Updated almost 2 years ago on .
Our 1st property
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Camillus.
Purchase price: $55,000
Cash invested: $35,000
Duplex with a 1 bed 1 bath upper and 2 bed 1 bath lower unit. Nearby river access and close to downtown and easy access to biking trail.
What made you interested in investing in this type of deal?
This was our first deal and helped us find our professional connections.
How did you find this deal and how did you negotiate it?
MLS, it was a less than desirable property and was listed low so negotiating was minimal.
How did you finance this deal?
Conventional loan and cash
How did you add value to the deal?
We made several repairs since the previous owner neglected the property including rebuilding the front porch and new stairway up to upper unit. We also did a light renovation on the upper unit including new windows so we were able to raise rent on that unit. The lower unit will be renovated when the tenant moves out.
What was the outcome?
I estimate we could break even on this deal if I had to sell today. The cash flow is excellent considering what we have invested and we plan to hold this property for that reason.
Lessons learned? Challenges?
Our contractor was extremely slow to complete any work. We made the mistake of paying half up front and he did not start working when he said he would. He was almost 2 months behind the verbal deadline we agreed to. My tenants were not happy about the situation either.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We use Cummings Mortgage for our financing, and Andy Kluding is our realtor. Our current contractor is Jenkins Construction Services. We currently manage our own properties.