Duplex cash coooowww! Many lessons learned.
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $84,500
Cash invested: $3,200
Duplex, 1/1 and 2/1. First MF investment property. Started with Section 8 tenants in both units. Learned it was not a good fit for me due to delinquencies and lack of care and pride of renting. Cleared them out and renovated property to "bullet proof" condition. Long term rental on 1/1 and STR on 2/1. ZERO vacancies. Net cash flow of $1,800/mth. Paid off in 15 years. Will 1031 once appreciation schedule is exhausted.
What made you interested in investing in this type of deal?
Interested in cash floowing property located in a great neighborhood and close to amenities and conveniences.
How did you find this deal and how did you negotiate it?
Found this through one of my web clients who was a funeral home owner. These are great leads BTW to find great estate deals.
How did you finance this deal?
15 yr mortgage
How did you add value to the deal?
Renovations and bullet proofing it. Zero vacancies.
What was the outcome?
One of my cash cows in my portfolio. Paid off in 15 years with minimal down payment for this deal. "Mailbox money"!!!
Lessons learned? Challenges?
Was originally sold on Section 8 tenants as "guaranteed income". Yes on the guaranteed income but pride of rentership was not there. Tenants trashed the property. Kicked them out, renovated and updated property and greatly improved my tenant screening process. This lead to 300% return with minimal headaches. Still driving market rent in my market for this property ;-)
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I bought this property on my own. Learned a lot. Always rely on the local real estate market Realtor who is also an investor for your investments!
