Chattanooga Duplex Under Contract

[Wesley Thompson]

Investment Info:

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

Purchase price: $110,000
Cash invested: $35,000

UNDER CONTRACT - 1st True Blue Investment Property

Tenant occupied duplex with each unit currently renting for $650/mo. Property does need renovations and working through DD on the cost of renovations and realistic market rent for the area once renovations are complete. Plan to refi out of the property between 12-36 months.

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

Good experience on a tenant occupied cash flowing property.

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

Property found on the MLS and was listed at $130,000. Contacted my agent about interest and she reached out the listing agent. Property was recently under contract at $130,000 but sellers backed out after inspection. Property was about to be re-listed at $115,000. I offered $110,000 and the offer was accepted. Seller provided inspection report already completed saving the cost.

How did you finance this deal?

Conventional

How did you add value to the deal?

Planning to add value with attention to foundation issues, roof replacement, and interior renovations when units are vacant.

What was the outcome?

TBD

Lessons learned? Challenges?

Investing from overseas and getting Power Of Attorney done for someone to handle closing of the property
Not being able to be present physically for walkthroughs or inspections - have to trust the team!
Estoppel Certificate - will become a critical component of deals moving forward
Was planning a buy and hold, then a BRRRR, will likely become a hybrid of sorts IF the deal closes

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

Agent - Adrienne Green with Keller Williams
Lender - Gabe Whitmer with First Bank
PM- Ashley Cross with Whitewater Property Management
GC - will update
REI Concierge - Coaching, Mentorship, Networking
Active Duty Passive Income - Education and networking

[Sam Wilson]

@Wesley Thompson -  Thanks for taking the time to share all of that!

My wife is from the middle Tennessee area.  We love it there!  She still has a lot of extended family in Chattanooga; she and her siblings and her mom were all born at Erlanger!  

My brother was an Airforce officer and his last job was ROTC at Purdue.  He too chose that in order to be closer to family.

Think that the coffee business is just a great niche and cool way to brand yourself.  My wife feels the same way about owning a laundromat!

Please report back when your project is completed!  I'd love to hear how the numbers worked out.