Producing income property, Cleveland Ohio

[Bob Galivan]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $60,000
Cash invested: $60,000

3/1.5 single family home in the Cleveland area. Newly rehabbed, purchased turnkey

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

We seek out invesments that show they will generate at least 10% ROI annually with a 5-year hold time. The ROI is not expected to be consistent, but average out over the hold period

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

Purchased though a private investor who buys tax certs on distressed properties, then rehabs

How did you finance this deal?

Cash!

What was the outcome?

Current tenant is producing the expected revenue

Lessons learned? Challenges?

More detailed inspections to determine extent of hidden issues

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

I am a Realtor

[Bob Galivan]

This is not too far from Shaker Square/Shaker Heights. Cuyahoga County is almost 100% incorporated into municipalities, like Shaker Heights, Cleveland Heights, etc. "Cleveland" is an incorporated city. The taxes and purchase requirements are lower in Cleveland city as opposed to the other munis. Overall, the ROI for Cleveland rental properties, especially in the low- to moderate-income space, are 8%-12% or higher. Very profitable.