Small multi-family (2-4 units) buy & hold investment in Dallas.
Cash invested: $17,000
Positive cashflowing duplex in the city of Dallas, TX.
What made you interested in investing in this type of deal?
Decided to settle in Dallas, TX and I wanted a property to at least breakeven or positively cashflow while I lived there and certainly cashflow once I move out. Properties with the potential to add value and enjoy forced appreciation was also a consideration.
How did you find this deal and how did you negotiate it?
It took nearly 6 months for me to learn how to navigate the hot Dallas, TX market to find this deal. Many properties were overpriced, in poorly performing neighborhoods, or had very undesirable characteristics impacting the deal. I submitted several offers on less stellar properties before finding this one, which happened to be in a better neighborhood and had better market rents than most other multifamily homes in the greater DFW area.
How did you finance this deal?
FHA for the loan; cash for renovation.
How did you add value to the deal?
Bringing the property out of the 1990's into the new century. Opportunity to add a second master with en suite to each side by using existing unfinished space.
What was the outcome?
This property was already is good condition and needed updates for flooring, paint and fixtures to be rental ready. As time progresses, will update less significant items such as cabinet hardware and countertops, shower installs and bathroom fixtures.
Lessons learned? Challenges?
This was a straightforward deal that hinged upon a purchase price being under the appraised value. Soil settlement caused foundation movement and cracking which took about a week to repair between foundation company, carpenters and painters.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
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