First rental in Lakewood Ohio

[Lars Andersson]

Investment Info:

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

Purchase price: $170,000
Cash invested: $40,000
Sale price: $338,000

Paid more than I should have, but rented for 16 years without any gaps between renters. Only one bad renter in those years

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

First rental.. I had no experience

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

Realtor

How did you finance this deal?

20 year conventional

How did you add value to the deal?

Kitchen/bathroom remodels (myself).. vinyl siding

What was the outcome?

Used for a 1031 exchange.. Lakewood Ohio turned into a very hot market

Lessons learned? Challenges?

Run it like a business.. in my early days I spent to much on "extras" and incentives for renters.

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

No