Condo Lease Option Deal Cincinnati, Ohio!

[Joseph Cornwell]

Investment Info:

Condo buy & hold investment.

Purchase price: $31,000
Cash invested: $75,000

This is a single family condo, full gut renovation. It was a hoarder house that was vacant for many years. It will be renovated and leased to an employee of mine on a lease option to purchase. I will REFI my cash out in 6 months plus 20k, and then cash flow about $300/mo after that.

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

Lease options with trusted tenants are great, triple net, they take care of the property, no cash left in the deal after refinancing.

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

This was listed with a wholesaler for a contract assignment.

How did you finance this deal?

I am using my cash on the purchase and renovations.

How did you add value to the deal?

Full gut renovation, it was a hoarder house, we had over 150 cu yards of trash and debris in the demo.

What was the outcome?

It should appraise at 150K+ in 6 months, I will refi my renovation costs plus 20k profit out of the deal, then continue with a lease option with my tenant for $300/mo in cash flow. Lease options are a great investment type!

Lessons learned? Challenges?

So far the biggest issue was getting the electric meter reinstalled after it was vacant for so many years.

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

I am an agent and own my own construction company that will be doing the renovations.