All Forum Posts by: Melissa Kirk

Hi Todd,  The cash flow has changed substantially since I first posted this.  Taxes are $2,603, insurance $1,055.  There is virtually no maintenance since I just renovated both units.  Each apartment is 2 bedrooms/ 1 bath.  I've leaned away from mid-term because the income is so much higher on short term.  Mid-term was renting for $1,400 a month but short term I can bring each unit over $2,000. So the new numbers are cashflow of $3,500 a month, $42,000 a year with a cap of 28. 

Investment Info:

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

Purchase price: $162,000
Cash invested: $162,000

Purchased this duplex property with a self directed IRA. Each unit is 3 bedrooms. We'll be renovating one side shortly to increase the rent.

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

I wanted to a typical buy and hold long term rental. We decided to purchase with a self directed IRA. I appreciated that the windows were newer and each unit had a furnace and central AC. This is unusual for multi-family in this location. Most all have window AC and electric heat. This is also a side by side duplex so that was more desirable in our opinion.

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

This was on the MLS. I negotiated over $10K off the price due to the current rents as well as removing any commission from my side of the deal. It was equivalent to a higher offer if a buyer brought their own agent to the deal.

How did you finance this deal?

Paid 100% from a self directed IRA

How did you add value to the deal?

We plan to renovate one side as it's in poor condition. The renovation will be about $10K and we'll raise the rent to approx $1,000 a month. The other side is nicely renovated but is currently renting at $900, which is $100 under market.

What was the outcome?

So far so good. We haven't owned it long enough

Lessons learned? Challenges?

It certainly has been a learning curve with buying through a self-directed IRA.

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

I'm a Real Estate Broker, I highly recommend myself! :)

Investment Info:

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

Purchase price: $112,500
Cash invested: $142,000

Duplex with 2 furnished apartments. Typically one is rented to a mid-term tenant and the other is short term

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

I really wanted to try out a short term rental. My ideal tenant is traveling medical professionals for mid-term.

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

Off Market. I was notified by a fellow agent that is would be coming on the market

How did you finance this deal?

Cash

How did you add value to the deal?

Renovated both units, furnished as well

What was the outcome?

It's been great so far! My market is very small and many people said I was crazy to have a short term rental in this location. Paying cash has given me a great deal of peace of mind considering this was the beginning of covid.