First Duplex Bought/Self-Managed

[Graham Bozarth]

Investment Info:

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

Purchase price: $142,000
Cash invested: $35,000

Bought in April 2021 using profits from selling our first investment, 1322 Parkside Dr. This side-by-side duplex in Grove, OK offers two 3-bed, 2-bath units with recent updates, included utilities, and strong rental demand near Grand Lake. Minimal repairs allowed for quick leasing and steady cash flow. A key step in growing our portfolio by reinvesting profits into low-maintenance, multi-income properties.

What made you interested in investing in this type of deal?

The rents had not been raised in four to five years and were $750 per side, totaling $1,500 per month—exactly the income goal another investor once told me to aim for with a single property. With a purchase price of $143,000, the numbers made sense, offering strong cash flow from day one with room for future increases.

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

Two other investors told me about a group of seven duplexes for sale in Grove. One purchased four, the other bought two, and I bought one. Their guidance and willingness to share the opportunity were key, as I likely wouldn’t have known how to approach a purchase like this at the time. I moved quickly to secure it rather than negotiate heavily.

How did you finance this deal?

Commercial Loan, fixed for 5 Years over 20.

How did you add value to the deal?

The previous owner did not maintain the property on a routine basis, which led to recurring minor issues. After taking ownership, we completed necessary repairs, implemented a regular repair and maintenance program, and the problems quickly went away. We also improved curb appeal, ensured all appliances and systems were in good working order, and replaced the roof. With the property stabilized and well-maintained, we were able to raise rents to reflect market rates.

What was the outcome?

With the property stabilized, we raised rents to about $1,200 per side, significantly increasing monthly cash flow and boosting overall property value.

Lessons learned? Challenges?

Learned the importance of strict tenant screening after taking a chance on a red-flag tenant who broke all the windows. Consistent upkeep protects value and cash flow. Main challenge now is deciding whether to refinance or sell when the loan comes due next April, as I do not have the capital to pay it off.