All Forum Posts by: Bob Galivan

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $40,000
Cash invested: $40,000

Single family invesment property, Cleveland, Ohio. Turnkey property, 3/1.5 with an unfinished basement. Purchased for cash with tenant in place. Gross rent is $843 mo, expense load is about 43.5%, so return is around 11% annual.

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

Good return on investment. Initial analysis pegged it at around 12.5%, reality is close to 11% which is find and dandy.

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

relationship with investor

How did you finance this deal?

cash

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

I am a realtor

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.

In most cases we purchase for cash. At this price, the cost of the mortgage at 70% financing doesn't make much sense. If the property needs complete rehab, then the mortgage would be either too hard to get, or would require hard money. I'm in a position (fingers crossed) where I don't need to borrow for these. Having said that, I have a couple large projects (around $1,000,000 where we are doing full rehabs. In those cases, we raise cash to complete the project, get it fully rented, and the refinance to extract all or most of the investment cash. 

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