Maple Heights, OH - My first BRRRR project.

[Greg Haygood]

Investment Info:

Single-family residence buy & hold investment in Cleveland.

Purchase price: $19,000
Cash invested: $45,000

Contributors:
Neal Mahoney

This was my first project. I bought it at auction, renovated, and rented, althought the latter two steps took awhile. l will refinance in 2020 and will reinvest the proceeds into another SFH in the same market.

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

I grew up in this house, and I noticed it went to auction, so I took advantage of the opportunity. The purchase price was low enough that I felt comfortable selecting this house as my first attempt. If everything went wrong, I could afford the loss.

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

A family member alerted me that the house was being auctioned.

How did you finance this deal?

I purchased the house in cash at auction.

How did you add value to the deal?

The home was pretty delapitated, so I was able to force equity by renovating and capturing the current market value.

What was the outcome?

After completing renovations, I found a tenant, and I will refinance the house, so I may use the proceeds to buy another investment.

Lessons learned? Challenges?

I initially chose the cheapest contractor, which didn't work out well. Shortly thereafter, I found my next contractor on Bigger Pockets, and I continue to work with him to this day.

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

Not on this project.