New to Real Estate, Closing on first Multifamily

New to Real Estate, Closing on first Multifamily

Member since 2025 · 2 posts · 5 votes

My name is Mitchel Quinn and I would like to get a good foothold in the door of real estate to get on the right path and stay there. My girlfriend and I have been looking at properties over the last couple of months due to life situations changing and having a decent chunk of change saved for a down payment. We walked through a property that we went into thinking we were not going to like it and we ended up loving it and jumping on it pretty quickly after because the seller was getting other cash offers and the price/location/set-up of the property just fit our situation well. The price we thought was very reasonable in this current market based off the other properties we have seen prior to that with similar layouts. We would be incurring the tenants in one half and would live in the other half ourselves. Currently we are finalizing paperwork and figuring out what insurance we need and just trying to figure everything out all at once. I would love to just put my mind at ease with a little more knowledge and pointers as to how we can start out as strong as possible. Thank you for your time.

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Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
1y
Quote from @Mitchel Quinn:

My name is Mitchel Quinn and I would like to get a good foothold in the door of real estate to get on the right path and stay there. My girlfriend and I have been looking at properties over the last couple of months due to life situations changing and having a decent chunk of change saved for a down payment. We walked through a property that we went into thinking we were not going to like it and we ended up loving it and jumping on it pretty quickly after because the seller was getting other cash offers and the price/location/set-up of the property just fit our situation well. The price we thought was very reasonable in this current market based off the other properties we have seen prior to that with similar layouts. We would be incurring the tenants in one half and would live in the other half ourselves. Currently we are finalizing paperwork and figuring out what insurance we need and just trying to figure everything out all at once. I would love to just put my mind at ease with a little more knowledge and pointers as to how we can start out as strong as possible. Thank you for your time.


 The best thing you can do is buy. You can mitigate risk along the way. Good pro tip is to not tell the tenants you're moving into next door that you're the owner but just affiliated with the property manager.

Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 728 votes
    1y
    Quote from @Mitchel Quinn:

    My name is Mitchel Quinn and I would like to get a good foothold in the door of real estate to get on the right path and stay there. My girlfriend and I have been looking at properties over the last couple of months due to life situations changing and having a decent chunk of change saved for a down payment. We walked through a property that we went into thinking we were not going to like it and we ended up loving it and jumping on it pretty quickly after because the seller was getting other cash offers and the price/location/set-up of the property just fit our situation well. The price we thought was very reasonable in this current market based off the other properties we have seen prior to that with similar layouts. We would be incurring the tenants in one half and would live in the other half ourselves. Currently we are finalizing paperwork and figuring out what insurance we need and just trying to figure everything out all at once. I would love to just put my mind at ease with a little more knowledge and pointers as to how we can start out as strong as possible. Thank you for your time.

    Hey @Mitchel Quinn, welcome to the BP Forum! Do you mind putting some numbers to your narrative?

  • Lender · TX · Member since 2024 · 308 posts · 198 votes
    1y

    Congrats on the purchase! House hacking a duplex is a solid way to get started in real estate while keeping your living costs low. Since you're wrapping up paperwork, make sure your lease terms are solid, get the right insurance (landlord + homeowner), and set aside some cash for future repairs. Best of Luck!

  • Specialist · MI · Member since 2024 · 49 posts · 11 votes
    1y

    Welcome to BP and congrats on your close, Mitchel!

  • Member since 2025 · 2 posts · 5 votes
    1y
    Quote from @Jaycee Greene:
    Quote from @Mitchel Quinn:

    My name is Mitchel Quinn and I would like to get a good foothold in the door of real estate to get on the right path and stay there. My girlfriend and I have been looking at properties over the last couple of months due to life situations changing and having a decent chunk of change saved for a down payment. We walked through a property that we went into thinking we were not going to like it and we ended up loving it and jumping on it pretty quickly after because the seller was getting other cash offers and the price/location/set-up of the property just fit our situation well. The price we thought was very reasonable in this current market based off the other properties we have seen prior to that with similar layouts. We would be incurring the tenants in one half and would live in the other half ourselves. Currently we are finalizing paperwork and figuring out what insurance we need and just trying to figure everything out all at once. I would love to just put my mind at ease with a little more knowledge and pointers as to how we can start out as strong as possible. Thank you for your time.

    Hey @Mitchel Quinn, welcome to the BP Forum! Do you mind putting some numbers to your narrative?


