This was My First Deal.

[Joe Forte]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $82,500
Cash invested: $10,000

3/2 Dutch Colonial on the East side of Barberton. Added 4th bedroom in basement.

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

Typical Newbie mistake. Fell in love with the house. Completely overlooked age of a/c and old water lines.

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

Realtor.

How did you finance this deal?

Conventional loan - with 20% down.

How did you add value to the deal?

Added 4th bedroom, new roof, new a/c, new furnace.

What was the outcome?

All in for $36,000 ($16k down, $20k rehab). Rents for $900. Cash flow $300. Cash on cash return 10%.

Lessons learned? Challenges?

Always snake the main drain before renters move in.