Flipping duplex in Old Brooklyn (Cleveland)

[Steven Cathcart]

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Cleveland.

Purchase price: $50,000
Cash invested: $25,000

Obtained a great duplex off-market in the Old Brooklyn neighborhood with my business partner. Tenants in both units, but one tenant (who was not good according to previous owner) was evicted before we took ownership. In the process now of making units rent-ready, and will list on the market in the coming weeks.

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

Hot neighborhood in the Cleveland-city limits. Will require minimum cash to get ready for the market.

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

Response to a mailer. Negotiated with the owner that if bad tenant was remaining when we took ownership, we'd purchase for $48,000. If she could get him out prior, we would buy for $50,000. She got him out, which is what we were hoping for!

How did you finance this deal?

Cash. I put in half, my business partner put in half.

How did you add value to the deal?

In the process now. Fresh paint, new carpeting, fixing odds and ends. Doesn't need much work to be able to list.