4 unit in Springfield OH

[Matthew Insley]

Investment Info:

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

Purchase price: $100,000
Cash invested: $28,000

4 unit: 1 bed 1 bath each. 2 upstairs and 2 downstairs. $475 for 3 units $450 for 1 unit. Monthly cashflow does not account for vacancy, repair, cap ex. Property is in overall good shape. Roof has been replaced in the past 5 years. Working on replacing windows slowly.

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

Higher cash flow with multi-units.

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

My real estate agent brought it to me as an off market deal.

How did you finance this deal?

I financed this at a local portfolio lender with 25% down and a 20 year 5/5 ARM.

How did you add value to the deal?

Raised the rents from $1710 per month to $1875. Replaced the windows in one unit so far.

What was the outcome?

A small multi unit in a decent part of town that produces good cash flow.

Lessons learned? Challenges?

Bed bugs are everywhere!! I have learned to get a cheap maintenance person and have them buy the good chemicals from A1 Able and spray it for you. If you have A1 Able do it, it is way too expensive and they don't guarantee that it won't spread to other units in the building. Month to month leases are a great way to maintain control over tenants who are possible problems. 30 days notice is all it takes to get rid of them. Then you can file eviction if needed.

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

I always work with my real estate agent. She has saved my butt a couple of times when trying to get too creative.