Investing outside of my normal market
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $225,000
Cash invested: $52,000
Nice 2 bedroom 1 1/2 bath on one side and 3 bedrooms 1 1/2 bath on the other side. Nice ranch style in the suburbs of Dayton, Ohio.
What made you interested in investing in this type of deal?
Because of the lack of inventory and major price increases in Columbus, Ohio, I decided to look outside the area. The Dayton suburbs is a little more than an hour from Columbus, the prices are still decent and people are looking to live outside of Dayton in the suburbs.
How did you find this deal and how did you negotiate it?
My realtor sent it to me.
How did you finance this deal?
I went through a private lending institution. I was required to put 20% down.
How did you add value to the deal?
The property was rented on one side and ready to be rented on the other side, so there was nothing for me to do to add value.
What was the outcome?
I got the property for $25k below asking. I had a tenant ready for the empty side within one week.
Lessons learned? Challenges?
I probably could have gotten the property for a little less than I offered.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes. I worked with Brandon Wilcox in the Dayton area.
I didn't know Dayton that well, so I wanted to work with someone that knew the market.