Small multi-family (2-4 units) private money loan investment in Mc Kees Rocks.
Purchase price: $125,000
Occupied duplex purchased with private $ at 8%. Will hold with private money for ~1yr. Will perform minor cosmetic updates, increase rents. Refi into an FHA loan and house hack again.
What made you interested in investing in this type of deal?
My private lender actually sent it to me. Great opportunity to owner occupy with another FHA loan. Using the same HELOC from my first deal.
How did you find this deal and how did you negotiate it?
Listed on the MLS. AP $149K Our first offer $115k all cash home/sewer line inspection, seller countered $132K no inspection w/home warranty. We countered $125K home/sewer line inspection. Sellers agreed! ~17% discount
How did you finance this deal?
Private money (dad) recycling the money from the last duplex purchased with his HELOC on primary residence. Will refinance into an FHA loan.
How did you add value to the deal?
Will increase rent to market in one unit. Will occupy the other unit and rent out the other to coverage mortgage. Minor cosmetic repairs to update units. Rent was marketed at $690 and $750, when the actually leases were for $797 and $750.
What was the outcome?
Due to close the day after my 31st birthday!
Lessons learned? Challenges?
Stick to your buying criteria. Sellers didn't want to allow inspections initially, which was fine as we were ready to walk away.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Worked with my trusted team realtor John Gates, Lender (dad) John, home inspector William Signori
Congrats Javonn! Keep doing what you're doing. Sounds like a great property. I hope it makes you a lot of money. Best of luck!
Congrats on this investment @Javonn Musgrove !
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