New Construction Duplex with a Commercial Loan
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $235,000
Cash invested: $25,000
Built to owner occupy the upstairs
duplex
3bed/1 bath up and down
Cost to build $235,000
Current Value $275,000
Each unit rents for $1800/mo
What made you interested in investing in this type of deal?
We needed a bigger home for our family and wanted to continue to live in a duplex where our mortgage was paid by tenants. A vacant lot came with our 2nd income property purchase.
How did you finance this deal?
This deal was financed with a commercial loan (80%)
For the down payment:
We had equity in the land (~$30,000)
We used a home equity loan from our first duplex to fund the rest of the down payment
What was the outcome?
We lived in this duplex for 3 years. Rent from the downstairs apartment paid the entire mortgage and taxes. Now it is a great cash flowing property.
Most Popular Reply
@Kelly Skeval - awesome! I've found that our 3/1s rent well too, you just don't see it very often in new construction.