    Sure thing. The property listed for 200k, so we talked them down to 190k and they are covering 2k of down payment. The property then appraised for 190k which was good news since we didn't overspend. The down payment is being estimated by our loan officer currently, but we are thinking around 12k which will leave us with around 6-7k leftover from what we had put aside. We were approved for 300k FHA or 200k conventional loan so we decided to use conventional. Inspection was average for the age of the house around 90 years old. No major red flags, mostly small fixes to start out and I am pretty handy. Biggest thing I think would be replacing the galvanized plumbing in somewhat near future (1-2 years). For the layout and having 1 bath 1 kitchen each, I am guestimating the repairs maybe 6k each unit if I did not do it myself/with friends since I have plumbing experience. Most other things in the property seem like they can be fixed/replaced as we see fit or as they start to go out (knock on wood). Appliances estimated lifespan around 5 years and similar life I'd call out for the tenants furnace. The roof and our unit's furnace replaced 5 years ago. The property is in Cuyahoga county Ohio which I believed was a decent area to start out due to the population and amount of things to do in the general area. Insurance companies and car dealerships and plenty of other consumer businesses close by. Close enough to Cleveland around 30 minute drive. The tenants currently rent for $950 which was their stagnant rate the last few years. Thinking of upping that to $1,000-1,050 to start out their lease, which we are still figuring out currently. That would offset about 2/3rds of the mortgage payment. For the few years tenants have been there the interior of their unit looked well kept, so they seem to take care of it. Hopefully this info sheds some more light on what I think was a good 1st time purchase.

  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 728 votes
    1y
    Quote from @Mitchel Quinn:
    Quote from @Jaycee Greene:
    Quote from @Mitchel Quinn:

    My name is Mitchel Quinn and I would like to get a good foothold in the door of real estate to get on the right path and stay there. My girlfriend and I have been looking at properties over the last couple of months due to life situations changing and having a decent chunk of change saved for a down payment. We walked through a property that we went into thinking we were not going to like it and we ended up loving it and jumping on it pretty quickly after because the seller was getting other cash offers and the price/location/set-up of the property just fit our situation well. The price we thought was very reasonable in this current market based off the other properties we have seen prior to that with similar layouts. We would be incurring the tenants in one half and would live in the other half ourselves. Currently we are finalizing paperwork and figuring out what insurance we need and just trying to figure everything out all at once. I would love to just put my mind at ease with a little more knowledge and pointers as to how we can start out as strong as possible. Thank you for your time.

    Hey , welcome to the BP Forum! Do you mind putting some numbers to your narrative?


    Sure thing. The property listed for 200k, so we talked them down to 190k and they are covering 2k of down payment. The property then appraised for 190k which was good news since we didn't overspend. The down payment is being estimated by our loan officer currently, but we are thinking around 12k which will leave us with around 6-7k leftover from what we had put aside. We were approved for 300k FHA or 200k conventional loan so we decided to use conventional. Inspection was average for the age of the house around 90 years old. No major red flags, mostly small fixes to start out and I am pretty handy. Biggest thing I think would be replacing the galvanized plumbing in somewhat near future (1-2 years). For the layout and having 1 bath 1 kitchen each, I am guestimating the repairs maybe 6k each unit if I did not do it myself/with friends since I have plumbing experience. Most other things in the property seem like they can be fixed/replaced as we see fit or as they start to go out (knock on wood). Appliances estimated lifespan around 5 years and similar life I'd call out for the tenants furnace. The roof and our unit's furnace replaced 5 years ago. The property is in Cuyahoga county Ohio which I believed was a decent area to start out due to the population and amount of things to do in the general area. Insurance companies and car dealerships and plenty of other consumer businesses close by. Close enough to Cleveland around 30 minute drive. The tenants currently rent for $950 which was their stagnant rate the last few years. Thinking of upping that to $1,000-1,050 to start out their lease, which we are still figuring out currently. That would offset about 2/3rds of the mortgage payment. For the few years tenants have been there the interior of their unit looked well kept, so they seem to take care of it. Hopefully this info sheds some more light on what I think was a good 1st time purchase.

    @Mitchel Quinn I'm curious why you'd go with a conventional loan when your eligible for an FHA loan? Either way, I ran a proforma and this looks like a good deal (as long as you don't have too much in the way of rehab/maintenance costs).

    Also, IMO, you can probably raise rents even higher. While I'm not sure what zip code this property is in, the average FMR for the Cleveland MSA for a 2 BR unit is $1,255.

