Fourplex in Marysville, Ohio.

[Adam Fout]

Investment Info:

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

Purchase price: $174,500
Cash invested: $43,625

This four-plex was my first real estate investment and it has been a great learning experience for me. Since the time of purchase, I have increased rents 16% and there is more room to bring them up to market rent. Also, I currently pay the water bill and will look at sub-metering water in the future. I purchased this property off market through direct mail.
I still manage this property myself and I have no plans on selling.

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

Cash flow and opportunity for decreasing expenses and increasing the rent.

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

Off-market through direct mail marketing. I drafted the purchase contract and handled all of the negotiations directly with the seller.

How did you finance this deal?

Conventional 30 year mortgage.

How did you add value to the deal?

New tenant screening, rent increases, cosmetic improvements

What was the outcome?

16% increase in rent over 2 years.

Lessons learned? Challenges?

Properties on a slab need to have the main sewer pipes inspected with a camera during the inspection period. Replacing them is a nightmare!

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

Not for this deal.