Duplex to House Hack and Duplex Zoned Vacant Land to Build On
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $271,000
Cash invested: $18,000
This purchase included a 3400 sqft duplex and a piece of vacant land next door that is zoned for another duplex right in the heart of Oklahoma City. We plan to build on that land, but for now we are house hacking the duplex and will wait until we move out to build on it. For now we are enjoying a huge backyard as the piece of land is enclosed with our side of the duplex's yard!
What made you interested in investing in this type of deal?
We always liked the idea of living in a duplex, but couldn't find one that was big enough or updated enough for us to live in. The duplex next door burnt down, so because of smoke damage, this duplex was completely gutted and redone. Additionally, the fact that we acquired the land next door which gave us a huge backyard (around 5/8 acre) was something we couldn't resist.
How did you find this deal and how did you negotiate it?
We found this through direct mail. Initially the owner wanted way too much so I walked away from the deal. Two weeks later he came back wanting $40k less because he was ready to get it off of his hands. That is when we started negotiating and came to an agreement.
How did you finance this deal?
Conventional Loan
How did you add value to the deal?
The tenant next door had been paying the same rent for 8 years, so we made some updates for her and she happily agreed to pay a higher rent. When she moves out, we plan to update that side a bit more.
What was the outcome?
Over 80% of our mortgage is paid for, we have a huge piece of land that we can either sell or build on in the future, and we have a huge backyard that we love!