1st Multi-family Investment!!

[Taylor Campbell]

Investment Info:

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

Purchase price: $122,150
Cash invested: $18,500

My 1st "Deal Deep Dive"
- Property type: side-by-side conventional duplex built in 1976, 2080 sq. ft.
- Acquisition: Asking $119,500. Purchased $122,150, 15% down. Financed with conventional 30 year fixed mortgage @ 4.375%
- Initial repairs: minor (

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

Good location (near hospital I worked for), great price (good for cash flow).

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

Zillow, negotiated via my real estate agent against 1 other buyer. Asking was $119,500 and I purchased for $122,500 with 50/50 closing costs.

How did you finance this deal?

30 year fixed-rate mortgage, 15% down.

How did you add value to the deal?

Plan on performing cosmetic repairs to both units including: new paint (walls, ceilings, trim, closets, doors), new appliances, new floor, painted cabinets vs. replace with open shelving, new counter-tops & backsplash.

What was the outcome?

Still holding. Planning on performing repairs and obtaining ARV appraisal, then possibly refinancing vs. selling vs. continuing to hold.

Lessons learned? Challenges?

Better tenant screening. Anticipate holding costs (it takes time to find a good tenant!).

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

Looking for a contractor in the Akron/Canton or Cleveland area of Ohio!