2nd Duplex Purchase
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $50,000
Cash invested: $35,000
1056sq ft Duplex - Each Door is 1/1.
What made you interested in investing in this type of deal?
This would be my second deal and I had the money to buy it outright and fix it up. I look at properties as if I would live there and what I would want in the property to ask for more rent. Now the tenants don't have to leave their property to do laundry and they can stay comfortable in the home on hot days with the mini split vs a window unit.
How did you find this deal and how did you negotiate it?
Found it on Redfin, and used the listing agent to purchase.
How did you finance this deal?
Purchased with cash from my life insurance policy.
How did you add value to the deal?
Used $35K from life insurance policy to add mini splits on each side, laundry hook ups on each side, add a new surround on the vacant side and split the water utilities to each tenant so that I wouldn't have to pay the water bill. I then added new concrete patios in the rear of the properties so the tenants would have an outside shaded area to relax and added new concrete sidewalks.
What was the outcome?
Appraised value to $93K, increased rents from $600 on one side to $735 and moved utilities to each tenant. Then put a new tenant in the vacant side for $700. Gave a special of $200 off first months rent for two months for a 12 month lease.
Lessons learned? Challenges?
Front concrete looks great and gives nice curb appeal, but that cost did not improve the value of my property from the appraised value.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I would not use the listing agent that represents the seller again. I would rather get my own agent and be represented by someone who wants to help me close the deal.