BOUGHT TWIN -PLEX in Maumee, Ohio, my first multi unit investment

[Jim McAuley]

Investment Info:

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

Purchase price: $197,500
Cash invested: $25,000

1200 SF each unit 2 bd 1.5 bath. Came with new siding and windows, no repairs or rehab needed! Also had good paying established tenants.

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

Flipped a few house and had a SFH as a rental, wanted to move up to multi-unit properties.

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

I wrote letters to every owner of a 2 unit property in Maumee. 117 letters, 8 responses and one sale. The owner was asking 200,000,
after 3 weeks he finally came down only 2500, bought it for 197500. It is a really nice building.

How did you finance this deal?

Conventional financing.

How did you add value to the deal?

Did not have to do anything, no improvements were needed.

What was the outcome?

The appraisal came in less than expected, so I had to use some money out of my HELOC to make a larger down payment.
My next multi unit I am getting is going to be a 4 unit in Maumee Ohio. So I am going to have to build up my capital by buying a couple of fix and flips in Maumee or Perrysburg, Ohio. I bought all of my houses in Maumee, Ohio. i am familiar with the market, that is why i am looking in just Maumee. If I find a good deal in Perrysburg, that is a bonus!

Lessons learned? Challenges?

The negotiation and dealing with a conventional bank were different than when I bought my houses.