This story starts back this summer, but it is something I believe is worth sharing. I own a 5 unit building on the east side of Cincinnati. I purchased this first investment property when I was 24, back in 2015. House hacking has been great so far and I highly recommend it for anyone looking to get started in real estate. It is pretty awesome making money while you live in your own house.
Right next to my building there is a vacant four unit apartment building. It has been vacant for four years (per my neighbors). The Auditor's site had a Chase bank office located in Jacksonville as the owner. I went to Jacksonville, for my full-time job, for a week to work this summer. One day after work I decided to stop by this office to see if I could purchase the building. I figured, what the heck, might as well visit them and see what happens. I walk into the bank and end up talking with a mortgage officer. That was the only person there the day. Long story short, he said there was nothing he could personally do, but he'd look into it. I explained that it was vacant for four years and I'd love to buy it and renovate it. Wouldn't you know it... the building was up for sale that next week through HUD... Coincidence? Did the bank forget they owned it? I don't know for sure, but I'm leaning towards they forgot they owned the building.
I submitted my bid for the property, after having subs come in, and look at the project. It was pretty much going to be a full gut. Numerous hours spent going through the property and getting all the numbers together. I thought this property was meant to be. Found out a lost the initial bid for the property by $150. I was crushed. Would have loved to own that building and renovate it, like I did to my current property.
The night I found out I lost the bid, there was a gentleman walking around the vacant building. He said hi to me and I said hi back. He asked me if I knew anything about the building and I responded yes, and that I just found out I did not win the bid for it. We started talking real estate and he mentioned that he had a building he would sell. I went to go see the property that night and ended up closing on the building this past Friday. This building didn't need near the amount of work that the vacant building did and I bought it at a great price for the condition it is in.
My point in writing this is to encourage investors just starting out to not get discouraged. You never know who you are going to meet and when your breakthrough is going to happen. I though that vacant building was meant to be after the chain of events that occurred, turned out it wasn't. I just so happened to pull into my driveway at the same time this stranger was walking around the vacant building, say hello, and it turned into buying his four unit building. Keep pushing forward, there is always another opportunity out there for you to get started!
Thanks,
Craig
