2 buy and hold duplexes purchased for my out of state buyer

[Johnathan Trimble]

Investment Info:

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

Purchase price: $643,000
Cash invested: $5,000

These two 1998 duplexes were bought in a city that is about to see increased demand with the new airport being less than 15 minutes away and with Hunt midwest bringing 3,300 jobs to that city. Not to mention close to Leavenworth where the jail and army base are located. We managed to buy these properties $67,000 below list price. After inspections discovered the 3/4 HVAC units were original, after much back and forth managed to get my buyer a $2,400 credit. Those properties appraised at $47,000 above what we had gotten them under contract for. I referred this buyer to my go to lender who managed to help him buy his rate down and close these properties in only 21 days.

These properties will realize some big cash flow in the near future, they are currently underrented at $950 and $1050 per side. Each unit can easily be turned from a 2 bedroom, 3 bath to a 3 bedroom 3 bath simply by adding a door and a closet to the basement. This will bump up rents another $250+ easily between bringing up to market rent and adding bedroom. With the immediate equity this buyer will be able to refinance once rates drop again, whether it be another year or two, and drastically increase rents. With how new it is maintenance will be low and these duplexes will bring in some great cash flow! I was also able to refer this buyer to my amazing property manager that is going to take great care of these properties for him

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

Laura Marks (Property Manager)
Alex Rico Chang (Lender)