All Forum Posts by: Jacob Gable

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Bedford.

Purchase price: $65,335
Cash invested: $32,301
Sale price: $197,500

Was my second BRRR investment but ended up selling the property to move into a larger one.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $197,500
Cash invested: $32,758

Buy and Hold Short Term Rental In Cleveland

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

I was always interested in dipping my toes in the short term rental game. Most of my investments were stable and long term so I felt confident taking the risk.

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

I found the deal sitting on the market for 21 days which believe or not is a long time for the area. I was able to negotiate it 21K under asking.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

We completed renovated the small house and furnished it.

What was the outcome?

So far a little over a year later we are a super host and premier host on Airbnb and VRBO respectively.

Lessons learned? Challenges?

One challenge about short term rentals is that they are not always booked and initially getting those bookings to a minute, people were more hesitant since we didn't have the super host and premier rating. Once we were able to obtain those statuses it has been booked pretty solid.

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

I was the agent on the deal!

 Hahaha right you should've see the pink and yellow tile!

Thank you @Ryan Arth!

@Robert Zajac like everyone else has said 15% markup is extremely high. I would suggest that you have them provide a few different quotes to price out the project. Then you can at least see if there is any major variance in pricing. Also just know the cheapest quote is not always the best. You want to use a contractor or repair man with a proven track record. 

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $535,000
Cash invested: $133,750

Long term commercial investment in Rocky River, Ohio

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

We were interested in rolling money from a sale of a triplex into a larger property.

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

We found this deal reviewing Loopnet and saw it had been sitting on the market. We offered 30K under asking and got it under contract, after the inspection we were able to renegotiate another 10K off of the property due to repairs needed.

How did you finance this deal?

We used commercial financing of a 10 year not with a 20 year amortization schedule.

How did you add value to the deal?

We added value by decreasing the offer after the inspection and then after closing we were slowly able to get rents to market rent. To increase cash flow. We also were able to get the property taxes reduced by filing a complaint with the county.

What was the outcome?

It took about a year and a half to stabilize the property but the property is stabilized and cash flowing.

Lessons learned? Challenges?

One major lesson learned is that commercial financing is no where close to residential financing and that you need to give yourself a decent amount of time to line things up.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $195,000
Cash invested: $54,156

Buy and hold single family home with a 4 Car Garage.

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

I found the home as a for sale by owner by owner and it had a four car garage in a great location with a large lot.

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

I negotiated the FSBO and was able to even secure a commission.

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

I rented out 3 of the four garages and the first year was able to rent it without doing any work.

What was the outcome?

I ended up renovating the home completely and was able to increase rent and secure another 2 year tenant with three garages rented.

Lessons learned? Challenges?

I learned that not all for sale by owners are hard to work with. The one challange is maintaining the exterior, of the home being so close to a school it gets beat up.

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

I was the agent for the deal.

Investment Info:

Single-family residence buy & hold investment in Rocky River.

Purchase price: $219,000
Cash invested: $63,275

Buy and hold single family residence using a 203K loan

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

I was going to use this home as my primary residence and do the 203K loan to build a ton of equity

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

I found this deal actually showing a client he was not interested in it and decided it needed to much work. So a few weeks went by and I asked him if he didnt mind if I bought it. At that point it had been sitting for awhile so we ended up getting it way under asking!

How did you finance this deal?

We financed doing a 203 K loan

How did you add value to the deal?

We added value by getting this home way under asking with seller concessions. Then ended up completely renovating the home.

What was the outcome?

It worked out perfectly. We lived there for a couple of years and were able to build over 150K in equity with the renovations we made.

Lessons learned? Challenges?

I would say a complete home remodel definitely has challenges. Ones of the biggest was that we had to completely replace all the old electric, luckily we were able to save in other areas of our budget to offset most of the costs but not all of them.

Hi Pooja, I am newer to bigger pockets myself, but am an experienced agent and property manager in the Cleveland area. I personally own and hold mainly in Rocky River.  Rocky River, Hudson, Kent, Cuyahoga Falls, and Lakewood are great areas to invest and premium rental markets. Are you trying to be mainly on the eastside? 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $219,000
Cash invested: $63,275

Buy and hold single family residence using a 203K loan

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

Great area with high appreciation and rental value

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

The home was listed on the mls. I actually was showing it to a client, he was not interested, but I was! It was sitting on the market for a few months so I offered well below listing price and the rest is history!

How did you finance this deal?

203K Loan

How did you add value to the deal?

Completely rehabbed the home from the bottom up!

What was the outcome?

It was a lot of work but we got the loan at a great interest rate and with the rental market in the area its been a great investment for me and my family. We are cash flowing over 2K a month and the house has appreciated to high 300s-low 400s if we were to sell today.

Lessons learned? Challenges?

I would say the biggest challenge was completing a whole house rehab and the paperwork for the 203K loan. You need to be extremely thorough with your scope of work, and unfortunately the sun porch was not salvageable, but fortunately the contractor helped knock it out of the park and the home looks amazing now!

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

I was the agent on the deal, but Bruce Pelz the lender was great throughout the loan process, along with the contractor used.