All Forum Posts by: Kate Zieverink McMinn

Investment Info:

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

Purchase price: $198,000
Cash invested: $6,930

This is a HUGE brick duplex in Pleasant Ridge (a relatively hot, mostly residential Cincy neighborhood). The house is a block from the business district and across the street from a country club. Each unit is about 1,500 sqft. (2bed/1bath). A bit dated, but overall sound structure and mechanics. Separate utilities, separate laundry hookups, and divided basement. Renting downstairs unit at market rent and house hacking while we convert the large, unfinished 3rd floor into a 3rd unit.

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

This was an off market opportunity which is typically more attractive in our market. Seller had some sense of urgency, but no interest in taking to the MLS. Unique situation which required a lot of patience and some terms most investors wouldn't be interested in (extended closing timeline, rent-back to owner after close, etc). These "trade-offs" left a lot of room for value add.

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

Someone on our team had a relationship with the owner's family member who mentioned he would be open to selling. We presented the deal to a few of our own investors before I realized it would be a great fit for my personal portfolio. I knew what the seller needed to make, and negotiations were straight forward. Purchase price is well under appraised value, but we made it an easy, convenient deal for them.

How did you finance this deal?

FHA loan at 2.75% (UNREAL).

How did you add value to the deal?

Will be adding a 3rd unit. 1 unit at market rent already covers the mortgage, so plenty of room for cashflow.

What was the outcome?

Moving in next month to get started.

Investment Info:

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

Purchase price: $198,000
Cash invested: $6,930

This is a HUGE brick duplex in Pleasant Ridge (a relatively hot, mostly residential Cincy neighborhood). The house is a block from the business district and across the street from a country club. Busy street, but SOLID location for a rental. Each unit is about 1,500 sqft. (2bed/1bath). A bit dated, but overall sound structure and mechanics. Separate utilities, separate laundry hookups, and divided basement. We plan on some upfront cosmetic updates after closing. Renting downstairs unit at market rent (which should almost cover mortgage) and house hacking while we convert the large, unfinished 3rd floor into a 3rd unit.

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

This was an off market opportunity which is typically more attractive in our market. Seller had some sense of urgency, but no interest in taking to the MLS. Unique situation which required a lot of patience and some terms most investors wouldn't be interested in (extended closing timeline, rent-back to owner after close, etc). These "trade-offs" left a lot of room for value add.

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

Someone on our team had a relationship with the owner's family member who mentioned he would be open to selling. We presented the deal to a few of our own investors before I realized it would be a great fit for my personal portfolio. I knew what the seller needed to make, and negotiations were straight forward. Purchase price is well under appraised value, but we made it an easy, convenient deal for them.

How did you finance this deal?

FHA loan at 2.75% (UNREAL).

How did you add value to the deal?

Will be adding a 3rd unit. 1 unit at market rent already covers the mortgage, so plenty of room for cashflow.

What was the outcome?

Moving in next month to get started.

I'm 33 and have 2 rentals. Just completed our first duplex BRRRR and moving on to project #2 later this month (a duplex we will turn into a triplex). I'm a real estate agent and our team focuses on multifamily in Cincinnati. I bought my first deal at 32 and GC'd the renovation project while I was 4-8 months pregnant! You can do it... DO IT!

If I own a duplex by myself, a 4 family with a partner, and a 12 unit syndication with 3 other people... 

Do I own 18 doors?  

Do I own 7 doors (2 + 2 + 3)? 

Obviously ownership isn't split up this simply or evenly, but do all owners claim all doors in a partnership/syndication?  Kind of a silly question, but wondering what other people "claim" when discussing with other investors, friends, realtors, lenders, etc.  

Investment Info:

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

Purchase price: $180,000

Finally jumped in to our first deal!! Owner occupying this 3-family in a great location– practically on top of Eden Park and about 5 min from the city. We found this off market and plan to hold onto it. The property cash flows as-is (we're living for free with some pocket change left over) but it needs a lot of work to maximize potential. Living downstairs and fixing it up as we go. Plan to renovate the two upstairs units in the spring and re-rent or AirBNB.

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

This was one of our listing leads, but he was not interested in bringing it to the MLS. After quietly shopping it out to some of our investors, it became apparent that it was uniquely positioned for an active owner-occupant. We made an offer and negotiated for several months before coming to terms.

How did you finance this deal?

VA loan

How did you add value to the deal?

As an agent, I offered reduced commission (I took a 4% commission instead of the 6% he would pay if he officially listed). I then put that commission immediately back into the house.

Lessons learned? Challenges?

With a VA loan, we have almost no equity in the house. This makes financing the renovation a challenge because most programs and incentives in our area seem to be equity based. Currently working through the best approach for financing the renovation.