Updated over 6 years ago on . Most recent reply
Closed Today on our SF Bay Area Duplex
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Alameda.
Purchase price: $1,053,000
Cash invested: $153,000
Vintage duplex upgraded with modern electrical and plumbing. Two 2/1 units, upper and lower.
What made you interested in investing in this type of deal?
This deal was located in one of the most desirable areas of the SF Bay Area. It was nicely remodeled with a finished and legal basement unit to offset personal costs. Buying into a duplex like this helped us to afford our personal residence (living in one of the units) at under market value for a SFR.
How did you find this deal and how did you negotiate it?
Being an active broker, I keep up with the market on the MLS and elsewhere. This was listed in my local MLS and I jumped on it.
How did you finance this deal?
My wife and I were able to use FHA financing given we were living in one of the units.
How did you add value to the deal?
We're planning to add an additional bathroom to the main unit to improve value, refinish some surfaces in the downstairs unit, and landscape our backyard. There is also plenty of room in the backyard to add an additional ADU.
What was the outcome?
It’s a new deal for us, but we’re excited to have closed on it today.
Lessons learned? Challenges?
The hardest part of this deal was getting it under contract. We had to be patient for a long time while we searched and made out multiple offers out there on the market before one stuck. It was super important to do our pre-work ahead of time in order to present a competitive offer.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I represented myself given that I’m an active broker. However, I’m also familiar with this local market which is one of the most challenging markets to find properties in. The offer for this property included a couple of “ninja” moves (to coin a phrase from a fellow colleague of mine) to make my offer highly competitive.
