Dialing in first property

Cleveland, Ohio
First-Time Home Buyer
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Dialing in first property

Giancarlo Valverde Barriga
New to Real Estate · Los Angeles · Member since 2023 · 13 posts · 8 votes

Hello BP, excited to finally be dialing in my first property. I am looking at Euclid, OH, and have found 4-5 properties that I think work really well for me. I have to go the DSCR route for financing so I have to submit one property to them. I have a few questions if anyone can answer. This is my first investment, so many things are still confusing despite reading books and researching.

- properties I'm looking at are about 100K, CF/month is averaging about 250-350 after running the numbers very conservatively

- CoCROI are about 10-15% and ROI, including equity and such, is about 20-30%. Feeling confident about these properties.

1. If I submit the property to DSCR loan but the property turns down an offer, do I have to reapply for a new one for a different property and get a new preapproval, or let my lender know and they just update it?

2. After showing interest in the property, how much of a window do I have before I have to sign the contract? I need to get a contractor, inspector, etc and will want to have them lined up before signing to ensure I am fully aware of the estimates and can negotiate.

3. I am an investor from CA but can only get my feet in the water in this general area because of funds, so I am looking for a reliable and competent PM in the area that someone may have experience with and able to reference!

Any other guidance is welcome, Thank you all!

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Shane Kelly
Real Estate Agent · Cleveland, OH · Member since 2021 · 383 posts · 361 votes
3y

The contractor is something I would recommend finding a recommendation for from either an agent, another investor, or a PMC. You can have them picked before offering. As for what you mean with relation to the "window" of signing the contract, I'm not 100% what you're asking for here but I can provide an idea that might help. When a property comes on market here in Cleveland, a great deal will be pending in like 1-3 days, a good deal will be off market in like 2-5 days, and even a mediocre deal can still go pending in less than a week in some cases. You have to be ready to act fast.

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  • Shane Kelly
    Real Estate Agent · Cleveland, OH · Member since 2021 · 383 posts · 361 votes
    3y

    The contractor is something I would recommend finding a recommendation for from either an agent, another investor, or a PMC. You can have them picked before offering. As for what you mean with relation to the "window" of signing the contract, I'm not 100% what you're asking for here but I can provide an idea that might help. When a property comes on market here in Cleveland, a great deal will be pending in like 1-3 days, a good deal will be off market in like 2-5 days, and even a mediocre deal can still go pending in less than a week in some cases. You have to be ready to act fast.

    1Reply
  • Giancarlo Valverde Barriga
    OP
    New to Real Estate · Los Angeles · Member since 2023 · 13 posts · 8 votes
    3y
    Quote from @Shane Kelly:

    The contractor is something I would recommend finding a recommendation for from either an agent, another investor, or a PMC. You can have them picked before offering. As for what you mean with relation to the "window" of signing the contract, I'm not 100% what you're asking for here but I can provide an idea that might help. When a property comes on market here in Cleveland, a great deal will be pending in like 1-3 days, a good deal will be off market in like 2-5 days, and even a mediocre deal can still go pending in less than a week in some cases. You have to be ready to act fast.


     great info, thank you. By the "window," I am also uncertain since I haven't gone through the process yet. From my understanding, there is a time frame where I can inspect the property and negotiate with the seller correct? curious as to how long it would usually take (2 days? 4, 5?) before I am locked in to buy the property. If the contractor finds some things that would make me reconsider the deal and back out or create an opportunity to negotiate, there is a time frame before its too late right? maybe I am missing something.

    1Reply
  • Shane Kelly
    Real Estate Agent · Cleveland, OH · Member since 2021 · 383 posts · 361 votes
    3y
    Quote from @Giancarlo Valverde Barriga:
    Quote from @Shane Kelly:

    The contractor is something I would recommend finding a recommendation for from either an agent, another investor, or a PMC. You can have them picked before offering. As for what you mean with relation to the "window" of signing the contract, I'm not 100% what you're asking for here but I can provide an idea that might help. When a property comes on market here in Cleveland, a great deal will be pending in like 1-3 days, a good deal will be off market in like 2-5 days, and even a mediocre deal can still go pending in less than a week in some cases. You have to be ready to act fast.


     great info, thank you. By the "window," I am also uncertain since I haven't gone through the process yet. From my understanding, there is a time frame where I can inspect the property and negotiate with the seller correct? curious as to how long it would usually take (2 days? 4, 5?) before I am locked in to buy the property. If the contractor finds some things that would make me reconsider the deal and back out or create an opportunity to negotiate, there is a time frame before its too late right? maybe I am missing something.


     Oh I see what you mean. It's written into the purchase agreement the amount of time the buyer requests to have the inspection done. I normally do 7 days for the general inspection, meaning my buyer has 7 days to schedule the inspection, have it conducted, and then decide if they would still like to continue with the contract.

    1Reply
  • Giancarlo Valverde Barriga
    OP
    New to Real Estate · Los Angeles · Member since 2023 · 13 posts · 8 votes
    3y

    @Shane Kelly, thanks for your input!

    1Reply
  • Ben Firstenberg
    Investor · Cleveland · Member since 2021 · 247 posts · 240 votes
    3y

    Euclid is a great place to get started! I grew up not too far from there, so very nostalgic for me. Given you're out of state, I'd just recommend trying to get as good a picture of the neighborhood as you can. Euclid itself is typically fine, but there are some rough areas in Cleveland. You probably already know that! Good luck

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