1st Deal Overall in Dayton Ohio

[Christopher John]

Investment Info:

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

Purchase price: $100,000
Cash invested: $25,000

Duplex purchase with 1 side severely under market rents (20 years since raise) & 1 side vacant. Spending 3,000 to get vacant side rented for 750 a month & will raise other side upon making improvements to home

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

The interior & mechanicals were in good shape but there was room for value add: rent vacant side, increase rents, improve exterior

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

MLS & put offer in day in came on market to compete against 3-4 other offers. Per Inspection we received 3000 to cover various deferred maintenance items on the home

How did you finance this deal?

Personal Savings & Conventional Fixed Rate loan @ 4%

How did you add value to the deal?

Paint, Carpet, small deferred maintenance items, increased rents, rent vacant side

What was the outcome?

We anticipate the property to cashflow 400-600 total depending on increased rents

Lessons learned? Challenges?

Act quickly, water was turned off on vacant side & hadn't been paid in year+