My First Investment!

[Jack Nazarian]

Investment Info:

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

Purchase price: $155,000
Cash invested: $40,030

I recently purchased this duplex in Euclid, Ohio. I was able to negotiate the price down to $155,000 from the asking of $164,900. The appraisal came in at $170,000 (Woo!) Right now the CoC return and cashflow are not ideal but I needed to get my feet wet.

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

I wanted to jump into multiple units to start a stack. This is not quite turnkey but it has two m2m tenants that have been here long term.

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

My real estate agent was able to send this deal to me. Based on my own return goals and the advice of my PM and Realtor I was able to hone in on a lower price. Coupled with the home's age I was able to negotiate nearly 15K off of the price.

How did you finance this deal?

Standard Mortgage Broker, conventional loan at 25% down.

How did you add value to the deal?

I will be renovating in April to bring both units up to a more modern aesthetic to raise rents.

Lessons learned? Challenges?

I learned to trust the professionals and the process. I learned that some people genuinely want to help investors succeed.