All Forum Posts by: Payton Pearson

I'm going to be doing my first Airbnb in Dayton, Ohio this summer. This is all excellent information! So Airbnb has an app specifically for finding cleaners?

Investment Info:

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

Purchase price: $143,000
Cash invested: $37,000

This is a beautiful, 4-unit apartment complex in a stable rental market of Kettering, OH. All four units were renovated by the previous owner, who bought the property for $90,000 on a shortsale, 5 years prior.

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

As I was informed by my previous real estate agent, multi-unit properties are cash cows for those interested in investing in real estate long-term. This property is no exception. It's being rented (all four units) for well-below market rates of $525/month, yet still raking in $790/month of cashflow. After electrical, gas, and other expenses, the total net income is around $550/month, but with room for about $400/month of growth.

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

I found it through my real estate agent, Colleen Carr, who herself found it on the MLS. She took me out one day in November of 2018 to look at four separate 4-unit complexes. This one was head-and-shoulders above all the others in terms of quality and price point. It was already well below the price of the other properties and in much better shape, but Colleen was able to negotiate an additional $3k off the purchase price, and get $1500 at closing for various repairs.

How did you finance this deal?

25% down conventional loan for investment properties. 6% interest rate, due to credit checks from my previous home acquisition lowering my credit score slightly (could refinance later if we hit another low in the market!).

How did you add value to the deal?

So far I have ordered the repair of the vinyl siding, placed a metal dish under the water heater to prevent corrosion due to leakage, and plan on eventually re-paving the entirety of the driveway, garage, and sewer drains. Various other repairs are slated for later dates as well.

What was the outcome?

I purchased the property with some help from my parents, intentional co-investors in this property. They intend on carrying out this same process with me for 1 property per year, for the next 6 to 10 years.

Lessons learned? Challenges?

Getting started in real estate, like almost anything else worthy of your time, requires you to take action. You can't simply sit on the sidelines for years, researching. You get analysis paralysis doing that. Get a real education in the school of life. My down payment on this property was equivalent to 1 year in college, and it suited the education I received in so doing. For those afraid to start, as Shia Labeouf says, "DO IT! JUST... DOOOO EEEET!!!"

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

1. Real Estate Agent: Colleen Carr

I highly recommend Colleen to anyone trying to purchase properties in the Dayton area. She is very good at what she does. Ranked top 50 agents of the greater Dayton area.

2. Mortgage Broker: Phil Forbes

He has gotten me the very best mortgage rates possible thus far, and always finishes the mortgage process well ahead of closing.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $69,900
Cash invested: $12,000
Sale price: $71,500

This is my current residence. I'm going to Airbnb it, and renovate it over time. First order of business is replacing the backyard fence, which is falling apart.

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

It was my first ever property purchase. Based upon the first days of our great constitutional republic, before you could vote or participate in the goings on of government processes, you needed to own property. Additionally, this property was 0.3 miles away from my local church, priced right, in a decent working-class location, and relatively well-maintained. It was a good first purchase.

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

I found it on Zillow. I didn't really negotiate the price, which I regret slightly. Though it was a hot deal that many people were making offers on, and very quickly.

How did you finance this deal?

Conventional loan with 10% down. 3.85% interest.

Lessons learned? Challenges?

Find a real estate agent that works real estate for a living, rather than a hobby. The agent I worked with is someone I love and appreciate (she's a strong Christian and member of my community of churches), but not the best agent for negotiating. But who knows? I could be wrong and the decision was the best one that could have been made.

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

1. Current Real Estate Agent: Colleen Carr of Dayton, OH. She is incredibly good at what she does, and will do everything in her power to get you the best deals on the market for your business model.
2. Phil Forbes Mortgage Broker: He has consistently gotten met the best possible rates on mortgages, a morally upright man who is very competent at what he does.