My first buy and hold

[Kenny Hardcastle]

Investment Info:

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

Purchase price: $80,000
Cash invested: $20,000

This is my first purchase, a two-story duplex 2/1. I'm hoping to remodel the attic and turn the upstairs into a 3/2

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

My wife and I are looking at retiring early, we are maximizing our 401ks and IRAs but needed another vehicle for our cash flow. I was able to convince her that a cash flowing rental property would be helpful in our early retirement.

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

My real estate agent in Cleveland found it, as is only listed for a few hours. The seller was also the owner and negotiated herself down from her asking price. Was able to negotiate $5,000 more down from the asking after the inspection.

How did you finance this deal?

We had too much money in our emergency account, so in instead of investing we used it for the down payment and I was able to secure a conventional home loan on my own. Hoping my wife will see how it's a good deal and buy one soon on her own.

How did you add value to the deal?

I will be finishing the attic, installing mini splits to get rid of the window units. I will also be updating the cosmetics on the inside.

What was the outcome?

As I have recently just closed that is yet to be determined.

Lessons learned? Challenges?

What one seller markets as turnkey does not translate the same to a buyer. Do not buy in the summertime, as is hard to compete with other offers. I will also never find the perfect rental property on discount.

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

My real estate agent Ryan Reed has been phenomenal, while he doesn't 100% understand how to gauge cash flow he has been invaluable in helping me pick out the right neighborhoods to look at. He even went out of his way and wrote an offer in French as the seller only spoke French. While we did not get the property I did really appreciate this.