Duplex as a first investment - San Diego

[Adam King]

Investment Info:

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

Purchase price: $750,000
Cash invested: $26,250

I helped my clients find and purchase a fixer duplex to serve as their starter home. I was able to save my clients a lot of money through aggressive and strategic negotiations. I was able to get them $9,000 off of the asking price, and a $30,000 concession to cover closing costs and a rate buydown further increasing their cash flow. I was also able to get the seller to provide all new furnaces for the two sides.

How did you find this deal and how did you negotiate it?

This deal was found on the MLS, I negotiated very aggressively and paid off in a big way for my clients.

How did you finance this deal?

This deal was financed with and FHA loan

How did you add value to the deal?

I added value to this deal by negotiating with the sellers to credit us $30,000 and to pay for all of the necessary fixes during escrow.

The real value add though is in the capabilities of the property. My clients are going to be fixing up both sides of the duplex, and add another duplex in the back of the lot, for a massive increase in value and revenue in the future.