17 Homes in Cleveland with over 20% cap ratios!

[Larry White Jr]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $621,000
Cash invested: $100,000

We have acquired 17 homes over the past year paying for them in cash. We recently completed a cash out refinanced and will be buying another round of 15-20 properties!

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

Targeting markets that have not been exposed to the rapid appreciation and Ibuyer craze while still having employment opportunities for the work force!

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

Sourced through a number of wholesalers and real estate agents.

How did you finance this deal?

Paid Cash and performed a cash out refi. Moving to a higher price point and using private money.

How did you add value to the deal?

Rehabbed, added tenants, and stabilized the investment.

What was the outcome?

Most of the homes have appreciated close to 30% and we are moving many into section 8 or lease options.

Lessons learned? Challenges?

Higher turn over ratio than expected with class D level properties.

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

I run a branch of hard money with the most competitive terms in the business! 2% origination fee on the purchase and a 5% interest rate on a 30 year buy and hold investor product!