809-813 Melrose Avenue

[Walker Coggeshall]

Investment Info:

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

Purchase price: $165,000
Cash invested: $10,000

This Tri-plex had existing long term tenants with a history of paying rent. It was on a solid foundation and did not require too much work. I added HVAC to the two end units and fixed the water heater in the other. Each unit is a two bedroom 1 bath and they rent for $600 dollars a month.

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

I was interested in getting started on a property that did not require an intense amount of work but that would still cash flow nicely.

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

Being a real estate agent myself I used the MLS to find the property and offered to pay cash at a lower than asking value. After inspections I was able to get another $8,000 off the selling price to account for extra labor that would be needed to fix the place up.

How did you finance this deal?

I paid cash for the deal but will soon be refinancing the deal to buy other properties.

How did you add value to the deal?

I added value by installing HVAC units and updating the furnace systems.

What was the outcome?

So far everything is running smoothly. The tenants all pay on time and let me know when things are not working as they should.

Lessons learned? Challenges?

I learned that getting a second opinion about a quote can really save you a lot of money. A company told me I needed a new water heater and were going to charge $3,000. I got another company to come in and they told me the heater had tripped and all they needed to do was hit the reset button. If something doesn't feel right about a quote, trust your gut and get another.

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

I will be using Clear Mountain Bank out of West Virginia to refinance my deal. I have also had great experiences with local plumbers from City Plumbing in Ambridge.