Updated over 6 years ago on . Most recent reply
Up Down Duplex Northwood IA
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Northwood.
Purchase price: $40,000
Cash invested: $8,000
Up and Down Duplex. Both 2 bed 1&1/2 bath. First step into multi family. Produced solid cash flow for the last 7 years. Small town, good schools. Renovations include a new roof and new flooring.
What made you interested in investing in this type of deal?
I had just BRRRR my first SFH. My Dad said, do you want to partner on this one? Sure...
How did you find this deal and how did you negotiate it?
Lived in the town. Local investor cashing out. Place was vacant and offered for over 50,000. We offered 40,000 and waited 4 months for them to say yes.
How did you finance this deal?
Local bank. One cavet, I thought we had a 20 year fixed rate loan when purchased. We did not. it is variable. Working now to pay it off.
How did you add value to the deal?
New roof. Installed Washer/Dryer in the basement. New flooring throughout.
What was the outcome?
It has been a solid earner for 7 years.
Lessons learned? Challenges?
If you buy it vacant, put language in the sale to keep it vacant. Former landlord filled the building for 1 more months rent. We kept the renters. Long story short, eviction and an unplugged freezer full of meet became my problem. Since then smooth sailing.
Partnering with family can be fun...
Doing part of a roof first, instead of the whole thing right away got expensive.