All Forum Posts by: Al Perez

Excellent, well done. 

Hello Reginald, [email protected]

Cheers,

We have an eightplex under contract in Cleveland, OH. 44102 zip code. We offer 1st lien position and 10% interest per year. Plan is to refinance it or sell it once all units are rehabbed and occupied.

I'm looking to get $110,000 to purchase an eightplex in Cleveland, OH. First mortgage position and I'll pay 6% annually. Property needs approx $35K in rehab (furnacers, hot water tanks, electrical update, roof repair, painting, clean up) which will come from another investor and the rents we expect to obtain from first two units. We have a crew of contractors, electricians, etc and our business is well established in Cleveland. We estimate ARV to be at $280,000 once all units are occupied. Commercial area, close to I-90 highway, Ohio City, and downtown Cleveland. Huge demand for rentals in the area.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $25,000
Cash invested: $40,000

We bought this fourplex from a wholesaler. Owner had inherited and didn't want to keep it. Its value tripled since we bought it in Aug 2018

What made you interested in investing in this type of deal?

I was already investing in duplexes and triples. This seemed to be a good opportunity

How did you find this deal and how did you negotiate it?

Through a wholesaler

How did you finance this deal?

My two sons contributed to the investment.

How did you add value to the deal?

Via forced appreciation. We fixed two furnaces and rehabbed them one by one.

What was the outcome?

We still keep the fourplex

Lessons learned? Challenges?

Contractors turnover, overcharged by a dishonest plumber, first tenant was really bad, etc.