Another Cleveland, OH Investment Property Success!

[Jared Smith]

Investment Info:

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

Purchase price: $224,400
Cash invested: $50,000

My 2nd multi-family home in the historic Tremont area in Cleveland, OH! A breathtaking one-of-a-kind brand new 50K renovation with an amazing location right by Lincoln Park! Great walking distance to all the restaurants and bars and only 1.8 miles walking distance across the bridge to catch a ball game at Progressive Field to see the Cleveland Indians!

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

I love the area of Tremont and this is right next to my very first home that I bought!

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

There was a for sale sign on the front of the house and my Dad told me about it. He sent me the number and I gave them a call! Since I was a local investor and originally from the area, the owner sold to me for the same price as an investor because I was going to renovate the entire house instead of knocking it down and building a new construction.

How did you finance this deal?

Traditional financing, cash and HELOC.

How did you add value to the deal?

50k Complete Renovation!

What was the outcome?

Another great deal - My long term strategy is buy, fix/repair/renovate, replace and buy new appliances and CAP EX and rent out!

Lessons learned? Challenges?

I was super aggressive with this one & not looking for another property because I bought 2 SFH's in Mesa Arizona the previous year. Having a HELOC allowed me to be flexible & self-finance when a fantastic opportunity comes my way for an off market deal. It took 6 months to complete the whole renovation, but well worth it. My conservative forecast was to carry the mortgage for 1 yr vacant. I have a great contractor who does quality work at a fair price, but just not the quickest. Patience is key!

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

Yes - ME! I am a licensed Realtor in Arizona & actively investing in real estate long distance successfully in both Ohio & Arizona!