Owner Occupied 3 Family – Eden Park
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Cincinnati.
Purchase price: $180,000
Finally jumped in to our first deal!! Owner occupying this 3-family in a great location– practically on top of Eden Park and about 5 min from the city. We found this off market and plan to hold onto it. The property cash flows as-is (we're living for free with some pocket change left over) but it needs a lot of work to maximize potential. Living downstairs and fixing it up as we go. Plan to renovate the two upstairs units in the spring and re-rent or AirBNB.
How did you find this deal and how did you negotiate it?
This was one of our listing leads, but he was not interested in bringing it to the MLS. After quietly shopping it out to some of our investors, it became apparent that it was uniquely positioned for an active owner-occupant. We made an offer and negotiated for several months before coming to terms.
How did you finance this deal?
VA loan
How did you add value to the deal?
As an agent, I offered reduced commission (I took a 4% commission instead of the 6% he would pay if he officially listed). I then put that commission immediately back into the house.
Lessons learned? Challenges?
With a VA loan, we have almost no equity in the house. This makes financing the renovation a challenge because most programs and incentives in our area seem to be equity based. Currently working through the best approach for financing the renovation.