Updated over 5 years ago on . Most recent reply
First Cincinnati OH Investment Progress
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Cincinnati.
Purchase price: $228,000
Cash invested: $20,000
Duplex in the Norwood neighborhood of Cincinnati purchased as a House Hack back in 2018. I have subsequently moved out and stabilized rents to near market rate along with handling deferred maintenance as well as improvements to the overall value of the property.
What made you interested in investing in this type of deal?
After discussing Real Estate strategies with my mentor, we decided a House Hack (didn't even know the term back then!) was the right way to deploy capital as the first step in Real Estate Investing.
How did you find this deal and how did you negotiate it?
Off market deal my realtor brought to me from one of his other clients. Negotiation was straightforward aside from some small adjustments in price as well as commission structure.
How did you finance this deal?
FHA Loan
How did you add value to the deal?
Property was owner occupied and rents were >50% below market rate. There was also a significant amount of deferred maintenance on the property. New HVAC was needed along with unkempt landscaping and other small issues due to the age of the house.
What was the outcome?
Gross rents have been increased by nearly $1,500/month and the property is now cashflow positive. Norwood is also an appreciating area so the equity in the house has jumped significantly.
Lessons learned? Challenges?
I've made a ton of mistakes and have occasionally felt I bit off more than I could chew but I have learned so much about deal with contractors, getting bids, assembling a team, and managing a property which has made me much more ready to scale my real estate investments.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Pete Kopf was an amazing realtor and I would highly recommend him to any investor in the Cincinnati area. He really has his finger on the pulse of the market.