Looking for Feedback on My Next Move in Life

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Looking for Feedback on My Next Move in Life

Daniel Goldfinger
Investor · Salt Lake City, UT · Member since 2020 · 16 posts · 18 votes

My partners and I in Salt Lake City, UT are getting ready to head out to Cleveland to look at some properties to invest in, and at the same time, I am separately preparing to buy my own first property on my own. I've been looking at different options for FHA and FHA 203K to house hack my way into a duplex in Salt Lake City.

But lately, I've been thinking about the possibility of exploring options in Cleveland to house hack a 4-plex because property is much cheaper than in Salt Lake City with the opportunity for better cash flow. I have been thinking about trying to house hack the same way in Cleveland, using an FHA or FHA 203K loan and living in it for a year.

I work remotely, so I am not necessarily tied to Salt Lake City in the short term, although I do plan for it to be my home base in the long term. I am trying to figure out the optimal way of scaling my real estate business, and this seems like it could be a possible way to jump start my real estate portfolio.

I’d love to hear what others think about this idea, and if anyone else has uprooted their life temporarily to house hack in a different part of the country for their real estate career.

Thanks in advance!

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Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y

I would recommend looking down south as population and jobs move towards the warmer weather. Price isn't everything. There is a reason houses in Cleveland are cheaper. More supply than demand.

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y

    Not tethered to any job, can move anywhere, and you pick.... Cleveland.  Drops mic. 

    When I do the same (pick anywhere, with an investor focus) I select no snow and ice, no hurricanes/tornadoes/storms, no earthquakes or flooding , stable geology/less foundation issues, low humidity,  no state income tax, reasonable property tax and not nut-so pro-tenant   So OH doesn't fit for weather.  

    My first step would be to obtain an option c,d,e, etc.  Why Cleveland/Columbus or bust? Don't let "cash-flow' blind you. 

    1Reply
  • Kyle Parks
    Rental Property Investor · Lakewood, OH · Member since 2016 · 119 posts · 156 votes
    5y
    Originally posted by @Steve Vaughan:

    Not tethered to any job, can move anywhere, and you pick.... Cleveland.  Drops mic. 

    When I do the same (pick anywhere, with an investor focus) I select no snow and ice, no hurricanes/tornadoes/storms, no earthquakes or flooding , stable geology/less foundation issues, low humidity,  no state income tax, reasonable property tax and not nut-so pro-tenant   So OH doesn't fit for weather.  

    My first step would be to obtain an option c,d,e, etc.  Why Cleveland/Columbus or bust? Don't let "cash-flow' blind you. 

     Not everyone enjoys 1 season. Fall in cleveland is the BEST. 

    Cleveland is affordable. Its fun. It is locally owned and operated. 

    I love Cleveland because I HATE chains. Cleveland is lots of mom and pops joints all over the place. The barrier to entry for ANYTHING here is so much lower than other places I've lived.

    Florida, hawaii, California? You can have em

    1Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y
    Originally posted by @Kyle Parks:
    Originally posted by @Steve Vaughan:


    Florida, hawaii, California? You can have em

    These states wouldn't pass the no storms, earthquakes or humidity tests.  Not to mention tax and tenant-friendly (not FL).

    There are important reasons I don't want rentals in snow/ice climates. I have them now.  I would choose a place that doesn't have the frozen pipes/ice, snow damage and hassle risk, yet close to winter recreation. 

    Glad you like Cleveland so much. It's important to enjoy where you live. 

    1Reply
  • David Pearson
    Investor · New York, NY · Member since 2020 · 24 posts · 11 votes
    5y

    Hi Daniel,

    I am also new in the real estate investment world. I purchased my first out-of-state rental property (SFH) at the end of last year. I can easily relate to the situation you are currently in.

    Unfortunately, you have a lot of options on the table. Trying to make the perfect first decision in real estate is a mistake a lot of people are trying to make.

    The most difficult part is going to start. You are on the right track, but it’s important you keep that in mind.

    I don’t have a lot of experience in the markets you mentioned. I did purchased a rental property out of state and it went very smoothly. I used a marketplace called Roofstock.com instead of an agent. How they have helped me go through the entire process and how easy their platform has made myself feel good about my first purchase. I would highly recommend to start with finding a good realtor, or use a platform like roofstock.

    I hope this gives you a little bit of insights. Feel free to reach out in private if you have any questions about my first experience!

    Good luck!

    David

    0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Daniel Goldfinger

    You could house hack a multi unit in Cleveland but Airbnb the unit you’re supposed to occupy. I’m not sure the nuances of that but I know many people airbnb their personal residences when they travel so see it as a viable option. Overall I prefer Columbus to Cleveland. Lots more growth and stability in Columbus.

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  • Daniel Goldfinger
    OP
    Investor · Salt Lake City, UT · Member since 2020 · 16 posts · 18 votes
    5y

    @Marc Rice

    That’s a great point Marc, and something I’ve considered as well.

    I guess I should be more clear to people that Cleveland is not the end-all-be-all location for me. Because of my work flexibility, my living situation can also be quite flexible. The only reason I initially said Cleveland is because it’s where I’ve been looking in depth at opportunities, and the cash flow lines up with me to be able to live for next to nothing if I house hack it correctly while focusing my time and money on my investments.

    But I’m sure I could find similar opportunities elsewhere. I hear great things about Columbus, and the more I think about it the more I am open to other options in nearby areas, too, not necessarily even Ohio.

    However, with opportunities in the Midwest, I’m open to to exploring what other options there are through the neighboring cities as well.

