Buy and Hold Single Family Investment in Cleveland-203K Loan

[Jacob Gable]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $219,000
Cash invested: $63,275

Buy and hold single family residence using a 203K loan

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

Great area with high appreciation and rental value

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

The home was listed on the mls. I actually was showing it to a client, he was not interested, but I was! It was sitting on the market for a few months so I offered well below listing price and the rest is history!

How did you finance this deal?

203K Loan

How did you add value to the deal?

Completely rehabbed the home from the bottom up!

What was the outcome?

It was a lot of work but we got the loan at a great interest rate and with the rental market in the area its been a great investment for me and my family. We are cash flowing over 2K a month and the house has appreciated to high 300s-low 400s if we were to sell today.

Lessons learned? Challenges?

I would say the biggest challenge was completing a whole house rehab and the paperwork for the 203K loan. You need to be extremely thorough with your scope of work, and unfortunately the sun porch was not salvageable, but fortunately the contractor helped knock it out of the park and the home looks amazing now!

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

I was the agent on the deal, but Bruce Pelz the lender was great throughout the loan process, along with the contractor used.