Share with Us Your Beautiful Cash Flowing Property!
Joseph MatsushimaPro Member
Investor · Los Angeles · Member since 2020 · 15 posts · 103 votesShare with Us Your Beautiful Cash Flowing Property!
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Real Estate Agent · Cleveland OH · Member since 2015 · 216 posts · 275 votes
3yI have 2 cash cows. Both were purchased right after the 2008 crash. The first came in 2009. It was a duplex in a gentrifying neighborhood Ohio City in Cleveland Ohio. The home was owned by California investors that were attempting to renovate it using a local property manager. I purchased the home for 43,000. They previous owners were unable to get an occupancy permit due to a gas leak. After my purchase I spent a couple days with plumber that identified and corrected the leaks. It has been continuously tenanted since my purchase. My vacancy rates have been so low that I upgraded units during tenant vacations. The 1890 house sitting in the middle of new townhouses selling for 300,000+ is on every investors radar. I get offers to purchase this property for 200,000 or more almost daily. The property was fully depreciated years ago and has appreciated more than 100%. Even with the below market rents that make may tenants never even consider moving my cap rate is 13%. The other property was purchase in 2014 in other gentrifying neighborhood, Tremont/Metro West for 13,000. I was able to do a to the stud renovation using 2% public financing CASH Cleveland Action to Support Housing. After major renovations, this also has been continuously tenanted. I renovated it to be used as an AIRBNB, but elected not to invest the extra time, though it's location near a major hospital with no nearby hotels would make it a hot property. My 10 year loan was paid off early and this one has a cap rate closer to 15%
57 Replies
- Member since 2023 · 1 post · 0 votes3y
hello all of you great investors I am a 17 yr male from Kentucky and I want to pursue this type of work when I get out of school but I just don't know where to start and I would love to be token under one of your wings and learn from you so I can do better in the future feel free to reply if you would like to be that person if not thank you any ways.
- Real Estate Agent · Cleveland OH · Member since 2015 · 216 posts · 275 votes3y
Quote from @Joe Scaparra:
Great transactions, love to hear your stories. I too have a bunch of great ones but I don't want to make anyone jealous. However, i do want to pass on a little advice that might help everyone in the long term.
I will start out by saying go by and look at my profile. As this tidbit I am about to share relates to my profile.
Before you buy any investment, write down you goal and your WHY (especially true for real estate). If you do that it will keep you grounded if you keep referring back to it when it comes time to buy OR SELL.
What I am getting at? After reading my profile you will realize that ultimately I invested for CASH FLOW (Goal). My Why is what drives my motivation and keeps it on track and my WHY is this: TO PROVIDE PREDICTABLE, SUSTAINABLE CASH FLOW TO FUND A ROBUST RETIREMENT UNTIL I DIE.
Pensions are predictable, and sustainable. We all need them, unfortunately we don't have enough of them. Social Security is a pension. So are my 19 rentals. Each one a separate pension. If you flip a home or property you have no pension. Usually when you get a good windfall, YOU SPEND IT! We don't invest in real estate to MAKE MONEY. MONEY is not an end to it's self. It is a tool to help us in life and I use CASH FLOW to live life abundantly EVERY DAY not for just one year!
Once you have a goal and your WHY (which BTW is most important) then you can analyze which type of property might be best for your locale, and situation. I am almost strictly invest in duplexes because we have a lot of them in TEXAS and they CASH FLOW well and lastly they are less risk and easier to manage than SFHs. A four plex or apartment bldg might cash flow better but I got started with duplexes and now I feel very comfortable with the ease of management as I am 67 and this dog does not want to learn a new trick. Different type properties can work, you just need to research which is best for you. But don't try to get rich overnight with real estate, GET WEALTH over TIME! Cheers.
- Real Estate Agent · Cleveland OH · Member since 2015 · 216 posts · 275 votes3y
Great Advise. I am a true case of the accidental investor. My husband died in 2009 crash leaving me at 52 with a key employee insurance policy. The market was tanking, so I invested in real estate. I am now 65 and own a dozen rentals that all cash flow. I no longer need to work, but my journey has led me to a real estate license, owning a commercial general contracting company and property management. A big change from my former life as a computer consultant that left her company to take care of her husband. Though I agree with much of what you say, I disagree that duplexes are easier to manage than single family homes. You always have the problem of finding compatible tenants. My experience with property management highlighted to me that it is a lot more work to manage a small apartment building than a duplex or SFH. My favorite investment is a single family home in a good neighborhood. Tenants tend to be longer term, they will do their own landscaping and pay all the utilities. They are also easier to sell if you need to raise capital quickly. Due to the pandemic eviction moratoriums many investors that were denied writ of possession by the courts elected to sell to owner occupants. I have seen data suggesting that up to 20% of the SFH rentals were sold during the pandemic. This is the preferred housing option of most tenants and they are getting difficult to find. Duplexes are my cash cows but my SFH are the investments I will count on for my retirement income as I grow older and continue to self manage. I am also looking more seriously at seller finance to reliable existing tenants. The time window makes it a good option for retirement planning. Cash flow without the maintenance calls.
- 3yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
@Joseph Matsushima what info will you need?
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