24 offers on 13 properties and just closed on my first purchase!!

[Allen Tracy]

Investment Info:

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

Purchase price: $89,000
Cash invested: $89,000

Contributors:
Remington Lyman

After 24 offers on 13 properties I finally closed on my first purchase right in the middle of the covid-19 pandemic. This is an out of state investment for me. Not pretty on the outside but great on the inside.

Duplex with one side rehabbed, other side has 13 year tenant. Purchased cash at $10,000 over asking to beat out other offers then financed the day after closing with 30% down (bank requirement).

Long term tenant currently pays $475, vacant side being marketed at $750

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

I had been looking into multi families that I could pay cash for and generate good cashflow. I really liked that one side was already rehabbed and the other side was well taken care of with the option to rehab at a later date and add value.

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

Found on Zillow, offered cash with an escalation clause. I beat out six other offers that were just slightly above mine but were financed.

How did you finance this deal?

Cash from my HELOC and then immediately financed the day after closing with 30% down (bank requirement).

How did you add value to the deal?

Eventually I will rehab the occupied side and raise rents.

Lessons learned? Challenges?

I was under contract on a different duplex first that was the exact same price that had a lot of problems. After pouring time into analyzing it, quotes from lenders and insurance agents, money into inspections, and getting attached to the idea of owning my first property, I had to realize that I needed to pull emotion out of the decision and let that first property go. Luckily I did and quickly after I ended up with this one which is a much better deal.

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

Remington Lyman was my agent and Donny Thompson from ERA Real Solutions is my property manager. Remington has been amazing at sending me deals and guiding me to the areas to invest in. Donny has been guiding me through the management process and also helping me decide the areas and properties to invest in. As an out of state investor I couldn't have done it without them.