48 Unit Acquisition - Cleveland, OH

[Michael Orlando]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Elyria.

Purchase price: $2,025,000

This deal is a 48 unit complex in a C class suburb outside of Cleveland, OH. The complex has 2 and 3 bed unit and we are currently undergoing the value add process.

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

We love large multifamily! As we build towards 500 units we're looking to keep increasing our deal size. Also, we sourced this deal off market and got it for an incredible price with tons of upside!

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

This deal came from a cold call. After contacting the seller, we had a few conversations about the property, obtained the financials, and made an offer that was ultimately accepted. Thankfully, the seller was pretty motivated.

How did you finance this deal?

We financed this through a local bank obtaining 80% LTV on the property and financing 100% of the renovations through the bank. This type of debt allowed us to bring way less cash to the table for renovations and therefore, increased our partners cash on cash returns significantly.

How did you add value to the deal?

We're currently doing major cosmetic updates including fresh paint, new carpet and LVT throughout the unit, adding cabinet hardware, new countertops, sink and pull out faucets. We're also doing all bathrooms with new flooring, shower fixtures, vanities, light fixtures and toilets. In addition, we're submetering the water which will eliminate a huge expense for us over time and significantly increase NOI.