First MF purchase in Cleveland OH

[Tristan Kelly]

Investment Info:

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

Purchase price: $90,000
Cash invested: $55,000

Triplex in SE Cleveland (D+ neighborhood)

Purchased for 90 and saw 105 for valuation. 25% down plus closing costs and unit repairs has led to about 50-60k going into the deal. First year was very rough with poor property management and tenants. Stabilized in late 2024 and will be seeing about 900 in monthly cash flow.

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

I wanted to start with a cheaper property I could reasonably afford and also learn from. Multifamily always made sense to me as initially I was very impatient and wanted to see a decent cashflow.

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

Found on Zillow during a competitive time in the market. Slightly increased the offer to quickly go under contract, but still had inspections and everything done before completing the deal.

How did you finance this deal?

Conventional loan, 25% down at ~7% interest rate

How did you add value to the deal?

Offered 3k in holding and moved quickly

What was the outcome?

Deal closed, higher valuation than purchase price. Enough immediate cashflow to balance out the mortgage, taxes and insurance.

Lessons learned? Challenges?

Try to see the property yourself if you can (was out of state initially). Take the effort to solicit contractor recommendations from multiple people. Begin a maintenance schedule ASAP. Think about lead certification for Cleveland if you are purchasing in the current market.

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

Investor focused real estate agent was Journey Toole. Lender was Amko lending.