Duplex in Ohio (passive income portfolio)

[Peter Needham]

Investment Info:

Other buy & hold investment in Akron.

Purchase price: $28,000
Cash invested: $28,000

Duplex that we picked up and invested an additional $10,000 into to get in rentable shape. Filled within 2 months and have had a total of 4 different tenants in place.
We rent each side out for $650 a piece and had an average of $450 in expenses for both sides. We clear about $12,000 a year on it. Made our money back after the second year and are in profit mode since then.

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

Cash Flow

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

With my realtor that was helping me sell a property we picked up at a tax deed sale in Summit County Ohio

How did you finance this deal?

Equity partner. He fronted the money and we split profits 50/50

How did you add value to the deal?

We did some immediate capital improvements and immediately fixed small maintenance issues that raised the value of the rents from $450 a unit when we bought it to $650 a month currently.

What was the outcome?

Cash positive and continue to profit off of this Duplex.

Lessons learned? Challenges?

A good deal doesn't have to cost a lot or be in an "great" area. All you need is quality tenants and a great management company that you trust to make good money anywhere.