New side by side properties for another year of rehab fun.

[Alex Bacon]

Investment Info:

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

Purchase price: $290,000
Cash invested: $87,000

The property is a 3 unit, mix use, consisting of two 2x bedroom apartments with one commercial unit on the ground floor in the University of Cincinnati district. It's been neglected both financially and physically which gives us the ability to create an ARV of almost double the purchase price after 12- 18 months.

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

This property is in prime location for my portfolio, it's absolutely enormous and has been extremely neglected. It was brought to my attention with perfect timing due to the completion of my most recent Brrr project being completed and in the process of refinancing.

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

This deal was brought to me by my Realtor while she was working on another deal with a realtor I had purchased a large 6 unit from a year ago.

How did you finance this deal?

This deal was financed conventionally through the bank with the down payment coming from myself and a friend who is now a new silent partner.

How did you add value to the deal?

Currently the 2 apartment units are under rented which we'll be increasing rents and adding 1 bedroom to each unit this alone will almost double the monthly gross income. As with commercial space, we'll be updating it through out and increasing rents to market rates. The commercial space is currently in use by two businesses, it is a very large space which easily calls for double the current rent.

What was the outcome?

It's a new purchase so we'll see next year.

Lessons learned? Challenges?

It continues to be a head ache dealing with the bank but due diligence and staying relaxed knowing it's going to play out the way it should is my general rule.

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

My realtor is great and I'd recommend her anytime.