Euclid SFR Rental #1

[Robert Matelski]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35,000
Cash invested: $40,000

SFR purchased as short sale (in 2016), required minor repairs (mainly City of Euclid POS requirements) before renting.

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

Properties available for well under their previous peak values, in an area with strong rental demand.

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

MLS listing

How did you finance this deal?

Cash (no financing)

How did you add value to the deal?

Minor repairs to meet point of sale requirements, and bringing suitable property management to the table

What was the outcome?

Ongoing monthly cash flow while property appreciates (values heading back toward previous, pre-crash levels)

Lessons learned? Challenges?

City of Euclid building department is a pain in the neck. They made things difficult, despite the fact that the house was overall in good condition, and the scope of the POS repairs was minimal.

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

Mike Balamenti is my go-to broker. He knows the Cleveland market very well.

[Michael Swan]

I prefer NE Euclid - NE of the new Amazon Fulfillment Center and Lake County.  Demographics, economically, socially, etc... are ideal.  Presently negotiating at about $37,000 a unit  for a 57 unit in Mentor.  Presently I have 7 apartment complexes in Euclid and Painesville and one apartment complex in Akron (total all apartment complexes 120 units). 

I recently sold all my 1/2 Duplexes and single family in Euclid for about $45,000 for each  1/2 Duplex and first purchased them for an average of $25,000 a 1/2 duplex, plus about $5,000 a door fixup each.  Bought those in 2014-2015 and sold for 50-60% appreciation in 2018.

Feel free to reach out to me and I am ONLY an investor and I give advise often to BP members and open my phone lines too!!

I love this stuff!!

Swanny