Our first RE Investment

[Tess Vang]

Investment Info:

Single-family residence buy & hold investment in Cleveland.

Purchase price: $20,000
Cash invested: $3,000

This one was our first RE investment. It was a total gut rehab we found through fb marketplace. We have renter renting it now.

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

We were trying to wholesale it, but didn't have the right marketing strategy. It was too good of a deal to pass and that's why we decided to take on this project.

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

2 - 3 months I think.

How did you finance this deal?

We found a local bank that loan to RE investment property. He ran the numbers and knew it was a good deal before loaning us the money.

How did you add value to the deal?

We had contractor ripped out panel wall and added dry wall. Electricals were all new and and update, new kitchen, added laundry hookup, new doors, floors, and light fixtures.

What was the outcome?

It looked beautiful when finished. Like something I wouldn't mind moving in myself. Our tenant fell in love with it when they first came for a walk through.

Lessons learned? Challenges?

We learned a lot about working with contractors. It doesn't get done when they say it will get done. Some days there's no one there at the job site and we have to call them to see why.

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

Other than our loan officer, no we didn't.