All Forum Posts by: Peter Needham

Investment Info:

Large multi-family (5+ units) commercial investment investment in Akron.

Purchase price: $130,000
Cash invested: $150,000
Sale price: $230,000

6 unit apartment complex in Akron OH

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

Great cashflow as well as a good flip opportunity once the units got remodeled.

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

I found it through a network of investors in Ohio. An investor got in over his head and just wanted out of it and was willing to sell it to me at a discounted price

How did you finance this deal?

Capital investor. He brought the cash and we split profits 50/50

How did you add value to the deal?

We immediately dumped about 20k into the outside of the building; windows, landscaping, lights and paint for the decks and stairs. Over the next year and a half we took half of the monthly cash flow and started doing repairs to each unit as the tenants moved out and bumped up the rents.

What was the outcome?

Sold the property after all units had been rehabbed and filled with great qualified tenants and sold it for $230k

Lessons learned? Challenges?

Being patient with the property and understanding that we could manipulate the value if we took our time and did the rehabs and work correctly at the right time.

Investment Info:

Other buy & hold investment in Akron.

Purchase price: $233,000
Cash invested: $233,000
Sale price: $330,000

Bought a SFR portfolio and held the properties for 3 years holding on an average of an 18.5% ROI.

We sold and make a small profit of $97,000 in the sale.

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

Great cashflow and gave me a lot of flexibility to be able to use and leverage this portfolio to expand my overall portfolio.

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

It was a pocket listing from one of my real estate agents that I work with regularly.

How did you finance this deal?

I used a capital investor that financed the whole thing for an equity split.

How did you add value to the deal?

Since the properties were already in great shape we didn't have to do much. We focused on being high quality landlords and providing amazing service to our tenants. Every year when we would up their rents they had no problem with it because they knew we would take care of them and fix and issues immediately. By doing that we raised rents a total of $300 per property over the whole time I owned the properties.

What was the outcome?

We sold for a $97,000 profit while maintaining a 18.5% ROI on average for 3 years.

Lessons learned? Challenges?

Take care of your tenants and really care about their welfare and they will take care of your property and you.

Investment Info:

Other buy & hold investment in Akron.

Purchase price: $28,000
Cash invested: $28,000

Duplex that we picked up and invested an additional $10,000 into to get in rentable shape. Filled within 2 months and have had a total of 4 different tenants in place.
We rent each side out for $650 a piece and had an average of $450 in expenses for both sides. We clear about $12,000 a year on it. Made our money back after the second year and are in profit mode since then.

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

Cash Flow

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

With my realtor that was helping me sell a property we picked up at a tax deed sale in Summit County Ohio

How did you finance this deal?

Equity partner. He fronted the money and we split profits 50/50

How did you add value to the deal?

We did some immediate capital improvements and immediately fixed small maintenance issues that raised the value of the rents from $450 a unit when we bought it to $650 a month currently.

What was the outcome?

Cash positive and continue to profit off of this Duplex.

Lessons learned? Challenges?

A good deal doesn't have to cost a lot or be in an "great" area. All you need is quality tenants and a great management company that you trust to make good money anywhere.