This was My First Deal, which lead to my next deal...

[Joe Forte]

Investment Info:

Single-family residence buy & hold investment.

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

Dutch Colonial on the East side of Barberton

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

My cousin is a Realtor, and she got me interested in Real Estate. She tried to get me to become a Realtor, but I was turned off after going to one of her company's open house events. It seemed like everyone was getting a cut of my commission - way to much work. Now Real Estate Investing - that was more my style. Little did I know how much work I would be doing. Eventually, I will remove myself from this rehab work eventually.

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

Realtor

How did you finance this deal?

Conventional Investment loan with 20% down

How did you add value to the deal?

Replaced the roof. Added 4th bedroom in basement. Added Central Air.

What was the outcome?

Rehab was $20k, all in for $36k. Rent is 900/month. Cash flow is 300/month. Cash-on-cash = 10%. Met the 1% rule.

Lessons learned? Challenges?

Made typical mistakes of most 1st time investors - Overlooked some big-dollar repairs that had to be done after moving in tenants, such as A/C did not work, the hot water lines (galvanized) were so packed/clogged, they had to be replaced, the windows are original - from 1921 - I will be replacing those next year, as they are painted shut...

Also - snake the main drain before the tenants move in.