This young family is taking a breather, surrounded by moving boxes after a busy day transitioning from owning a house to owning a duplex! They bought a duplex contingent upon the sale of their house, and closed on both that sale and the purchase of their new duplex the same day. Movers came the next day, and the new owners moved in the day after that!
After investing tons of work into their house, which they bought as a foreclosure, they decided to cash in and invest in a duplex where they will live while having a renter contribute to their mortgage payments… so they can save up for their next investment property. These are wise buyers with a plan!
So how did this all work?
- First we figured out how it could work financially…
- Estimated what they might net from the sale of their house
- Talked to a lender to get pre-approved and find out what they would qualify for in a purchase
- Confirmed they would have to sell their current house first to qualify for a duplex they would want to live in
- Looked at some duplexes to see if they could find anything that would work in their price range
- Learned that sellers were willing to look at offers contingent upon the sale of their current home
- Made an offer on a property, and learned that multiple offers are the norm, not the exception
- When they felt comfortable they would be able to find something, we had a consult with our stager (included in our services) to create a plan of what to do to get their current home ready to sell
- Through a business contact I learned of an investor who was thinking of selling a duplex and might consider selling direct
- Visited the property and made an offer
- Contingent upon the sale of their current house
- Subject to city inspections for both time-of-sale and rental license
- Both units were rented, but seller agreed to give one tenant notice to move out prior to closing once their current house was under contract
- Worked out contingency dates to allow time in case something came up causing delays in the sale of either property
- Visited the property and made an offer
- They had about three weeks to get their house listed and ready for showings
- Had their city inspection
- We scheduled professional photo shoot and created a property website with additional information(part of our services)
- Listed their property as coming soon one week prior to listing going live in the MLS
- Listing went active on a Friday, there were 30 scheduled showings leading up to review of multiple offers on Monday
- An offer was chosen from multiple offers and closing date was negotiated, including delaying possession 48 hours after closing to allow time to move
- At that time sellers were planning a trip to the Bahamas and we were planning a trip to Norway so dates were planned to accommodate both trips
- Seller of the duplex was notified so he could give ample notice to his tenant to move
- What wasn’t planned was having COVID-19 complicate things
- Both trips were cancelled
- There was some anxiety over no tenant evictions allowed because of coronavirus, which could have caused closing delays, but the tenant was cooperative and moved as planned
- Closing day was full, but proceeded as planned
- Final walkthroughs for both their sale and purchase happened in the morning
- After that they closed on the sale of their house, followed immediately by the purchase of their duplex using the proceeds from the sale of their house
- They changed the locks on their new duplex and headed back to their house to finish packing
- Movers came the next day, and the buyers moved in the day after that!
These aren’t the only clients I have currently looking for a duplex to buy, planning to live in one unit and rent the other… in fact, I helped another buyer write an offer on a duplex the weekend after these clients closed on theirs!
If you are thinking about making a move and want to talk about how it would work or whether it even makes sense for you right now, contact us. There is nothing I like better than helping people figure out a plan… even if it means staying in place.
If you do decide to sell there may never be a better time because both inventory and mortgage interest rates are so low. I am currently helping sell a home where the sellers have lived for 56 years! As they finish getting it ready it is listed as coming soon… and already has 4 showings scheduled for when it is active, about 2 weeks out!
Sharlene Hensrud, RE/MAX Results – firstname.lastname@example.org