First Investment Property
Investment Info:
Single-family residence buy & hold investment in Garfield Heights.
Purchase price: $76,000
Cash invested: $23,030
My first investment went better than I could have imagined! After analyzing between 50-75 deals, moving forward on 3, and then backing out when the numbers no longer worked and "losing" $1600 from inspection fees and loan application costs, I found this property that was listed as a short sale. Since it was owned by a smaller credit union it only to a week to get the sale approved! It appraised at $82k, so with my 20% down I have some good equity and still getting over a 15% COC Return.
What made you interested in investing in this type of deal?
My goal is to invest in buy and hold properties to build passive income and replace my W2 salary. The cash flow/COC return lined up well with this goal.
How did you find this deal and how did you negotiate it?
I found this deal on the MLS a couple days after it went live and since I knew it was a great deal I offer $1000 over asking price.
How did you finance this deal?
I used traditional financing and my own funds for the down payment.
How did you add value to the deal?
This house was in great shape and I got a good deal because it was a short sale. I did paint most of the house and added walls around an existing bathroom in the basement so it could actually be listed as a bathroom.
What was the outcome?
I'm making a great return on my investment and have outstanding tenants living there.
Lessons learned? Challenges?
The only issue that I have is that I left my money in the deal. I want to BRRRR for my next deal so that I can at least pull some of my cash out to be able to buy the next property sooner.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I have an amazing property manager that was also my agent. If you're investing in the Cleveland area please reach out to me so I can connect you with her.
