Looking for an investor friendly realtor in Cleveland, Ohio

[Vlad Kot]

First time out of state real estate investor. Looking for an investor friendly realtor to help investing in Cleveland. 

I am interested in purchasing a multifamily home in the Cleveland area, in a class B or C area, for 100-150k. Because this will be my first time, I am looking primarily for a turnkey and an agent who can help me organize the process (advice in determining the right neighborhoods/areas, setting up with property managers, inspectors, lenders, anything else I might be missing).

Summarized requirements:

- single or multi family

- B/C neighborhoods 

- property price ~ $100-150k with 20% down

- ~$500+ net cash flow per door

- the property should be in a good neighborhood (so it should be possible to rent it to a long term tenants without any major issues like long vacancy, evictions, etc)

- it should be in a good condition (no frame damage, no major repairs required for the next few years like roof, furnace, full house repiping, boiler, etc or any other similar expensive fixes)

There is a possibility that something written above sounds off or looks weird. If you could give me an advice so that I can adjust my expectations, I would really appreciate it.

Does anyone know a good real estate agent I could work with who can help me to get started on this journey?

[James Maradits]

You're probably going to have to compromise somewhere on your criteria/expectations. 

It's going to be near impossible to find a property that hits the $500+/mo net cashflow number in that price range.

It would be pretty easy to work some scenarios with the end goal in mind to see what kind of numbers the deal would need to have in order to hit your goal.

Let's assume there were a $100,000 property in a C area that needs little repair before renting ($5k).  Let me express that this alone is going to be tricky to find in our current low inventory market, but we'll put that aside for now.  In most of Cuyahoga county the property taxes are (or will be assessed to) roughly 3% of the property value, so in this case we'll use $3,000/annually to keep it simple.  C class properties worth $100k will generally rent somewhere in the $1200/mo range.

$100,000k purchase price financed with 20% down at 7.5% interest (typical range for investment currently)... your PITI would be roughly $865/mo

Rent: $1200/mo

PITI: -$865/mo

Property Management: -$120/mo

Cashflow before ANY expenses, vacancy/capex reserves, etc.: $215/mo

Setting aside even 8-10%/mo for any type of reserves and you're under $100/mo cashflow.  In order for this deal to hit $500/mo the purchase price would have to be almost exactly half, or $50k OR the rent would have to be $1600+/mo which is going to be highly unlikely or unattainable in a $100k property without doing any major renovation.