7 duplexes, one purchase

[Eric Larson]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $700,000

Set of 7 duplexes in Canton, Ohio. Looking to hold these cash flowing places long term while spinning up rents that are slightly under market as we roll along.

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

We have looked to aggressively expand our holdings over the last 6 months and have done that by doubling our holdings, even in a price expanding market.

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

I was looking for an investment target for a friend of mine and networked with another friend and he brought up this opportunity. After evaluating the spaces and the numbers, we thought it would be a good opportunity to grow our holdings and cashflow quickly and for the long term.

How did you finance this deal?

We have private partners with this deal and we financed it through our local lender contact with a blanket mortgage at a very attractive rate.

How did you add value to the deal?

As part of the deal, we got three of the duplexes resided and that was included in the purchase price.

What was the outcome?

So far we are making improvements as needed, but they are functioning and cash flowing well.

Lessons learned? Challenges?

This was our biggest acquisition, and the third acquisition of multi-family assets within a 6 month period. Since we self manage our properties (so far), this has taken a little bit of time to adjust our systems to efficiently handle the new load. Over that 6 months we have expanded from 14 to 34 units owned and managed by us. We have some work to do yet to get everything as I like it, but we are making good steady progress.

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

I am a local real estate broker as well as investor with 14 years of experience. I have good contacts for most of the supporting professions for our industry and would highly recommend them.