First Investment Property

[Alex Brandt]

Investment Info:

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

Purchase price: $110,000
Cash invested: $27,000

Duplex in Columbus OH. The immediate area is being remodeled and close to downtown and the hospital.

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

Looking for immediate cash flow so I was looking for a turn key property with tenants already in place.

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

Seller initially had it listed for $160k, over period of time reduced the price. He was first under contract for $135k but the deal fell apart (never made it to appraisal or inspect).

He was then under contract again for $130k but that deal fell apart (never made it appraisal. This deal did make it to inspection so I got that inspection report for free.

I initially offered $115k, which was low ball. Appraisal then came in even lower somehow at $110k.

Seller agreed to reduce price.

How did you finance this deal?

Revolution Mortgage gave me 30 year fixed, financing 82.5k at 4.875%. No points and closing costs where 4k.

My PITI payment is $630/month while my gross rent is $1,370.

How did you add value to the deal?

None

What was the outcome?

Closed on 01/17/2020 and hired a property management company, Keller Williams.

Lessons learned? Challenges?

Finding a seller willing to negotiate, this house was the third offer I placed over two months. The previous two sellers were not responsive.

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

My real estate agent John Shannon was instrumental in finding this deal and being my eyes and ears on the ground since I am out of state in Oregon.

[Brandon Goldsmith]

Congrats on your investment! Multi-family is doing well in Columbus. @Alex Brandt