320/322 10th street, elyria, ohio

[Paul Rink]

Investment Info:

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

Purchase price: $50,000
Cash invested: $7,500

I acquried two homes on one lot, one 4 bed 2 bath that used to be a duplex and can be easily converted back. and a 2 bed 1 bath. This was an of deal which I spent 7500 my first few months doing much needed repairs. Both units where already rented which made and is still making it a little tricky to get work done. Both houses are renting for $550 a month with the tenents paying all utilities. As i finish work on the 4 bed 2 bath rent will go up to around market average.

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

A member at my local VFW is an older guy that was looking to start selling his properties. As i was looking for my first deal I felt comfortable working with someone I new. And I have been looking for a 2-4 unit for my first property .

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

The negociation went back and forth for about 2 months as we saw each other til we agreed on a price.

How did you finance this deal?

HELCO

How did you add value to the deal?

New furnace, bathroom remodel, added plumbing and electric for washer and dryer, repaired leak in both roofs, repaired front porch stairs.

What was the outcome?

I raised rent $50 per unit.

Lessons learned? Challenges?

As I still have more work to do I would say need to add more of a cusion on my budget as its costing me almost double what I thought to do repairs.

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

I did not