The journey of a thousand steps starts with the first step.

[Eric Larson]

Investment Info:

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

Purchase price: $132,500
Cash invested: $8,000

Nice side by side historic duplex in the hometown of Jiff Peanut Butter and Smuckers products. Good working town and duplex is in reasonable condition. Plan is to improve condition and spin up rents as we hold the units. Current rents are approximately $100-150 under market with inherited tenant. Mostly cosmetic changes are expected going forward.

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

We have worked hard to expand our holdings over the last 6 months and this is part of the long term strategy to expand our holdings of cash flowing properties over the next several years.

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

A friend called me because they were tired of holding and managing it. I gave them the option to list and sell it or for me to buy it with seller financing initially then refinance it after a period of time. The advantage for my friend if we bought it would be the effective benefit of a higher return because of the interest payments over time as well as the reduction in capital gains.

How did you finance this deal?

Seller financing with a balloon 5 years after purchase.

How did you add value to the deal?

So far we have improved both units, rented the second unit and increased cashflow significantly.

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

I am an investor friendly agent in the Orrville and Wooster area of Ohio and happy to help you come up with creative solutions for your real estate purchasing and selling needs. I have a good network of investor friendly lenders, legal team, tax prep advisors, and technical professionals.