Accidental Value-Add Deal in Cleveland.

[Caleb Heimsoth]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35,000
Cash invested: $11,500
Sale price: $46,000

2 bedroom, 1 bath half-duplex on west side of cleveland. Updated interior, when inherited tenants moved out. Sold after 15 months of ownership, for ROI in excess of 20 percent.

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

cash flow real estate.

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

off-market pocket listing through a local realtor

How did you finance this deal?

20 percent down conventional financing. I got "lucky" to find a lender who would do this 28k loan at 5 percent for 30 years.

How did you add value to the deal?

Updated the interior and upped rent significantly. Rent went from 750 to 850.

What was the outcome?

Bought at 35k sold at 46k and made in excess of 20 percent ROI

Lessons learned? Challenges?

C class tenants, long distance is not the best way to go. The inherited tenants were problematic at times.

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

If you're looking for an agent in cleveland, I recommend Jad Boudiab