Turnkey Dutchtown Duplex

4 Replies

Investment Info:

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

Purchase price: $120,000
Cash invested: $33,915

Turnkey duplex in Dutchtown, STL, MO.

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

I have other properties in Dutchtown and this one offered great cash flow out the gate.

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

Straight off the MLS.

How did you finance this deal?

Commercial loan which allowed LLC vesting. 25% down. 30 year fixed 4.75%.

How did you add value to the deal?

Upon inspection we discovered that both HVACs were 20+ years old with a few other minor pieces of deferred maintenance. We knew the seller was under contract for a larger apartment complex and desperately needed this deal to close in time.  We were able to negotiate the price down to $120,000 and have seller replace both HVACs + provide lien waivers and paid invoices. My inspector is the man. He called the installer personally to send photos and verify the work.

What was the outcome?

We were very happy where we landed on price. Closed for $120,000 with a $90,000 loan at 4.75%. We collect $1,344 in rent currently.

Lessons learned? Challenges?

Never trust and ALWAYS verify. The listing agent marketed this as totally turnkey so nobody would have expected a pilot which barely lit during a brutal winter.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I cannot imagine working with a better inspector than Norm from Sage Inspections. They don't make 'em like him anymore! A true professional.

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