First rental property in North Dakota

[Joseph Errett]

Investment Info:

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

Purchase price: $52,500
Cash invested: $17,500

I found this duplex on the MLS. The property was vacant when my partner and I purchased it. We made largely cosmetic repairs and our tenants moved into both sides this spring.

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

We had been looking at rentals for a couple years at this point and had looked at a variety of properties. We weren't really set on what our first deal should look like.

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

We found this property on the MLS. After talking to the realtor we realized that we were dealing with a motivated seller and we could offer much less than the asking price.

How did you finance this deal?

We financed this property through a local bank.

How did you add value to the deal?

This property was vacant and in need of repairs when we purchased it. We mainly refinished floors, painted, and got it leased.

What was the outcome?

Now that the tenants have moved in, we are generating roughly $800 dollars a month of cashflow.

Lessons learned? Challenges?

This property is in a college town and we intended to rent to college students. While we were able to get leases signed quickly it was a few months before they actually moved in.