All Forum Posts by: Andrew Weiner

Too risky in my opinion, I have a client that was in a building that ended up banning all rentals, including long term rentals and they took a loss on that unit.  In general I don't like the idea of giving up control of anything I don't have to with my properties.  

Hi Yazan,

Since you are local I would recommend driving through some of the neighborhoods that you are interested in. What you see on the MLS, or online is great to learn from but nothing beats walking the streets and getting a feel for the neighborhood. You can even schedule some tours of rentals that are available and see what the current inventory looks like and what it is priced at. This should help you in evaluating properties. For someone just starting I recommend buying something relatively turn key, sometimes start up costs on a vacant can be higher than expected. Also if you are looking in Cleveland proper watch make sure you can pass the Cleveland lead inspections, if the windows, doors, or siding are in bad shape it can be expensive.

Good Luck,

Andrew

I agree with @Nicholas Misch, Its all about having appropriate expectations and doing good due diligence.  Neighborhoods make a difference, getting in at the right price makes a difference, management makes a difference, and lastly a bit of luck.  There are plenty of good value buys left in Cleveland, they might require a some more searching than they did a few years ago but that is what it seems to be nationally.  

I manage a number of single families in that area and those properties tend to do well.  Make sure to work with someone who deals with City of Cleveland properties because there are some local ordinances that you would want to make sure you are up to date with.  If you need some realtor referrals let me know.  

Hi Inbal,

When you say foreclosure/auction agent what do you mean specifically?  You want someone to bid on your behalf at a local auction?  Most of them are online now and you wouldn’t need an agent.  
As for contractors please do your homework and look for someone with lots of experience and references.  I regularly get calls from people undertaking large projects that aren’t being done properly or just issues with their contractors completing.  

Hi Ivan,

It’s a bit hard to help without some more specifics on what your goals are but here is some general advice.  The city of East Cleveland is generally considered an area that’s very difficult to collect rent in and manage. All of the “Heights” are good if you can find a deal, Clark Fulton is inexpensive but can be a challenge to manage in and get good tenants.  Gordon square, Ohio City, tremont, have been gentrifying and offer a higher end feel and sometimes more qualified tenant base with a higher acquisition cost.  The budget and goals will ultimately dictate if one area might be more advantageous over another.  
Good luck!

What level of work needs to be done?  Full interior rehab like to the studs, or just cosmetic like some paint and cleaning?

If I understand your question then I would use separate funding to pay for the second property and keep them independently funded so that the risk of each deal is more spread out.  Ultimately if you personally guarantee each loan then they are linked back to you but for some reason it just feels better in my mind but I don't know if there is a clear cut better way to do it.  Good luck on the growth.

Are they specifically referring to snow or the economics of the area?  There are a lot of people investing in Cleveland that have made A LOT of money.  It seems over simplified to say that a region can't be profitable for real estate investment.  

In Cleveland most owners do not provide snow removal except in multifamily buildings with parking lots so that isn't a huge deal.  You do have to stay on top of maintenance at the property and make sure that you are budgeted for capital expenses over time.  That being said there are lots of great properties in the market that can be money makers, there are several agents on this forum that focus on investment properties and should be able to help you find something.  Just make sure you know that the neighborhood is, I have seen lots of international investors lately that want cheap homes in bad neighborhoods because the numbers look good on paper.  They key is that they only look good on paper, reality is that many managers won't go to bad neighborhoods or you will possibly be dealing with more issues on a regular basis.  

I highly recommend coming to see the city before buying, it can be very eye opening and will help you understand your investment.

Do you want to whole sale the deal or buy it outright?  If you are buying it directly you can send a purchase agreement, I’m sure you can find out online, and then get started with a title company.  This is a bit over simplified but if you have a friend who is a realtor they can probably recommend a title agency.   If you are financing then there are a few more steps but the lender should tell you what you need to do.

If you want to wholesale it then I have to say I’ve never done it personally but I think it’s not so far off, just you need to make sure you have the right to assign your purchase agreement.  I’m sure someone has some documents posted online.