Duplex in Old Brooklyn

[Chris Taylor]

Investment Info:

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

Purchase price: $70,000
Cash invested: $22,000

Duplex in Old Brooklyn (Cleveland, OH). It was an off-market deal. Both units are 2 bed 1 bath and about 1,000 SF each.
Current Rental Income $1075
P&I, Tax, Ins. $525
Water/Sewer $150
Vacancy $55
CapEx $55
Maintenance $55
Management $105

Total Expense $945
Current Cash Flow $130
Cash flow is lower than I would like it to be but I also think I could get $650 per unit once I have turnover. Assuming I can do that it would increase the cash flow to $355. I am also self managing.

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

Reasonable price in a good rental market. I have been a BP member for about 18 months now and happy to say I landed my first deal.

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

A co-worker introduced me to one of his friends looking to sell his rental properties and retire.

How did you finance this deal?

HELOC and investment property loan.

How did you add value to the deal?

No value add at this point. Units are currently occupied.

What was the outcome?

Currently occupied and cash flowing.

Lessons learned? Challenges?

TBD

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

I did not make this purchase through Holton Wise but I would recommend them for any of your investment property needs. The lender I used on this deal was actually a referral from their website.