Columbus OH INF CoC Return

[Austin Steed]

Investment Info:

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

Purchase price: $85,000
Cash invested: $1

Columbus OH Duplex INF CoC complete!

Purchase price - 85k
Renovations - 115k
Lender cost - 16k
Appraised value - 325k

I pulled out 70% ltv at 3.625 interest rate and paid myself just under 10k to obtain this Dublex! I rent out both sides for $2,060 a month and my months PITI is $1,117.

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

Tax abatements! If you pull permits in Columbus and do a major renovation you can lock in the current taxes for 15 years. My current taxes are $196 annually and I am in the process of getting that set in stone for 15 years. This helps the numbers work well on this one. Also driving park wasn't already turned in Columbus Oh. However Southern Orchards which is just West of DP already was seeing some serious movement. So I wanted to take a risk and go a little bit more East and it paid off!

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

I cold called the seller. He wasn't the nicest at first but after some follow up he offered me this property out of his portfolio.

How did you finance this deal?

Hard money, which was quite expensive, and then I got a 30 year fixed residential loan for my cash out re fi.

How did you add value to the deal?

I used the hard money's lender scope of work. After a major renovation I feel much more prepaired to calculate rehab cost. I'm hoping to keep growing in this area.

What was the outcome?

After I cashed out I paid my self over 10k. Eash side is rented for $1030 and my PITI is $1117. So gross rents are $2,060 and my mortgage is $1117.

Lessons learned? Challenges?

FIREWALLS on doubles. Anytime that you demo ceilings where you can see on one side to another, that will all need to have a 1 hour fire rating. This can get quite expensive.

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

Fund that Flip for Hard money. And First Ohio Finance for the permanent financing.