Value add mixed use building in Cincinnati, OH

[Michael Albaum]

Investment Info:

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

Purchase price: $365,000
Cash invested: $1

This is a mixed use building with 9 residential units and 3 commercial spaces. I was going to purchase the building by myself, but my financing fell through due to an appraisal issue and an issue with the appraiser himself. Fortunately, I was able to reach out a cash partner who was willing to finance the purchase and rehab as long as they didn't have to lift a finger and would make several thousand a month in cash flow after the work was done. So I didn't have to put any money into the deal other than the EMD and appraisal cost. There are a few vacant units which I'm starting the rehab with and as other units become vacant I'll turn those as well. I'm also adding amenity features like security gates and creating a courtyard space which is currently being used for trash and misc storage. I'm also planning to create a dog run and fenced pet area. Looking forward to the road ahead!

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

My agent/PM brought the deal to me and was showing me all the other buildings starting to pop off in the area. While it is by no means a gentrified area, we're confident that with all the influx of money being dumped into the area, we're absolutely in the path of progress. So much so that my PM will be moving his office into one of the commercial spaces in the building.

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

My agent brought it to me and we negotiated hard because there was signifiant deferred maintenance.

How did you finance this deal?

With an all cash partner.

How did you add value to the deal?

I'm in the process of rehabbing all the vacant units and will be renovating the others as they become vacant. I will also be adding building amenities and security features.

What was the outcome?

Still in process.