Small multi-family (2-4 units) buy & hold investment in Phoenix.
Purchase price: $215,000
Cash invested: $65,000
A duplex was brought to me by my handy dandy realtor from a pocket listing (not for sale yet, just about to hit the market and my realtor knew the details before it was even listed)
What made you interested in investing in this type of deal?
I wanted a legit rental property. Not house hack or anything but a real deal investment. And this duplex was too good of a deal.
How did you find this deal and how did you negotiate it?
My handy dandy realtor called me up and told me about an agent on his team wanting to sell her duplex.
How did you finance this deal?
purchase price was 215k, appraised for 250k and we needed to put down 25% on the 215k purchase price
How did you add value to the deal?
house was renting out both sides for $975 each. Mortgage is $920 PITI per month. Each unit is a 3 bedroom 1 bathroom house so looking up comps easily showed we could rent it out for 1100-1300. One tenant moved out, we remodeled that unit and moved the renter that was staying into the fresh unit which allowed us to remodel the other unit. RIght now we're getting the final touches done, will rent it out, refinance once we hit 6 mo(title seasoning) and look for the next!
Congratulations on your first successful BRRRR! An investor friend and myself are also looking to buy our first BRRRR in the Valley. What cash flow are you looking at once you get your 2nd unit rehabbed and rented out?
@John Bradley What area was this in?
This was off of the 10 and university by the university of phoenix building/airport area 👍 one of my realtors agents on his team was selling it so he called me up for the pocket listing.
Thank you! So we're mid refi right now and the loyal tenants rents are only 1100, the other unit is 1350 per month.
With the original rate being 4.125 and now at 2.75 (I'm a mortgage banker so the employee discount helps) the property appraised for 288k so we're pulling 40k back out and the mortgage is only 950 PITI 🤙🤘
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