All Forum Posts by: David Greathouse

Id assume the inventory is low there as it seems to be everywhere, but my guess is your price is too high.  I look at the number of showings I am getting and then adjust accordingly.  If you're not getting showings at all, something is way wrong!  If you are and aren't getting offers, you need feedback from the agents that have showed it.  That way you can review them with your seller and discuss strategy.  Rely on those agents who have seen it and ask them for advice.

Investment Info:

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

Purchase price: $140,000
Cash invested: $48,000

Purchased our first multi-family long term hold. Off market deal through our existing realtor network.

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

Off market deal well below market value at the time. Fully occupied and cash flow was too good to pass up.

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

Deal was presented to us by another agent in our brokerage. It was negotiated off market.

How did you finance this deal?

Conventional financing through Huntington directly into our LLC.

How did you add value to the deal?

Freshened up interior paint and some exterior siding projects.

What was the outcome?

Gross income is $1900/month and net income is roughly $550/month.

Lessons learned? Challenges?

Existing tenants posed some unique challenges. Replaced one set of acquired tenants and boosted rent up an additional $100/month with new tenants I screened myself.

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

We brokered our side of the deal ourselves as we are licensed agents in Ohio.

I'd say location is key....you need to know where buyers are moving to in your area.  Here in Cleveland, I have noticed a migration from one part of town to another and so I see lots of investors looking for cheaper homes in that location.  It pays to know the stats of where people want to live

I'd say lack of inventory has forced prices up and the older homes in Ohio make me nervous.

I've had some success with clients here in Cleveland

RENTOMETER...I paid for it though.  

Most good agents are going to have comps for similar rentals using things like the MLS or rentometer. Nothing is ever guaranteed but thats pretty good data to estimate what you will receive. Also, I'd imagine you might lose your Earnest Money if you don't have just cause to cancel.