Updated over 3 years ago on .
Duplex purchased in Cordova,IL.
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $40,000
Cash invested: $30,000
Purchased a depleted duplex. Installed new heating with central air. New water heaters. Remodeled kitchen on one side. Otherwise new paint and stripped and stained the floors. All new doors throughout. Most work done by wife and I. Current value is around 140,000.
What made you interested in investing in this type of deal?
We just wanted to see if we could do it mostly. Its been quite the chore. Many mistakes along the way. If we knew then what we know now. We would be much better off.
How did you find this deal and how did you negotiate it?
It was on the MLS. I think it was listed for like 59,900. We looked at it once and I told the Realtor our offer was 40,000. Realtor didnt want to go back with that offer. I didnt budge. The person selling the property took my offer without a counteroffer. Purchase and refurb total 70,000.
How did you finance this deal?
Paid cash for house. Borrowed money for refurb.
How did you add value to the deal?
Not sure what you are looking for here.
What was the outcome?
We still own the property. Intend to keep it for awhile.
Lessons learned? Challenges?
Should have purchased property differently. Probably should have done the BRRRR method. Challenges is mainly collecting rent from tenants. Here lately that has been an issue.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I will have to say the lender we have used here lately is Midwest Bank. We work with the branch in Moline, IL. Loan officer is Tim Martig.