First rental in contract!

19 Replies

I'm excited to share that finally I am in contract for my first rental property! Duplex in Cleveland OH! Having the inspection tomorrow and probably won't see the place in person until after closing... eek! I am OOS investor in San Diego. Any tips for this newbie?!

Originally posted by @Leah Gonzalez :

I'm excited to share that finally I am in contract for my first rental property! Duplex in Cleveland OH! Having the inspection tomorrow and probably won't see the place in person until after closing... eek! I am OOS investor in San Diego. Any tips for this newbie?!

>probably won't see the place in person until after closing

I hope you have a very trusted team.  Maybe a family member or friend checking on things.  This sounds like this could easily turn into a horror story for a couple hundred dollars of cash flow per unit that historically has not kept up with inflation and property values that historically have not kept up with inflation.

>Any tips for this newbie?

I am a strong advocate of newby RE investors starting local.  So Tip #1 is start local.  Have you read David Green's book on long distance investing?  I hope you are as educated as you can be because even if you are well educated the process can have challenges.  If you are trusting a new/unknown team with minimal knowledge it could be a disaster.  Tip #2 is to be as educated as you can be.  Related to Tip #2, Tip #3 is make sure you build and maintain a quality team as that is necessary for OOS RE success.

Good luck

Leah Congrats and welcome to the CLE!  Let me know if you need any references for work / contractors after your inspection.  Thanks

Originally posted by @Martha Rodriguez :

@Leah Gonzalez I don't have a team in place to invest in Ohio yet

How did you find your team to trust? if you don't mind sharing. It would very helpful for a newbie like me. Thank you!!

I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

https://www.biggerpockets.com/blog/core-four-real-estate-team

I invest locally in Columbus, Ohio

Originally posted by @Leah Gonzalez :

I'm excited to share that finally I am in contract for my first rental property! Duplex in Cleveland OH! Having the inspection tomorrow and probably won't see the place in person until after closing... eek! I am OOS investor in San Diego. Any tips for this newbie?!

Could you specify the numbers and math? 

 

Originally posted by @Jesse DeLeon :

Congrats @Leah Gonzalez! Could you share who you used as a lender?

I am using a lender that is local in SD and I have used professionally before. His name is Joel Berman with Synergy One Lending. 

 

@Leah Gonzalez

Congrats! What drew you to Cleveland? I almost bought there- and I might have a contractor contact still. Prop taxes are super high and most of city has laws in place to upkeep exterior (grass, paint, railings etc) or you get fined- but lots of good deals. Also I think city requires inspection for rentals. Don’t get taken by some property manager companies who promise to do everything and they will buy. They charge all your cashflow into $0 for you.