  • Real Estate Broker · Cleveland, OH · Member since 2023 · 49 posts · 32 votes
    1y

    I'd have suggested a down payment assistance program for your first purchase. Harder to qualify for cheap/free money as you collect more homes. Maybe wasn't a possibility given the competitiveness of the situation. As a mortgage broker, I've got a 100% financing down payment assistance grant that allows for owner occupants to purchase a duplex. See image below with more details. Alternatively, OHFA's down payment assistance might work - not sure if it allows for duplexes. Also, it's not a grant. Ask your loan officer if you qualify. For a 30 year Conventional loan, I'm at 6.5% rate (6.808% APR) for a duplex, 95% LTV, 780+ FICO, owner occupant.

    And I'm assuming they're paying $2k of your closing costs - not your down payment. Down Payment + Closing Costs = Cash to Close.

    For your purchase contract, I'd have suggested an escalation clause requiring proof of next best offer upon acceptance. Real estate agents in Ohio aren't allowed to lie about receiving other offers that don't exist, but I've seen it happen before. Escalation clause is an attempt to combat that potential lie. That, and escalation clause prevents you from just blindly offering your best offer out of the gate. The Seller/Listing Agent could've countered the escalation, but that's usually a "tell" to the strength of the competing offers. 

    And best of luck on your first one. Go get your next one in 12 months!

  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1y
    Quote from @Mitchel Quinn:

    My name is Mitchel Quinn and I would like to get a good foothold in the door of real estate to get on the right path and stay there. My girlfriend and I have been looking at properties over the last couple of months due to life situations changing and having a decent chunk of change saved for a down payment. We walked through a property that we went into thinking we were not going to like it and we ended up loving it and jumping on it pretty quickly after because the seller was getting other cash offers and the price/location/set-up of the property just fit our situation well. The price we thought was very reasonable in this current market based off the other properties we have seen prior to that with similar layouts. We would be incurring the tenants in one half and would live in the other half ourselves. Currently we are finalizing paperwork and figuring out what insurance we need and just trying to figure everything out all at once. I would love to just put my mind at ease with a little more knowledge and pointers as to how we can start out as strong as possible. Thank you for your time.

    Congrats Mitchel!  House hacking is the BEST way to get started in real estate investing! Stoked for you and your journey to financial freedom. See you at the top!

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    1y
    Quote from @Mitchel Quinn:

    My name is Mitchel Quinn and I would like to get a good foothold in the door of real estate to get on the right path and stay there. My girlfriend and I have been looking at properties over the last couple of months due to life situations changing and having a decent chunk of change saved for a down payment. We walked through a property that we went into thinking we were not going to like it and we ended up loving it and jumping on it pretty quickly after because the seller was getting other cash offers and the price/location/set-up of the property just fit our situation well. The price we thought was very reasonable in this current market based off the other properties we have seen prior to that with similar layouts. We would be incurring the tenants in one half and would live in the other half ourselves. Currently we are finalizing paperwork and figuring out what insurance we need and just trying to figure everything out all at once. I would love to just put my mind at ease with a little more knowledge and pointers as to how we can start out as strong as possible. Thank you for your time.


     Holla.

  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y

    Congrats on the first deal! I would start keeping track of everything that you've had/have to do while owning/acquiring this property. Always ask yourself if there's a way to systemize the different tasks you come across. 

    The more you can systemize the process, the more time you'll have to work on the next deal or venture.  

  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    1y
    Quote from @Mitchel Quinn:

    My name is Mitchel Quinn and I would like to get a good foothold in the door of real estate to get on the right path and stay there. My girlfriend and I have been looking at properties over the last couple of months due to life situations changing and having a decent chunk of change saved for a down payment. We walked through a property that we went into thinking we were not going to like it and we ended up loving it and jumping on it pretty quickly after because the seller was getting other cash offers and the price/location/set-up of the property just fit our situation well. The price we thought was very reasonable in this current market based off the other properties we have seen prior to that with similar layouts. We would be incurring the tenants in one half and would live in the other half ourselves. Currently we are finalizing paperwork and figuring out what insurance we need and just trying to figure everything out all at once. I would love to just put my mind at ease with a little more knowledge and pointers as to how we can start out as strong as possible. Thank you for your time.


     The best thing you can do is buy. You can mitigate risk along the way. Good pro tip is to not tell the tenants you're moving into next door that you're the owner but just affiliated with the property manager.

    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
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