First Buy and Hold

[Vadim F.]

Investment Info:

Single-family residence buy & hold investment in Cleveland.

Purchase price: $63,500
Cash invested: $63,500

SFH in Cleveland OH (44128)

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

It was tenant occupied with a Section 8 tenant in place and I knew that the current rent was way under market.

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

MLS

How did you finance this deal?

Cash

How did you add value to the deal?

When purchased it was rented under market to a Section 8 tenant. Knowing the market rents, I submitted a rent increase to Section 8 and was granted a $300mo increase.

What was the outcome?

Since purchasing the property in May of 2023 it has increased in value by 25% and I was also able to increase to market rents.

Lessons learned? Challenges?

Working with Section 8 comes with its challenges. My tenant is also not the most tidy person there is but that is the risk vs reward you take for getting stable rent payments in a market like Cleveland.

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

My agent who is also my PM.