    0Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Daniel Goldfinger Columbus (like most cities) offer OZ on the federal and the local level. The limitation is the renovation requirement related to purchase price...it's hard to meet unless you are doing full gut rehabs in the ghetto (which a lot of folks are). The long-term benefits are impossible to predict. There are a host of negative and positive OZ effects...just depends on who you talk to.

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    2Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    @Daniel Goldfinger I literally just did this, again. Yes, again!

    In a nutshell, my wife and I moved from one part of Maryland to the City when we bought our first Duplex. Best decision ever! 

    Last year, I told my pregnant wife to quit her job, we had a little baby in school at the time, and we all left Maryland and moved to Texas just before the lockdown. The main premise for the move was to scale our real estate business. Another superb decision!

    We moved to Houston, TX on and we love it here... The weather is fantastic for me and wife (both of us loves the hot climate). Houses are way cheaper in great school districts and the cost of living is way lower compared to the NE too!

    Look, I am under no illusion that not everybody has that opportunity to just up and leave a state or a city because of family ties and/or other strong ties. 

    My classic line is this: "In life, there is always a price to pay, and there are no discounts". 

    Basically, if you stay in Salt Lake City, there is a price and if you move to Cleveland there is a price to pay. The question is what sacrifice are you willing to make now for the future you are seeking. 

    Sometimes, it is ok to just move to where the current opportunities and if you don't like it you can always go back and try somewhere else. 

    Jim Rohn always says this: one thing human beings have as an added advantage is the ability to move around... he would say "you are not a tree"! 

    1Reply
  • Daniel Goldfinger
    OP
    Investor · Salt Lake City, UT · Member since 2020 · 16 posts · 18 votes
    5y

    @Ola Dantis

    Happy to hear that you took another plunge and it’s working out! I appreciate your insight. That is kind of where my head is at: I can always move back to Salt Lake City. It’s not going anywhere, nor are the things that I love about Salt Lake City.

    Part of it is also the excitement of moving to a new place since I’ve been here for over 10 years now. I tend to thrive outside my comfort zone, and I think this possible opportunity could open up not only several new doors, but also new perspectives that could further enhance myself and my skill set.

    Thanks again for the encouraging words!

    1Reply
  • Brian Tome
    Attorney · Worton, MD · Member since 2014 · 274 posts · 195 votes
    5y

    @Daniel Goldfinger - You are getting lots of great advice here!  Thanks for asking the question.  I am benefiting from the insight others are providing you.

    I tend to agree with @Steve Vaughan.  If you can move anywhere you want to, pick someplace you love.  You can find a way to live free or cheap through a house-hack or AirBnB arrangement in most markets.  Then you can build from there.  If you like Cleveland, awesome!  But ... 

    Just thinking "why put boundaries on your goals?"

    1Reply
  • Rob Gillespie
    Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
    5y

    Hey Daniel, 

    That is a great place to be in your life when you can pack up and move wherever ya want, whenever ya want to do it!

    Cleveland (North East Ohio) is a GREAT place to House Hack. In fact, I cant think of a better place to do it. If You were to choose to live in "Cleveland" I would pick a redevelopment area like Ohio City, Tremont or Detroit Shoreway. 

    My son is in college and doing exactly that. He purchased a home for 65k. will put about 50 into it and it will sell for 300k+ if he chooses to sell after he graduates. This is of course a process of a massive renovation and lots of creativity in the design. Regardless, this should give him a strong start in life!

    Cleveland may be cold, but the real estate deals are HOT!

    Good luck to ya Daniel! Let me know if you plan a visit to C-Town. Would be happy to show ya a few areas. 

    2Reply
  • Jordan Atkin
    Developer · SLC, UT · Member since 2013 · 50 posts · 35 votes
    5y

    @Daniel Goldfinger

    My two cents. If you think you can be happy in SLC, then stay. Utilize your local market insight to help guide your decision about where you want to invest your dollars. I’m bullish on SLC and think we will continue to see job and population growth.

    In my portfolio I’ve seen the majority of the gains come from appreciation not cash flow. We have been able to roll those gains from SF and small Multi’s into larger multi and commercial. Being in a strong market is similar to be strapped to a rocket!

    Best of luck

    0Reply
  • Scott Campbell
    Member since 2020 · 1 post · 1 vote
    5y

    Hi @Daniel Goldfinger!  Thanks a lot for creating this thread.  I'm thankful to have learned so much from this awesome community.

    Our situations seem fairly similar.  I've been living in Denver for the past 5 years and I'm currently considering a move to NE Ohio.  I grew up in a west-side suburb of Cleveland (Berea) and I have some family there that I would love to live closer to for a few years.  Similar to you, my job allows me to work remotely from anywhere and (before COVID) I traveled a ton for work.

    I'm new to real estate, but the market in Ohio is attractive to me because it seems that finding a deal that cash flows is possible.  Denver prices are sky high.

    I'm thinking a house-hack on a multi-unit/four-plex would be great for my first deal.  I have been fortunate to be able to save quite a bit (high-paying W2 job, high savings rate, no wife/kids yet).  My aim is to generate consistent cash flow that covers my mortgage.  I'm struggling a bit to find deals though.  I'm also super interested in partnering with other folks who are interested in learning and creating a portfolio.

    Have you connected with any agents or investors in NE Ohio who you would recommend?  If you're in town or still interested in buying in the area, I'd love to connect!

    I'm going to continue to follow this thread!

    1Reply
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