Updated about 8 years ago on . Most recent reply
Help me analyzanalyze this deal
Truth is stranger than fiction. I'm a former motivated seller. The saying goes everyone pays a mortgage, either yours or someone elses. At this point I'm working on my real estate license in CA, because I need to learn.
However I'm a shelter buyer and future live in landlord. Like it or not real estate speculators are in no short supply in California, outbidding shelter buyers. So I am forced to look elsewhere for a deal that cashflows. Listening to the podcast, I heard about Cleveland, Ohio. I plan to live in one unit and rent out the others. Would anyone touch this deal with a ten foot pole?
Perhaps someone could speak to the level of crime, tenant quality, hot summers, cold winters. This home is built in 1904, the year my late grandmother was born, and so I'm curious what challenges such old construction brings. Any advice? I can buy this place cash, but the taxes I heard are high. Please advise me on this deal. Thank you BP.
10519 Helena AveCleveland, OH 44108
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#4 All Forums Contributor
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Moving from California to become a live in landlord in that house would be the worst decision of your life. Don't do it.
That is a very rough neighborhood (See Ultimate Guide to Grading Cleveland Neighborhoods) & I suspect you will be in for a culture shock you are not ready for.
Lot's of national buyers hear that Cleveland is cheap. Which compared to other markets it is but it ain't that cheap. You are going to need to spend at least $100,000 to get a duplex that would be a reasonable place to live in while the tenant pays off the mortgage. This isn't 2013. The market has rebounded and insane deals are gone.