Updated over 5 years ago on . Most recent reply
Under Utilized Duplex Near KU Med
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $175,000
Cash invested: $44,000
Under utilized duplex 2 blocks from KU Med. Turned each unit from a 2 bedroom to a 3 bedroom.
What made you interested in investing in this type of deal?
Location location location. KU Med investing $100mm into expanding their hosptial. This is located less than 2 blocks away. KU Med is one of the largest employers in the MSA.
How did you find this deal and how did you negotiate it?
It sat on the market for an extended period of time. It was marketed as 2 bedroom units. I turned it into 3 bedroom units. Based on condition of the home and length on the market I negotiated the price from 215 down to $175,000.
How did you finance this deal?
Secondary mortgage market through fannie/freddie. 25% down, 30 year fixed.
How did you add value to the deal?
Turned offices into bedrooms.
What was the outcome?
Cash flows near $1000 per month.
