Rental Property Investor · Amherst, OH · Member since 2017 · 66 posts · 35 votes
Hello BP! I just closed on my first buy and hold property and wanted to share my success with everyone! I never would have been able to do it without the help of the BP community!
I actually considered getting into REI over a year ago, however I was quickly talked out of it by friends and family. Then in the spring of 2017 I was referred to BP by a friend and I finally found the courage to jump in! This year I have read alot real estate books, listened to many of the podcasts, and done research in the forums.
I would like to give a special thanks to @Michael Swan for all of your advice and encouragement along the way. I purchased a duplex in Euclid, Ohio on December 12th from Swanny and here are the numbers.
I'm glad I could help Mike get started!! I still have 4 single family in that area and a 12 unit there too. If Mike gets 9 more little deals like that, (his numbers are a bit conservative) and if he kept plenty in reserves like I suggested to begin, he could get about $40,000-$50,000 cash flow from 9 little rental properties (duplexes). That's what I did when I purchased 10 little single family here in San Diego in 2011-2012. To my delight, all 10 nearly doubled in value and I 1031 exchanged them for apartment complexes in NE Ohio in Mike's neck of the woods and went from $50,000 cash flow to the current $160,000 cash flow per year.
@Jason Pabon thanks and congrats on your first rental as well! I looked at properties closer to my house but couldn't beat the price to rent ratios in Euclid. I like investing there because of its affordability and proximity to downtown Cleveland. There also is a high demand for rental housing in Euclid so vacancy costs should be relatively low. Good luck with your future investments!
You are 100% correct! We have seen a huge spike in rental demands in Euclid. Now that Amazon is moving in, that demand is growing as well!