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!
@Qui Chau- Love to see it! Hands down agree with working with an investor focused real estate agent, a definite game changer.
@Qui Chau awesome numbers--congrats!
I'm curious--where did you find a duplex for 84k? (it says you're in Austin, but $84k sounds like an impossibly low purchase price for Austin...though, I'm not an expert on that market).
What grade was the property before your reno, and what grade is it now? ...also, what grade is the neighborhood?
Thanks!
@Qui Chau congrats on a great deal! Can you share what you did to "bullet proof" the property? Thank you for sharing.
Quote from @Leo R.:
@Qui Chau awesome numbers--congrats!
I'm curious--where did you find a duplex for 84k? (it says you're in Austin, but $84k sounds like an impossibly low purchase price for Austin...though, I'm not an expert on that market).
What grade was the property before your reno, and what grade is it now? ...also, what grade is the neighborhood?
Thanks!
@Leo R. It's not in the Austin, TX market. Grade of property prior to reno was decent (approx C+/B-). Currently at B grade or so. Neighborhood is B-.
@Qui Chau congrats on a great deal! Can you share what you did to "bullet proof" the property? Thank you for sharing.
Thanks, I did not catch in the original post that you are selling a mentor course. Sorry for the question as I did not realize it was an ad for your course.
@Qui Chau nothing you're doing is "secret". You disgust me coming onto a free site sneaking around trying to sell your mentor course. Get off of here!
Quote from @Jordan Moorhead:
@Qui Chau nothing you're doing is "secret". You disgust me coming onto a free site sneaking around trying to sell your mentor course. Get off of here!
Lol, I'm not trying to sell anything here. I've taken my time to answer the questions posted here, although it might not be everything you wanted. Certainly not going to give everything away I've learned over 2 decades of investing. Do you think the business coaches out there do that? Come on!
Before you chastise someone, you may be wise to think before you speak. Good luck to your sir.
Quote from @Andrew Olmstead:Not an ad for mentorship. I'm sorry if it was construed that way. Just that I reserve some of my systems I've built for anyone that decides to take me on as a mentor and partner deals. Cheers!
@Qui Chau congrats on a great deal! Can you share what you did to "bullet proof" the property? Thank you for sharing.
Thanks, I did not catch in the original post that you are selling a mentor course. Sorry for the question as I did not realize it was an ad for your course.
@Qui Chau how many properties do you currently own? Just curious.