Updated almost 6 years ago on . Most recent reply
Up and Down Duplex in Pittsburgh
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Pittsburgh.
Purchase price: $79,000
Cash invested: $10,000
Up and down duplex on the Northside of Pittsburgh. Attached garage, front porch, quiet street.
My first deal EVER!!!!
What made you interested in investing in this type of deal?
I read Rich Dad Poor Dad and decided that I wanted to purchase my first house. I looked for houses for months and then I heard that someone at my job was selling their duplex as they looked to move out of state.
How did you find this deal and how did you negotiate it?
My principal at the time was a real estate agent. We looked at plenty of houses, but nothing worked. One day while at work, a bunch of teachers were talking and it came up that I was looking for a house, preferably a duplex. One of the teachers spoke up and said that he was thinking about selling his duplex and that he wouldn't mind selling it to me because he wouldn't have to work with realtor. He had a price in mind and it sounded good at the time so I went for it.
How did you finance this deal?
Traditional financing.
How did you add value to the deal?
I didn't know what I was doing so I honestly just jumped in. Over time I've done some improvements to the property, but initially, I was excited because I was house hacking and it was my first deal. I didn't know how to be a landlord.
What was the outcome?
I still own this property today and it has about 80K worth of equity. I didn't know what I was doing at that time, but I knew that the property was in a great space and that I was getting the house for a decent price. I ultimately want to use this property's equity as a catalyst for future deals.
Lessons learned? Challenges?
1. If it's your first deal, make sure you run the numbers.
2. When you are looking for a mortgage, make sure you know YOUR numbers (credit score, bank account balances, pre-approval mortgage amount, how much house you can afford, timeline for purchase)
3. Reach out to those who have purchased houses before. Going through the process of getting a mortgage by yourself isn't fun.
4. Get educated BEFORE you purchase your house. Don't have analysis paralysis. When's it's time, pull the trigger!!!
Most Popular Reply
Congrats! Starting with a duplex was a smart move. Even at 50% occupancy you still have money coming in. Fully rented multi units in Pittsburgh are cash cows if purchased correctly. Whenever someone wants to start investing I always recommend a duplex as the risk is so much lower than starting with a single family home.