First Investment Property!

[Lauren Koon]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $94,000
Cash invested: $27,000

Finally purchased my first single family home in Garfield Heights Ohio after almost two years of reading lots of books and listening to every single podcast! I worked with an awesome realtor that I met here on bigger pockets and am still in the process of updating a few things to get ready to rent and hopefully place some awesome tenants in the property.

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

I know that I wanted to do buy and hold investing to build wealth and eventually become financially independent.

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

I found the deal through my realtor, who I met through BiggerPockets. It was listed on the MLS and I made an offer but they did not accept it initially and went with another buyer, which they backed out after the inspection. The listing agent reached back out to my realtor and asked if we were still interested and that the seller was now offering a credit to buyer to pay for a new roof to be placed on the house and garage so we made another offer and got under contract.

How did you finance this deal?

I am financing this deal with a 30 year mortgage, 20% down payment.
The seller left a credit of $8985 in an escrow account to pay for the roof from a quote they had gotten through a roofing compnay. My realtor worked with the title company and got the verbage to allow me to use the funds for the roof AND other POS (Point of sale) repairs I needed. I got a new quote for the roof $6300 and can use what is left of the $8985 on other repairs.

How did you add value to the deal?

The couple that lived in the home smoked so my realtor let me borrow his Ozone generator to help get the smoke smell out (works amazingly) I am adding a new kitchen countertop, faucet, backsplash and repainting the kitchen cabinets. I also painted all the interior doors and put on new door handles and am changing out the light fixtures.

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

My realtor James Maradits was extremely helpful and knowledgeable and really great to work with.