Updated over 6 years ago on .
Duplex in Historic Oklahoma City
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $145,000
Cash invested: $7,786
We bought this duplex for $145,000. The property appraised at $162,000. Each side rents for $775.00. As tenants move out we will update each unit (~$4,500/side) and we will raise rents to $875/side. Not a home run deal, but it's in a quickly growing/appreciating area.
What made you interested in investing in this type of deal?
I'm partial to the area, and was able to get into the deal for almost no money down. They had it priced below market, and I was licensed. After I got the price down a bit, and got my commission (for representing myself) at closing I was only in the deal for $3,436.07. I'll make that back in 2 months.
How did you find this deal and how did you negotiate it?
Instagram, of all places, haha! I had posted to my stories that I was looking for a duplex in the urban core of OKC, and my friend let me know he had a listing coming up and the sellers wanted to offload it quickly.
I promised a smooth transaction in exchange for a lower price.
How did you finance this deal?
Commercial Financing. 25-year AM. 5-year balloon. 20% of contracted or appraised price.
How did you add value to the deal?
Not a ton up front. We will allow it to cash flow for the first year, and then dump ~$8,000 into it next year so we can raise rents. Paint, fixtures, kitchen updates only. Mechanicals are great, it's just not super pretty.
What was the outcome?
TBD! We've only owned it a couple weeks.
Lessons learned? Challenges?
This one was a bit of a unicorn deal. The kind you look for and hardly ever find. Hindsight, I wish I would have negotiated that last $5,000 off so I could be in it for nothing, but all in all, I am happy with the deal.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Heather Howerton at First Liberty did my financing. She is amazing.
Haley Gann at Chicago Title Edmond did the closing.
I represented myself as a licensed broker.