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Updated over 1 year ago,
Any investor in Ohio can guide me to convert my duplex into Triplex
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $125,000
Cash invested: $75,000
Duplex, fully rented since January 2023, unit A rented for $825 + $50(water)/per month, unit B rented for $850 + $50(water), 30 year fix mortgage $1102 at 11% interest rate DSCR loan w/ 1% penalty on the first year, still cash flowing $400, can be converted to a triplex(I need some help with this)
What made you interested in investing in this type of deal?
It was a great deal, still cash flow even with a high interest rate.
How did you find this deal and how did you negotiate it?
I found it in the MLS the first day that was back to the market, It was thought negotiating with the lender, I could pay 115K unfortunately the minimum loan was 100k, but I got 5k back on closing, 2% help on closing and 1 year home warranty.
How did you finance this deal?
DSCR
How did you add value to the deal?
The house was in need of new windows, floors, kitchen and bathrooms, I spent around 33k, I believe on a good looking house you will get a good tenants.
What was the outcome?
Great tenants, great property, with some guidance ready to convert the basement in another unit, increasing the value of the property and the cash flow as well, right after cash out refinancing.
Lessons learned? Challenges?
Long distance investment is not easy, I really wished to be read at the time the book of David Greene, I did everything wrong, I knew my Real Estate Agent by phone (superficial check on him), I didn't have a property manager, my lender went from 8% to 11% interest rate, I close the deal on December, my cash was gone, still trying to recover from this deal, but I know that I can turn it around, is just a matter of time.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I really like my property manager, Anthony Fraser