5 unit in Springfield OH

[Matthew Insley]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $127,000
Cash invested: $17,000

This is a 5 unit property in a C neighborhood. 4 units are 1 bed 1 bath units. Cashflow does not account for vacancy, repair, or capex.

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

Multi-units have better cash flow and more cushion for issues that arise.

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

MLS

How did you finance this deal?

20 year 5/5 ARM 20% down minus repair allowance of $10,500 (applied towards down payment), seller paid $3000 closing costs also. Repairs aren't super urgent, will use cash flow to slowly replace windows and make other minor repairs. Roof condition is moderate.

How did you add value to the deal?

Raised rents from $1950 per month to $2250 per month.

What was the outcome?

A great cash flowing property. Vacant units get rented without issue.

Lessons learned? Challenges?

Get a cheap maintenance person for repairs. Give them small jobs to judge their character and quality of work.

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.