Updated about 2 years ago on . Most recent reply
My first REI, 4-doors!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Columbus.
Purchase price: $300,000
4-units. 1 bed/1 bath, each
Experimenting with STR for one unit.
What made you interested in investing in this type of deal?
Converting from long term rental to short term rental.
Market rents for long term at time of purchase was $650-$700 per unit.
Market forecasts for short term rental was $900-$1,100 per unit.
How did you find this deal and how did you negotiate it?
This deal fell out of contract, due to the inspection, with one of my realtor’s other clients. He brought me the pre-negotiated price and existing escrow terms I was able to meet.
How did you finance this deal?
Conventional mortgage utilizing a 401k loan for down payment.
How did you add value to the deal?
Painted a unit for long time renter.
Cosmetic updates to convert one unit to short term rental.
What was the outcome?
TBD
Lessons learned? Challenges?
Read the fine print in the leases! I assumed they all go month to month after the terms, that’s not always the case. For the leases I inherited, they default to an additional year if 30 days notice is not given by either party.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes! Remington Lyman - Realtor
Chris Wharton at First Ohio Bank for financing
Most Popular Reply
@Jackson Hartman
Check out renting to travel nurses. I’ve had really good luck renting to them and I use furnishedfinder.com. Doing that with 1 of the units would help diversify your asset.