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Updated 9 months ago,
My First Rental Property
Investment Info:
Single-family residence buy & hold investment in Cleveland Heights.
Purchase price: $36,000
Cash invested: $5,600
Contributors:
Jake Burkons
Happy to obtain my first rental asset!! Cash Flowing, learning the process on closing a deal was great and the upkeep/PMing part of the job is something I also find important to learn before thinking of scaling!
What made you interested in investing in this type of deal?
Needed to get my skin in the game and found a great opportunity with a wholesale deal and had a good visible gap between our buying price and the value of the home so I interested me to this deal because of the way that me and the team would be able to learn and handle these opportunities in the deal to maximize ROI and asset lifespan of performance.
How did you find this deal and how did you negotiate it?
We received this deal via a connection through a realtor that linked us with the wholesaler where then we where able to negotiate from 42,00 too 35,000 plus the 1,000 for escrow and CC's all in at 36,000
How did you finance this deal?
All Cash-100% Equity is ours.
How did you add value to the deal?
Proper timing was key for this deal understanding the Market and the sellers position in the market and in the deal, it played out great and we where able to make some profits on the investments before even receiving the first rent check.
What was the outcome?
Still preforming, we have learned that our rent can be raised by another couple hundred via switching to Sect. 8. (If anyone has a level of expertise in this are please reach out I have a few questions!), our next move in renovations on kitchen and raise rents and onto the next property.
Lessons learned? Challenges?
Lessons learned is to ALWAYS have capital liquid for fixes and damages in the property and to always background check your tenant as a bank looks through your payment histories to give your the loan same with the tenants our current tenant has not missed a payment in 2.5 years, w/ a stable job and kids.