Buy and Hold Single Family Investment in Cleveland-203K Loan

[Jacob Gable]

Investment Info:

Single-family residence buy & hold investment in Rocky River.

Purchase price: $219,000
Cash invested: $63,275

Buy and hold single family residence using a 203K loan

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

I was going to use this home as my primary residence and do the 203K loan to build a ton of equity

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

I found this deal actually showing a client he was not interested in it and decided it needed to much work. So a few weeks went by and I asked him if he didnt mind if I bought it. At that point it had been sitting for awhile so we ended up getting it way under asking!

How did you finance this deal?

We financed doing a 203 K loan

How did you add value to the deal?

We added value by getting this home way under asking with seller concessions. Then ended up completely renovating the home.

What was the outcome?

It worked out perfectly. We lived there for a couple of years and were able to build over 150K in equity with the renovations we made.

Lessons learned? Challenges?

I would say a complete home remodel definitely has challenges. Ones of the biggest was that we had to completely replace all the old electric, luckily we were able to save in other areas of our budget to offset most of the costs but not all of them.