All Forum Posts by: Samire Radman

That's awesome Mike! Thanks for sharing and I'm glad your first one went smoothly! I bought my first buy and hold in Garfield Heights last year and now I'm trying to BRRRR for the first time so this is very encouraging.

@Jimmy Lieu Finding a local bank that does portfolio Lending is a great option and the rates and terms will vary depending on the bank/credit union. If I’m not mistaken portfolio lending just means they are lending from their reserves and they’re not going to sell your loans to a bigger bank. Depending on the bank they will provide money for the rehab as well. You just need to call around and find out which banks offer portfolio lending and go over their terms. 

Yes, that’s exactly what I was thinking. Find another property like the one you’re currently in (needs fixed up, but livable), rehab at least one unit right away to get renters in and then rehab the other unit at the pace you want/need. Refinance when complete and pull capital out to repeat. 

A huge benefit of house hacking is you don’t have to stress about the timeline as much because you won’t have fees or increasing holding costs of hard money. I just think it’s a great way to get at least the first few properties under your belt.

Once you have some properties, cash flow and a cash reserve then it will be easier to borrow money to aid in more investments. 

Why not do both? If you could move into a small multi that is livable you can live in one unit while you fix the other units up first before moving to the other one. Once all units are fixed up you can then refinance getting that cash out (a live in BRRRR).

I would try that route before using hard money because the money you get has an owner/occupant is so much cheaper. Plus, if you live in any of these properties for 2 out of the past 5 years you don’t pay capital gains tax. 

Then when you have enough capital saved up starting using the BRRRR me god to invest in other properties as well while you continue to house hack. It may be annoying to move around but you can make a lot more money that way.

Investment Info:

Single-family residence buy & hold investment in Garfield Heights.

Purchase price: $76,000
Cash invested: $23,030

My first investment went better than I could have imagined! After analyzing between 50-75 deals, moving forward on 3, and then backing out when the numbers no longer worked and "losing" $1600 from inspection fees and loan application costs, I found this property that was listed as a short sale. Since it was owned by a smaller credit union it only to a week to get the sale approved! It appraised at $82k, so with my 20% down I have some good equity and still getting over a 15% COC Return.

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

My goal is to invest in buy and hold properties to build passive income and replace my W2 salary. The cash flow/COC return lined up well with this goal.

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

I found this deal on the MLS a couple days after it went live and since I knew it was a great deal I offer $1000 over asking price.

How did you finance this deal?

I used traditional financing and my own funds for the down payment.

How did you add value to the deal?

This house was in great shape and I got a good deal because it was a short sale. I did paint most of the house and added walls around an existing bathroom in the basement so it could actually be listed as a bathroom.

What was the outcome?

I'm making a great return on my investment and have outstanding tenants living there.

Lessons learned? Challenges?

The only issue that I have is that I left my money in the deal. I want to BRRRR for my next deal so that I can at least pull some of my cash out to be able to buy the next property sooner.

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

I have an amazing property manager that was also my agent. If you're investing in the Cleveland area please reach out to me so I can connect you with her.

@Andrew Syrios Thank You!! 

@Nick Ye thanks for the info and I look forward to meeting you there! 

@Evan J. thank you and I appreciate the offer! I will definitely take you up on that because hearing from someone local I feel would be very beneficial. 

@Dmitriy Fomichenko

Thank you for all the helpful information! I have already been utilizing the podcast and they have been extremely helpful. 

@Thos Crowley

Thank you for the info and I will definitely be there. Is the event listed on here? I looked the other day but only saw events in D.C.