Kalaheo Duplex rental property
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Kalaheo.
Purchase price: $570,000
Cash invested: $10,000
Long term rental duplex
What made you interested in investing in this type of deal?
Wife bought this one, initially lived in this one. We could see that there was wasted space in this property and added another bedroom to increase rent.
How did you find this deal and how did you negotiate it?
Realtor.com
How did you finance this deal?
traditional loan, took out equity for down payment
How did you add value to the deal?
Had no idea what we were doing
What was the outcome?
It is currently only making $500 monthly cash flow. It should be $1200 cash flow however a family member is living in one of the units at a severe discount.
Lessons learned? Challenges?
Don't let family know I have rentals available. I have learned a lot about being a landlord on this property. rental prices, refab prices, the eviction process which included judges and sheriff departments.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Used a real estate agent to purchase this property. Ran into issues with county planning and what the seller was claiming was permited.