Small multi-family (2-4 units) buy & hold investment in Toledo.
Purchase price: $135,000
Cash invested: $4,000
Four family building located in the Five Points neighborhood in West Toledo. This property was purchased through the utilization of a FHA loan. After seller closing credits and the real estate commission (I represented myself as the buyer's agent), I ended up brining less than $1,000 to the closing table. Before rents are raised I should be cash-flowng a little more than $200 per month to live in the property.
What made you interested in investing in this type of deal?
Utilizing the FHA loan option to purchase as many units as possible.
How did you find this deal and how did you negotiate it?
I located this deal on the MLS and represented myself as the buyer's agent.
How did you finance this deal?
How did you add value to the deal?
Will increase NOI through a combination of raising rents and splitting water/utilities amongst existing tenants.
What was the outcome?
Being paid to live in a 4 family building in a neighborhood that I actively invest in.
Lessons learned? Challenges?
FHA loan's can be a pain to close. We ended up extending the close date two seperate times in order to close the deal. I would allow more time to close (45 instead of 30 days) when writing any future FHA offers.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I represented myself and will do this as many times as possible moving forward.
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