Updated almost 6 years ago on . Most recent reply
Triplex in Lakewood, OH
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Lakewood.
Purchase price: $150,000
Cash invested: $29,000
First property. My husband and I live in flipped one of the units, which increased the rent by $400/month and increased the value of the property by $25,000. We still have two units left to remodel. We will continue to keep rents in these units affordable until the tenants choose to move out. Having both worked in affordable housing, it's important to us that we're able to give back to the community by keeping unrenovated units affordable until the tenants choose to move.
What made you interested in investing in this type of deal?
My husband and I were looking for a 2-4 unit property to live in flip in order to maximize cash flow and equity.
How did you find this deal and how did you negotiate it?
We found it on the MLS and made a competitive offer that still allowed us to get the cash flow and equity that we wanted.
How did you finance this deal?
20% downpayment with conventional bank financing
How did you add value to the deal?
Renovated the apartment with new kitchen, bathroom, lighting and paint. Cleaned up common areas and replaced windows.
What was the outcome?
Excellent cash flow and equity with room to increase once we renovate the remaining two units
Lessons learned? Challenges?
We've gotten a better since of what repairs cost and have started to tackle more repairs ourselves. We've also learned how to streamline the leasing process.
