All Forum Posts by: Jake Didion

@Bud Gaffney Good idea on the 2021 goals thread! Add 30+ units to my Ohio portfolio in 2021. Need to refinance a cash deal first. Good luck, look forward to hearing you achieve your goals in the new year!

Investment Info:

Large multi-family (5+ units) buy & hold investment in Dayton.

Purchase price: $975,000
Cash invested: $975,000

28 Units. Rent from $550 - $650

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

Purchase price compares to NOI was very high. $34k/unit

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

I found this deal on loopnet. I hired a local broker in the Dayton market to help negotiate the deal. The sellers bought the property at the beginning of January 2020 and the company wanted to divest to get into mobile home park investing. We were able to negotiate $125K down or their break even.

How did you finance this deal?

Cash deal

How did you add value to the deal?

We just bought it. We plan to get rents stabilized and put a new roof on before we refinance in 6-12 months.

What was the outcome?

In progress

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Insurance - Drew Batt at QuickInsured 614.221.8199

@Jill F.

Great response to the issue I love this!

These 12 units are all next to one another. Everyone is currently paying $450-$475 per month and occupy has always been high. The average renter has been their for 3 years. The market indicates that I can get $550-$575 for each unit. How would you suggest I make this change? How do the tenants tell section 8 that their landlord is increasing rents? Does section 8 pay for the increase without questions? Looking to make this transition as easy as possible for the tenants. 

Thanks for your help,

Jake Didion

Didion & Lemke Enterprises LLC

I personally purchased a four-plex last week with FHA financing. I signed a property manager on at 6.5% or $40 a unit which ever is greater and $150 new lease commission (excludes any renewals).

Do you protect it personally until the required owner occupancy period is expired then transfer title into the business? Is the property management expenses reasonable? 

Investment Info:

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

Purchase price: $156,000
Cash invested: $11,000
Sale price: $156,000

4 plex

3 units renting for $450/month, renovating owner occupied (me) and still cash flowing $250 a month.

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

Section 8, and long term tenants in place

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

I found it through a realtor, under contract for $165k negotiated back down to $156k.

How did you finance this deal?

FHA

How did you add value to the deal?

Nothing yet