Awesome Wedge Deal in Clintonville

[George Iliev]

Investment Info:

Single-family residence buy & hold investment in Columbus.

Purchase price: $232,000
Cash invested: $10,000

Bought for $232,000 (Listed at $235,000)

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

Great Deal
Property Appraised "AS IS" at $270,000

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

Found on MLS
Negotiated a $5,000 Check at Closing for Repairs

How did you finance this deal?

5% Down on a Conventional Loan
Will only pay PMI for 9 months due to 20% loan to value ratio

How did you add value to the deal?

$12,000 worth of repairs (+2 months of after work sweat equity) and it is now valued at $310,000

What was the outcome?

After closing costs and my agent commission, I turned $12,000 of cash into $70,000 of real estate equity. I will rent this house in the summer for $2,500.

Lessons learned? Challenges?

Spend the money on a structural engineer; it's worth every penny. A $200 consultation turned into a $5,000 check at closing!

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

I have a license so I have the freedom to 100% directly negotiate my own deals from start to finish.

[Mat K.]

Thanks so much for your quick reply and suggestions. It’s reassuring knowing that. I’ve already started as you recommended and I’ve gotten a fourplex in Texas. Now I’m looking to go conventional and find deals here in Columbus Ohio since I moved back to Westerville. 

Why do you recommend getting a license instead in winter and not now ? 

Also are there any places you recommend getting the real estate license at ? Thanks again for your time. I’m looking to learn as much before I buy the next property. Possibly a flip or buy and hold single family to rent out in a good area.