All Forum Posts by: Derrick Deese

Currently investing in Columbus, and have been since 2018.  Been a great market for myself and partners.  Like @Remington Lyman said wishing had been more aggressive earlier, but hindsight is 20/20.  

One thing I wish we knew was how to properly manage vendor relationships, as they can make or break some of your financials.
Best of luck to you! 

That quote seems reasonable for the work that is required and the fast turnaround.  I have done some demos myself, and they end up being more tedious than I expected.  You can always give it a go yourself as well to save some money (then call in for finishing items).  Best of luck! 

My personal preference is HELOC. The main reason is that it allows you to in essence have a line of credit on standby that allows you to search for different deals and not have the "holding cost" vs. a cash out refi, which puts cash in your hand and if you have no deal it will sit there. Cash has an opportunity cost and unless you have something in hand, it likely may not make sense. That is one persons' opinion (and one that I have used) vs. a cash out. Also, from a psychological perspective, I believe not having cash burning hole in pocket is better vs. having a line that is no different than a credit card.

Good luck in your decision!

@Marc Rice columbus is treating me well so far, good stabilized cash flow, lots of value add opportunities.  Getting more competitive but to be expected! 

@Will Fraser the seller had previously listed on the MLS then removed the listing. I searched the Franklin county property records and found the seller, then started googling the name + email or cell phone. The renovation for the side that turned over was mostly cosmetic and was ~$5K labor+materials.

@Marc Ricethis was in the east moor neighborhood. 

@Remington Lyman thank you!

@Steven wilson I agree on the off market deals. 

@Christopher Hillthank you, keep at it!

@Steven Foster Wilsonundefined

@Collin Schwartz this is an amazing story congrats on the success. 778 units in 4 years is amazing!!

@Dominique B. Congrats on the first purchase!

This is great information on the Cincinnati area.  I currently invest in Columbus OH but am looking to expand into Cincinnati.  The neighborhood information is very helpful! 

Investment Info:

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

Purchase price: $125,000
Cash invested: $31,250

3BR / 1.5 BA Duplex acquisition. Renovated one side and increased rents $175. Will renovate the other side to increase rents as well.

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

Cash flow potential and appreciating area.

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

Off market deal, texted the owner and went into contract via text.

How did you finance this deal?

Conventional mortgage

How did you add value to the deal?

Renovating units - updated paint throughout, updated bathroom tile, fixtures, vanity, exterior curb appeal. Will update windows and roof at later time.

What was the outcome?

Closed and fully occupied!

Lessons learned? Challenges?

Off market deals take more effort, but can potentially be more fruitful!

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

NFM Lending was the lender and had a smooth process for this particular transaction.

@Marcus Auerbach I would throw in Shoreline.  Personal experience - my wife and i bought a property here as primary residence that needed some rehab.  We were comfortable doing the rehab and got to pick the finishes we wanted AND also (based on redfin estimates which i know are not always totally right), have already seen upside.  With the light rail pending and some more migration out of Seattle, we feel there is upside in the purchase.  Additionally, Shoreline is good for families (our cul de sac has about 20 kids of all ages living there) and the school system is good as well.  Relatively "affordable" vs. other areas that are mentioned above. Not sure the comfort level of rehabs but if they're willing to do that, there are several options in Shoreline area that can provide some value. 

For reference, the specs on our house are 3BR, 2.75BA, 1800 sq ft.  There is a bonus room in garage (I plan on using as gym), 7500 sq ft lot.  We have a 2.25 y/o son and expecting another on the way, and this space is more than enough for our family today (we lived in a 1BR/1.5 BA 987 sq ft until now, so this is a nearly double!)