Jon Dittrich :

Investment Info:

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

Purchase price: $62,000
Cash invested: $8,000

We bought this duplex from a wholesaler. it was listed at 68,500 and negotiated it down to 62k. We inherited a tenant in the down unit that didnt need any work. The up unit needs about 15k of work that we are currently working on to get it rent ready. It should be ready to go in about 6 weeks and we will cash flow around $200 per door after refinance. We used two private investors for a 6 % fee, balloon payment upon refinance. So, this was a no money down deal. We are splitting rehab costs with our partner, but it should be a perfect BRRRR and we should retrieve all of our capital on refi.

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

We started investing with a single family, and wanted to try the "Stack" method for more cashflow. I.E. single family, then duplex, then quad, etc....

 Congratulations! 

Congrats on your new purchase! That was how I did my last duplex (looking to move out now and on to the next). I would love to do another one, but they are pricy here now. I don't have the patience to wait for the right one to come along at this point in my life. However, I do love the cashflow I receive in the duplex compared to what I get in the SFH. I would definitely encourage you to continue down that road if you can swing it.

Hey @Jon Dittrich . Congrats on a great deal! What are your thoughts as you progress through the  stack? Are you glad you started with SF for the learning experience or would you start with the duplex if you had to do it over (maybe too soon to tell)?

Originally posted by @Jon Dittrich :

Investment Info:

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

Purchase price: $62,000
Cash invested: $8,000

We bought this duplex from a wholesaler. it was listed at 68,500 and negotiated it down to 62k. We inherited a tenant in the down unit that didnt need any work. The up unit needs about 15k of work that we are currently working on to get it rent ready. It should be ready to go in about 6 weeks and we will cash flow around $200 per door after refinance. We used two private investors for a 6 % fee, balloon payment upon refinance. So, this was a no money down deal. We are splitting rehab costs with our partner, but it should be a perfect BRRRR and we should retrieve all of our capital on refi.

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

We started investing with a single family, and wanted to try the "Stack" method for more cashflow. I.E. single family, then duplex, then quad, etc....

 Sounds like you got yourself a damn good deal. Don't usually see duplexes in Old Brooklyn going for under $75k-$85k these days.

@Pamela Villa I’m thinking I would have been fine starting with a duplex. We were anxious to get started and the single family was the cheapest, most attainable way of getting started. And we’ve definitely learned a lot about property management and the construction process on that property. I’m glad we bought that house, because it got us going....but I definitely feel like if you have the ability to get a duplex first, I would.

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