All Forum Posts by: Andrea Hauserman

I like the towns around Cleveland with no POS for investment. It's funny when the out of town investors come in and are afraid to go 30 minutes away from downtown Cleveland I guess because they think it's the sticks. Give me a town that has jobs and if you don't live there you have to drive miles for housing = perfect rental town. You just have to keep an eye on the market and high return places do come available.

Just got a quote from Erie for insurance and the premiums are about $200 per SFR less than what I'm paying at USAA with appreciably the same coverage - full replacement value, $300,000 liability etc. Their quote on a 4-plex was almost $700 lower than another company. What can you tell me about Erie? Thanks

Electrical concerns first

Bumping this thread. Cleveland area investors - where have you actually done a HELOC on an investment property?

I'm selling a package of 8 duplexes. According to my research a pure Cap Rate does not include property management expense. Haven't used a property manager, however all repair and maintenance expense has been included. Would you include a Pro Forma Prop Mgmt expense in your calculations?

Also the markets have moved a lot in the last year. What used to sell for a 12-13 Cap is now a 7 to 9.  Loopnet even has a local 12 unit building offered at 5.7 right now.

How are buyers viewing this? Obviously if your other choice is 2% in a bond it may be a preferable investment if the building has been well maintained - at least IMO. Are you finding larger B deals where you can make in the teens? I'm not - in Cleveland OH area. I can find it in SFR's in the lower rated school districts, otherwise it's tough. Even my small town investments have moved up.

If anyone  can answer my question about including Prop Mgmt expense in Cap Rate calculation I'd appreciate it.

Great points Eddie, I wonder if there is any way to reset the depreciation- that would be a major drawback.

On behalf of myself, not my work as an agent (thank you moderators), I'm looking for information about any consequences or considerations when selling an Ohio single man LLC with it's own tax ID that holds multiple rental properties, vs selling the properties individually. I understand the income tax considerations re: the cost basis of the depreciated properties, I've been told that property taxes might not get automatically get reviewed as they might on a direct sale, I've talked to a title officer about title search. Besides a huge reduction of paperwork, what should I know about this? I think I understand the positives, I'm looking for the unexpected twists in tax or legal. I understand this is akin to selling a company, but is there anything special about the company having been formed to hold only real estate?

pretty simple to me, people don't see an opportunity to make a living. Can you break out data on CA cities by illegal and legal immigrants?

You're a gateway state, Ohio is not.

Helen, job opportunity is the # 1 reason for pop decline in CLE. In 1996 there were 15 Fortune 100 companies in CLE, today there are Eaton, Sherwin Williams, KeyBank, maybe PNC. When big companies leave the demand for middle Mgr and executive housing and perks dwindles. Our golf courses have merged, turned into parks etc. Ancillary small companies of every kind die, move or adapt due to lack of demand. Whereas people with a HS education used to be able to get Union jobs with Fabulous benefits making exorbitant incomes exceedingly $100k/ yr with overtime .... went on welfare and food stamps. Cleveland metro has aging housing stock - it costs money to take care of them. Taxation in Ohio at the corporate level was among the highest in the the country. If you were a businessman would you move manufacturing to a lower cost area without Unions? ??? Yes you would. 

And they did. Ohio traditionally had a low rate of college graduates remaining instate - I was one of those - I left to go to ATL after college where there was business and job growth and a new city.  So Ohio is now gratefully on the upswing - recent governors and state legislators have been able to cut taxes to encourage corporations to stay and more to come, Young people see a future in urban Middle America, I won't drone on but CLE is definitely a different place now vs 15 yrs ago- super fun and there's so much business coming back in. Somebody said leave The gritty urban neighborhoods to the locals - agree but there are solid reasons to investment in the area . 

Ian, if you're in Kent there are new city ordinances that prohibit more than 2 different last names on a lease so be aware that a 3 BR can't be leased to 3 different tenants.