Pleasant Ridge Duplex (soon to be triplex)

[Kate Zieverink McMinn]

Investment Info:

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

Purchase price: $198,000
Cash invested: $6,930

This is a HUGE brick duplex in Pleasant Ridge (a relatively hot, mostly residential Cincy neighborhood). The house is a block from the business district and across the street from a country club. Each unit is about 1,500 sqft. (2bed/1bath). A bit dated, but overall sound structure and mechanics. Separate utilities, separate laundry hookups, and divided basement. Renting downstairs unit at market rent and house hacking while we convert the large, unfinished 3rd floor into a 3rd unit.

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

This was an off market opportunity which is typically more attractive in our market. Seller had some sense of urgency, but no interest in taking to the MLS. Unique situation which required a lot of patience and some terms most investors wouldn't be interested in (extended closing timeline, rent-back to owner after close, etc). These "trade-offs" left a lot of room for value add.

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

Someone on our team had a relationship with the owner's family member who mentioned he would be open to selling. We presented the deal to a few of our own investors before I realized it would be a great fit for my personal portfolio. I knew what the seller needed to make, and negotiations were straight forward. Purchase price is well under appraised value, but we made it an easy, convenient deal for them.

How did you finance this deal?

FHA loan at 2.75% (UNREAL).

How did you add value to the deal?

Will be adding a 3rd unit. 1 unit at market rent already covers the mortgage, so plenty of room for cashflow.

What was the outcome?

Moving in next month to get started.