Rental Property Investor · Teaneck, NJ · Member since 2016 · 567 posts · 291 votes
Wanted to share ... just signed contract for 46 units in Cincinnati this week.
Some information on the property ... It is a 46 units Class C+ apartment building located in Cincinnati Ohio, the property is 87% occupied and stabilized asset with several value add opportunities. The building was build in 1915, but fully renovated in 2010. The building consists of:
10 studios
26 one bedroom units
10 two bedroom units
The property is very conveniently located a short walk away from University of Cincinnati, couple of Hospitals in the area, shopping mall (Amazon, Target, Chase, Starbucks, Chipotle, Panera Bread, CVS, Walgreen, Kroger Supermarket) and 10 minutes drive away from Downtown. It is also minutes away from I-75 which is providing easy commute within Cincinnati and for traveling outside of the city.
Very exited to start Due Diligence process on it ...
Congrats! @Oleg Shalumov, it seems you are investing from OOS, I'd love to hear how you found this deal, how you are planning to finance it, and is there alot of renovations that need to be done?
What type of things will you be looking for in DD?
Rental Property Investor · Teaneck, NJ · Member since 2016 · 567 posts · 291 votes
7y
@Heshel Mangel I been working with few brokers for some time in each of the cities in Ohio (Cincinnati, Columbus, Cleveland, Akron). Once you are working with the brokers directly and they see good feedback from you, you get off market properties from them.
We are planning to take Agency loan in the property, and the remaining 20-25% will be partially funded by me, and remaining raised from the investors in my network.
Not a lot of renovation, but some improvements to the units can help us increase the rent and add value to the property. Also, would need to put a good property manager as property currently occupied by 85%.
There are several DD list out there you can use (for example Old Capital have one on their website), but message me if you want me to send you what I am using.
Syndication Expert and Investor · Indianapolis, IN · Member since 2016 · 591 posts · 808 votes
7y
@Oleg Shalumov Congrats on getting a deal under contract in Cinci.
What is your plan to manage the asset? Is there enough in the budget for onsite staff or is it too small for revenue to support? I assume 3rd party management or ?
@Frank Geiger we tried to underwrite this very conservatively, I will message you return numbers. We should be done with the improvements within first 2 years, and we are planning to hold the property for 5 years and then either sell or refinance (depending on market conditions of that time) the loan.
Rental Property Investor · Teaneck, NJ · Member since 2016 · 567 posts · 291 votes
7y
@Spencer Gray I was looking for 70+ units property which would allow us to have on-site management, but sometimes (I would actually say very often :-) you do not get what you want. This was a good opportunity and we did not want to miss it even that we would not have the on-site PM.
Rental Property Investor · Columbus, OH · Member since 2015 · 344 posts · 258 votes
7y
Oh wow, that's awesome! What are some of the improvements you plan on doing? I'm always interested to see how investors add value to properties. Where the money is made! And on the purchase, of course!
Congrats! @Oleg Shalumov, it seems you are investing from OOS, I'd love to hear how you found this deal, how you are planning to finance it, and is there alot of renovations that need to be done?
What type of things will you be looking for in DD?
Thanks and much success!
Me, too! Was Cincinnati always on your OOS radar?
For multiple reasons I am 1031x ing out of WA and looking for a 50ish unit OOS myself. Congrats and thanks!
Oh wow, that's awesome! What are some of the improvements you plan on doing? I'm always interested to see how investors add value to properties. Where the money is made! And on the purchase, of course!
Most of the value add is light rehab and rent increase also improving the vacancy. Most of the properties in the area are almost fully occupied.
Congrats! @Oleg Shalumov, it seems you are investing from OOS, I'd love to hear how you found this deal, how you are planning to finance it, and is there alot of renovations that need to be done?
What type of things will you be looking for in DD?
Thanks and much success!
Me, too! Was Cincinnati always on your OOS radar?
For multiple reasons I am 1031x ing out of WA and looking for a 50ish unit OOS myself. Congrats and thanks!
I was mostly focusing on Cincinnati and Columbus, but was open for all of locations in Ohio.
Specialist · Member since 2019 · 49 posts · 26 votes
7y
@Oleg Shalumov. Congrats! I’m from Cincy and went to tOSU and now live in Northern NJ, small world. I was in Cincy last week and saw bandit signs everywhere. The UC market should be good to you and you could potentially Air B&B units that are only occupied for the school year that is if you allow non full year lease terms.