All Forum Posts by: Chad Riley

Hello Craig,

Thanks for the reply.  The property needs a little rehab on the parking areas (broken up asphalt over years of use)

Also some concrete steps around the entrance and patios need some new masonry work to keep it from further deterioration.  Other then that its a solid long term cash flowing property that has had new roof and new interior updates in the last 2-3 years.  

Chad Riley 

Hello BP friends! 

I'm currently in contract to purchase an 8 unit apartment building in downtown Columbus, Ohio.  I'm looking for great commercial lenders in the Ohio area.  Like to start a relationship with some lenders who understand the multifamily market and could help finance this deal.  I'm looking to put 25-30% down also on this deal.  Thanks for any tips and help with finding a lender in Ohio!  :)
  

Investment Info:

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

Purchase price: $350,000
Cash invested: $85,000

Remodel of basement on a single family home in downtown Coeur d' Alene to create a duplex that rents as long term and short term through AIRBNB. Great investment and cash flow.

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

Location and potential upsides with finishing basement with separate entrance and making it into a duplex.

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

Found the deal from a sign in front yard from the owner. It was a For sale by owner. Which helped make the deal easier to negotiate and get a fair price.

How did you finance this deal?

Personal cash saved up and invested.

How did you add value to the deal?

I finished and built out the entire basement and made a 2bedroom 2bath apartment with separate entrance.

What was the outcome?

During the construction in basement I was renting the top portion of the home out which is a 3bd / 2ba home through AIRBNB. After completing I rented the basement unit out to a single lady with a 1 year lease and now month to month. I continue to rent the upper unit out through Airbnb and its doing amazing having both year long lease in one unit and short term rentals on the other unit.

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

I worked with a local lender at Willamette Valley Bank to get the loan.

Investment Info:

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

Purchase price: $350,000
Cash invested: $85,000

Duplex

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

Location and potential upsides with finishing basement with separate entrance and making it into a duplex.

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

Found the deal from a sign in front yard from the owner. It was a For sale by owner. Which helped make the deal easier to negotiate and get a fair price.

How did you finance this deal?

Personal cash saved up and invested.

How did you add value to the deal?

I finished and built out the entire basement and made a 2bedroom 2bath apartment with separate entrance.

What was the outcome?

During the construction in basement I was renting the top portion of the home out which is a 3bd / 2ba home through AIRBNB. After completing I rented the basement unit out to a single lady with a 1 year lease and now month to month. I continue to rent the upper unit out through Airbnb and its doing amazing having both year long lease in one unit and short term rentals on the other unit.

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

I worked with a local lender at Willamette Valley Bank to get the loan.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $350,000
Cash invested: $88,000

5 Bedroom, 2 bath home, fenced yard and detached garage.

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

I really loved this location and being walking distance to the lake and city attractions. This has made for a great Airbnb rental for the past two years.

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

This was a deal that I found from a friend who owned the property and wanted to sell it to get money for another home purchase and they were tired of dealing with managing an Airbnb.

How did you finance this deal?

I ended up financing this with my IRA investments I had saved up over the years. I heard about doing something called a "Self Directed IRA" and took money out of my slow growing investments in the stock market and turned it into this home that is doing much better and continues to pay itself down over time. Its not super easy to do a Self Directed IRA but I'm glad I tried and got this home under my belt.

How did you add value to the deal?

I upgraded some of the interior furniture, did some painting and also added a seating area and picnic table in the backyard for summer guests to enjoy. It came fully furnished and in pretty good condition already. My next project is to remove the chain link fence in the front and add a nice white picket fence to add to the old craftsman charm. (I hate chain link fences!!)

What was the outcome?

Its been a great experience and I've had nothing but 5 star reviews on AIRBNB and people love the home. Its an old home built in 1920 so I have to keep an eye on some cap ex things that might pop up in the near future.

Lessons learned? Challenges?

The challenge here was getting all my ducks in a row and paper work lined up to legally and safely pull my funds out of my IRA and turn it into capital to invest into this property. I'm not sure if I would do it again but I'm glad at the moment I did. I enjoy having a better look at my investments and knowing what they are doing.

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

I worked with Sarah Cline who was the realtor / listing agent and the home owner as well. http://www.sarahclinerealty.com/