Investment Info:

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

Purchase price: $225,000
Cash invested: $70,000

Updated beautiful brick bungalow duplex in Milwaukee's sunset heights. Updated kitchens and baths and a fully finished basement with an additional half bath. 3 car garage and fenced back yard. Section 8 tenant in one unit, getting full market value after installing security doors, cameras and ring door bells and fixing some minor plumbing and electrical. Appraised at $270,000. I did a 1031 from my last single family's sale to get into this 2 fam.

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

My son wanted to move out and I was already looking to upgrade to 2 doors. I saw the pics and we went to check it out the same night.

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

It was on the MLS. It went live the night before Thanksgiving, so the market was quiet. I wrote an offer quickly and snagged it.

How did you finance this deal?

I used a DSCR loan and $70K from selling my last single familly rental (1031'd the profits)

How did you add value to the deal?

I added 3 security doors and a security camera system including ring cameras. I added exterior lighting and changed all the locks on the building. Corrected some minor plumbing and electrical, added a radon mitigation system.

What was the outcome?

Top of market rents in this rougher area.

Lessons learned? Challenges?

People will pay more for nicer spaces with better finishes and security is important.

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

I am an agent, so I represented myself.