Knoxville Duplex - Buy and Hold
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Knoxville.
Purchase price: $120,000
Cash invested: $10,000
This was a Duplex that has one legacy tenant and one new tenant we sourced. This house needs a bit of a renovation but we are going to let it cash flow as is until we have tenant turnover.
What made you interested in investing in this type of deal?
We want to build a large portfolio of single family buy & holds that cash flow and the fact this was a duplex helped increase the cash flow. These SFR/Duplex properties are always easy to offload so they will be great cash injections to our business in the future.
How did you find this deal and how did you negotiate it?
We had a family friend contact us that was looking to retire and get out of the rental business. We told them we would definitely be interested after a quick review of the property. With us knowing each other and the dsire to exit rental landlording the negotiation landed at a below market value price.
How did you finance this deal?
We used Seller Financing with $10,000 down and 6% interest rate.
How did you add value to the deal?
We altered tenant leases to re-allocate expenses and repaired some deferred maintenance the property had building up.