Single-family residence buy & hold investment in Akron.
Purchase price: $55,000
Cash invested: $420
Akron SFR - purchased with a discount after discovering roof issues via home inspection. Lender (Owner Carry) rolled entire amount (including down) into loan once the roof was discovered to have potential problems. We agreed to an addendum to replace the roof within 120 days post close, I am prepared to replace it within the next 30 days. I used the roof problem to leverage paying only my closing costs, which were approx $420.00.
I plan on adding value to the home over the next 6 months, staring with the roof (rent ready, though marginal) to give it more value (appraised at 58 2 years ago, 50 last year, area comps have homes ranging from 60 to 90 range)
What made you interested in investing in this type of deal?
The region - NE Ohio has very easy entry points in B/C areas.
How did you find this deal and how did you negotiate it?
Zillow. I contacted the agent and we negotiated over a 4-5 day period, I used area comps, previous appraisals of the home.
How did you finance this deal?
Owner Finance. Was going to put down 15%, then we got down to 10%, and after the inspection we agreed to roll the entire purchase into the loan and allow me to use capital to replace the roof on my own instead of allowing lender to do the job.
How did you add value to the deal?
I will be replacing the roof (has life, but shingle cuppage and moss have worn parts of it thin, into some layers of wood) new gutters needed as well. I will be painting the home within a year (if not before winter, then next spring), have scheduled mild rehab to have the home rent ready in the meantime.
What was the outcome?
We came to an amicable decision for both parties, he agreed to my final proposal, with a 120 day contingency (post close) to replace the roof as I mentioned.
Lessons learned? Challenges?
Yes. I know I am perceived to drive a hard bargain. RE was apparently prepared to let me out when I continued to counter what I was not willing to accept.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No. I did utilize the services of Home Inspector was Joe Sanzone, who I found here on BP and provided a GREAT inspection. Very thorough.
Hi @Andre' Arceneaux ... I'm in Orange County too. Let's connect sometimes!
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