First Investment Property - Many More to Come!

[Rik Patel]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Cleveland Heights.

Purchase price: $166,500
Cash invested: $38,000

Simple up/down duplex right across the main action in Cleveland Heights.

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

I've read for 3 months about investing out of state (mainly Cleveland area) as nothing made sense in my area for cashflow. The rents are strong and the market prices are low so it only made sense for me to start this way on my REI journey.

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

I worked with a agent and we dictated the number that worked best in terms of my cash flow goals.

How did you finance this deal?

I financed the deal through a standard 30-year fixed, low interest mortgage.

How did you add value to the deal?

The deal wasn't value add, more of a buy/hold as the area is coming up.

Lessons learned? Challenges?

Lessons learned is definitely know the area you're buying in, especially when out of state. I flew 3-4 times to Cleveland to see properties to be sure I'm buying in the correct area. Find out what type people are going in and out of the house, stay on the street and see if you see anything suspicious, drive a few blocks around the house you're interested in so you get a feel for the area. Also, talk to neighbors! They'll give you the key info on your property.

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

Yes, feel free to message me for contact information for a lender, agent and inspector.