This is a 1948, 4-unit apartment complex in the Oakwood area of Ohio. It is currently an "ugly-but-sound" building that is a cash cow, especially for its purchase price. Each unit has it's own HVAC and water heater (I know, right?!).

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

It was in literally the best area for real estate in all of Dayton. The moment it went on the market, my real estate agent (Colleen Carr) knew it was a steal. Oakwood is where the million-dollar mansions are, and this being on the outskirts of the municipality, it is bound to do very well. I got it for well below the appraised value ($179,000, pre-renovations!).

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

The previous owner was a real estate agent herself (Patty Skilken), and quite honest in her sale of the property. She made a great profit off of it, with a mortgage completely paid off, and having received 1760/month in rental income previously. Colleen Carr found it for me, and we put in an offer within 6 hours of it being on the market.

How did you finance this deal?

Conventional loan with 25% down, 5.25% interest rate.

How did you add value to the deal?

I plan on doing complete renovations of every unit, eventually replacing the rubber roof, fixing up the garage doors, fixing the window lintels, eventually re-paving the driveway, and much, much more. I have a statement of work with outlined pricing already developed for the property.

What was the outcome?

I bought a property for $50,000 below market value in the best area of Dayton, instantly adding $50,000 to my net worth. Two of the units still need to be rented out, but renting out these apartments is very easy. I already have a lead for one of them, and I just got the property today.

Lessons learned? Challenges?

Treat the seller well, be grateful for the opportunities provided to you. Ensure your team is very good at what they do, and always stay connected with them.

Also, for this purchase in particular, if you see a deal and can afford to buy it, POUNCE! They are sold quickly, which is why they're so hard to find. This requires you to pay CLOSE attention to the market, which you will only do if you truly love real estate. Therefore, TRULY love what you do in order to do it well.

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

MY Agent: Colleen Carr -- she has gotten me two incredible deals thus far. She truly is at the top of her field (top 50 in agents in the Dayton area).
Selling Agent: Patty Skilken -- incredibly honest, and a firebrand (spunky!). She will be no-nonsense with you, and will be able to help you out with your needs.
Mortgage Broker: Phil Forbes -- he knows my plan, and always gets me the best rates. He's also an investor himself, and has courage, which is important in this field.