All Forum Posts by: Donnie Tucker

Investment Info:

Duplex buy-and-hold investment.

Purchase price: $130,000
Cash invested: $0

Acquired from a motivated investor moving out of state in late 2022, this duplex was turnkey upon closing. The previous owner was starting a new business and was ready to be done with real estate. We negotiated a 75% bank finance, 25% seller finance deal that required no money down at closing and no work needed, given it was turnkey. The total monthly PITI, including seller finance, is $1,200 a month. Both sides rent equal $1,600. After maintenance and property management, it cash flows ~$200 a month.

Being the property manager on the backend does have its perks. The tenants have never missed a payment, but being on time has been another situation. Last year, the property averaged nearly $2,000 a month in rent when you include late fees. We have an aggressive $50 a day charge beyond the 3-day grace period. The late fees are not something to rely on by any means, but they increased the property performance in 2023.

The market value is $160,000.

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

My current specialty is residential investing and managing the properties on the backend. Given this was a duplex in a developing area, my strategy was to buy and hold with cash flow. The fact that I could hit every box with $0 down and still have a good margin of safety made me jump all over it.

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

This property was found on Zillow FSBO. He wanted the cash pop to help with his new business but liked the idea of monthly cash on the backend.

How did you finance this deal?

The bank loaned 75% on a 30-year fixed loan with a 15-year balloon. The remaining 25% was seller-financed on a 4% interest-only loan, ballooning at 10 years.

What was the outcome?

We now own a highly desirable duplex with instant equity, cash flow, and no money invested.

 If you would like Donnie we can get on a call and talk about the Greater Cincinnati market. Even if it is just a few minutes and a few questions. I can tell you some stuff about Cincinnati and the area surrounding

I would recommend Memphis! 

Memphis is a great market for many reasons, but three main things that Memphis has going for it are..

- Memphis has relatively affordable housing, and you may find properties within your budget.
- The city has a diverse economy, with sectors such as healthcare, transportation, and logistics.
- Memphis has a strong rental market, making it attractive for investors seeking cash flow.

With affordable prices and over 50% of the city being renters there is always opportunity in Memphis

@Donnie Tucker

Hi there! St. Louis has proven to be a solid investment for me over the past five years. I recommend exploring

https://www.zillow.com/research/data/

and engaging with local real estate groups for up-to-date market data. Feel free to ask specific questions about St. Louis, and I’ll be happy to help!

@Donnie Tucker

For out of state investing Check out the Reno, NV / Tahoe markets. Influx of jobs and people from Silicon Valley and all over California. Low property taxes, landlord, friendly and restricted building. There are still solid cash flow and appreciation buys in the market for SFH and MF. The last few weeks the buying has been heating up for sure. Happy to help find and analyze some deals in the area.

If you already have a list of markets you'd be interested in investing in, consider reaching out to a property management company that works in those markets to provide you with more insight that can help you make a decision on where to start!

@Donnie Tucker

don't - invest in state.  wherever you are.  if your immediate market is too expensive look a few hours away.

OOS investing is more difficult than it's been presented.  talk to this guy:

https://www.biggerpockets.com/forums/48/topics/1160450-run-i...

or this guy:

https://www.biggerpockets.com/forums/67/topics/1167190-strug...