BRRR Strategy - rental property #1

[Brittany Woosley]

Investment Info:

Single-family residence buy & hold investment in Garfield Heights.

Purchase price: $64,500
Cash invested: $12,500

I go into detail of the BRRR strategy we used on this purchase in a blog post here: https://mortgagefreeincle.com/2020/10/29/rental-property-1/

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

We moved to Cleveland specifically because of the investment opportunities it presented. With such a strong rental market and a low cost of entry, we knew this would be a great place for us to get started investing in real estate.

How did you finance this deal?

We didn't have the funds to purchase this property outright with cash, so we financed it with a 30-year fixed mortgage.

How did you add value to the deal?

We renovated the entire house, completing most of the labor ourselves.

What was the outcome?

We refinanced after the renovations were complete and the property appraised at $85,000. We then rented it out for $955/month.

Lessons learned? Challenges?

The major lesson we learned on this purchase was to not go overboard on the renovations. We chose material and finishes that we would enjoy, but ended up spending more money than probably necessary on the rehab. In the end though, it turned out to be a great rental with minimal problems and a solid return.

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

We switched agents after I met my amazing mentor, Kathleen Bassett, and now I am an agent myself at her brokerage, Shoreway Realty Group!

[Greg Johns]

Nice work!  I lived in Sonoma (town of) for several years and live in Berkeley now.  The high cost of property means we are renters.  Because of this insanely expensive market, we are looking to invest in rental properties OOS and Cleveland is one of three market "finalists" that we are doing more research on.  Right now, my biggest concern is whether the properties will hold their value over time.  When I look at the history of what a property sold for in the past, it's not very encouraging.  Anyway, I'll be sure to check out your blog!