Second Multi Family in Columbus Ohio and looking for more!

[Michael Behmke]

Investment Info:

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

Purchase price: $915,000
Cash invested: $915,000

Solid 3 Unit in Victorian Village near The Ohio State University. The brick built home has a 3/2.5, 1/1 and a 2/1.5 all with a garage space.

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

We were able to get a great contract on a condo-hotel unit we were trying to unload for 15 years. The market made it possible and we actually used a 1031 to defer depreciation even though we closed for less than we bought the place for back in the good old days of 2015. In the process we bought out 50% partners and now enjoy great cashflow and look to place a loan on it once the lenders start to get hungry now the feeding frenzy seems to have ended.

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

We kept a great relationship with the agent who we bought our first Columbus four unit from back in 2021 and he was able to bring us an off market listing just in time for us to complete our 1031 exchange.

How did you finance this deal?

Paid Cash, but looking to re-fi when I see 5% money.

How did you add value to the deal?

The market rents were low and we are already increasing two of the month to months with raising one and leasing new to another.

What was the outcome?

Too early to tell, but we want to clean it up and make our renters happy. We likely will re-fi, use the funds for another, and see this one in our portfolio for years to come.

Lessons learned? Challenges?

Keep your relationships and let them know they are your people!

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

Ken Wightman of Berkshire.