Getting Started in Cleveland

[Jason Mahon]

I am brand new to Real Estate and looking to get started in the Cleveland Area. I was born and raised here and feel much more comfortable getting started locally. I have been trying to consume as many podcasts/articles/forums and books as possible to educate myself and get prepared before I jump in. I think I have a solid plan to get off the ground but I will need to figure out how to execute it:

1. Buy a distressed property in the Shaker Heights/Beachwood Area and do a "live in flip". The more distressed, the better because luckily we won't have to actually live through the flip. It will need to be our primary residence for several years to avoid capital gains tax.

2. Make small improvements to the home that we are currently in so that we can rent it out. The home is in Mayfield Heights and is completely paid off.

3. Take a HELOC out on that home and execute the BRRRR Strategy in East Side B-Class Neighborhoods (or wherever we can find value at our price point).

I realize that these things won't happen over night, but the plan is to slowly establish a foundation that I can start to build off of as my experience grows. I was a little apprehensive about posting but I want to get involved in the discussions and start interacting with people that have successfully pulled off what I'm looking to accomplish. Any tips or advice for someone getting started would be much appreciated, but I ultimately just wanted to start posting in this Cleveland specific forum.

[James Wise]

Originally posted by @Jason Mahon:

I am brand new to Real Estate and looking to get started in the Cleveland Area. I was born and raised here and feel much more comfortable getting started locally. I have been trying to consume as many podcasts/articles/forums and books as possible to educate myself and get prepared before I jump in. I think I have a solid plan to get off the ground but I will need to figure out how to execute it:

1. Buy a distressed property in the Shaker Heights/Beachwood Area and do a "live in flip". The more distressed, the better because luckily we won't have to actually live through the flip. It will need to be our primary residence for several years to avoid capital gains tax.

2. Make small improvements to the home that we are currently in so that we can rent it out. The home is in Mayfield Heights and is completely paid off.

3. Take a HELOC out on that home and execute the BRRRR Strategy in East Side B-Class Neighborhoods (or wherever we can find value at our price point).

I realize that these things won't happen over night, but the plan is to slowly establish a foundation that I can start to build off of as my experience grows. I was a little apprehensive about posting but I want to get involved in the discussions and start interacting with people that have successfully pulled off what I'm looking to accomplish. Any tips or advice for someone getting started would be much appreciated, but I ultimately just wanted to start posting in this Cleveland specific forum.

 If I were you I would simply buy a duplex in Shaker that is already in great shape. You would then only need to spend what $7,000 or so as the down payment would be 3.5%. Now you've got cash flow coming in to pay your mortgage so you're living very cheaply. From there stack cash until you've got 25% to put into your 1st non owner occupied purchase..........Keep rolling things from there. Maybe move out of the duplex eventually and buy a bigger single family or something with a low down and make the original duplex a 100% rental etc.......