Performing Duplex in Good Neighborhood

[Trevor West]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Fayetteville.

Purchase price: $75,500
Cash invested: $1

This was a wholesale deal. By knowing my specific criteria I was able to decide quickly if the property worked for me or not. Being that it did, I made it a point to see the property right away. This enabled me to beat out other interested parties and secure the property.

What made you interested in investing in this type of deal?

I have established myself as the multi-family investor in my local area and in my sphere of influence.

How did you find this deal and how did you negotiate it?

This property was brought to me because I had built a relationship with the wholesaler and he knows I buy small multi-family properties.

How did you finance this deal?

Used hard-money to finance the purchase and rehab - then refinanced into longer term financing. Money into the deal prior to refinance was closing costs and points from the hard money lender.

How did you add value to the deal?

Increased rent to JUST below true market value. $550.00 vs $600.00. Since the property already had tenants in it - we did not want to put undue strain on them immediately. The property is a long term hold and I like having long term tenants. That extra $50 isnt going to hurt me over the next few months.

What was the outcome?

The property appraised for $127,000.00 - our tenants are happy to not have had rents jacked

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Long Horn Investments - Based out of TX - but they have an office in Raleigh, NC. POC Greg Horne