My First Rental Deal

5 Replies

Investment Info:

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

Purchase price: $90
Cash invested: $15

Bought this duplex at auction for 90k. ARV was 250k! after 6 months I refinanced and took out 175k at 3.7%. Profited over 50k and cashflow 1200 a month!

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

Income producing

How did you find this deal and how did you negotiate it?

For-closure Auction

How did you finance this deal?

Cash

How did you add value to the deal?

Rehabbed

What was the outcome?

Bought this duplex at auction for 90k. ARV was 250k! after 6 months I refinanced and took out 175k at 3.7%. Profited over 50k and cashflow 1200 a month!

Thank you @Francis Nguyen

I wasnt expecting it to appraise that high, my estimates were closer 175k compared to friends of mine who had duplexes in the area, but it turns out, it being a corner house and over 2000sqft played a large role. Insurances said rebuild costs were over 800k (Which is absurd, its nowhere near that much, maybe 250k) Its also in a better section of the area.  And just paint really, the previous tenants kept good care of it. a few month after the fact I had to put 6k in roof issues, but other that, initially it was just paint and minor repairs.

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