First Deal is under way, and it's a long distance one.

[Michael D. Shrout]

Hello BP Family,

This is my first post.

I just made my first deal and it's a long distance one that came to me through a relationship I built using the tips and techniques I learned here at Bigger Pockets.

I paid $1000. under asking which to me didn't feel like a good deal at the time, but I ran my numbers in multiple different scenarios and I just knew I had to pull the trigger. It is a cash deal and I am presently waiting on my inspection report to confirm my situation.

I am a new investor living in Long Beach, CA. I have been searching the MLS for months in the Cleveland area and have actually had one offer accepted but it fell out of contract after I discovered the property needed a complete rewire and a new roof. Thank you Mr Inspector. The sellers were not willing to negotiate any further so I backed out of the deal and moved on.

I've been extremely cautious due to the fact I'm new at this, but this deal's numbers work for me any which way you slice it up so I jumped in with both feet. I expect to close the deal in mid November and look forward to pulling off a killer BRRRR. This place is a four unit building with three tenants who want to stay. Even if I don't rent out the fourth unit AND I don't change the current rents, I am still looking at an ROI of more than 15%. My plan is to make some upgrades to the interior (outside seems solid) and bump the rents up to market level. I'm setting aside about $20,000 for improvements if needed so if the current tenants don't want to stay and enjoy the improvements but pay a little more rent, they don't have to, but I still have the option of just keeping it "Status Quo".

Any advice you can offer will be welcomed.  But if any of you do business in Lorain, OH, or the surrounding areas, I am looking to put together a team so I can repeat my efforts over and over.  I'm looking for contractors and tradesmen of all sorts, property managers and as much local knowledge as I can get.  

I'm planning on coming to town for a visit Nov 12-14 so perhaps a meet up will be going on that I can attend.

Thanks to all.

Mike