All Forum Posts by: Christopher Sandys

Quote from @Remington Lyman:

Quote from @Shuff Mauldin:

i agree with @Caleb Brown - really get someone you trust to eval the crawlspace. It can eat your lunch on its own.  If it has knob & tube make sure none of it is active.  Pay to have the sewer lines camera'ed.  If the windows are original prepare for a crazy power bill & budget for double the normal insurance cost. 

If you do end up purchasing, ADT has a feature which will monitor the elect in the home and alert you to any potential hazards/hot spots.  I recommend getting it.  

 A lot of the rental properties I see in my market have knob & tube. Most of the time the investor needs to get comfortable with if they want 1-4 unit properties that cash flow.

I agree.  I see knob-and-tube on a very-regular basis. A lot of landlords may have it and not even know it. 

Usually, parts of the house have been upgraded over the years.  I will find ROMEX and Metal Clad at the service panel and in the walls.  But when I get up to the attic there is frequently a mix of new wires tied to knob-and-tube using junction boxes.  

It's kind of funny, actually.  Upgrades start at the basement and go up through all the walls.  But when they reach the attic they stop.  Why?  Because it's cheaper to tie into the existing than to spend a few hundred more putting in new.  

Quote from @Michelle Fenn:

I am a realtor and investor in Cleveland area. I have just sold off the last of my 100 year old Cleveland properties, even though I owned them all free and clear and they were purchased during the last crash. Why local laws. In Cleveland they have enacted Residents First, which translates into a narrative that out of town landlord are "evil" They also enforce a Lead Safe Certification Law which requires that all rentals built before 1978, must pass a Lead Risk Inspection every 2 years. This means you better have new windows, doors, vinyl siding, LVP flooring, composite porches and no bare dirt anywhere. This month a client was required the paint backboard of the garage mounted basketball hoop because there was flaking paint. I personally live in a 100 year old home and after spending a week each painting the basements of my rentals bi-annually, they now look better than my own home. The trend to enact such laws is spreading. Cleveland Hts, Toledo; all the rust belt cities are considering this kind of legislation. 100 year old homes can be charming, desirable and more affordable than a new build but look to local laws. Cleveland's lead safe certification makes it a constant maintenance issue. They claim to have funds to assist landlords in making required improvements, but in 5 years have failed to figure out how to administer disbursements. HUD has now given Cleveland two extensions to spend the funds or return millions to the federal government.

A lot of people will be watching how Cleveland's "Resident's First" experiment goes.  

Essentially, Cleveland city council determined that absentee landlords (non-local) are responsible for neglected rentals.  The solution they came up with is a local agent requirement. If you own a rental but don't live there you must find a local agent to represent you, and this agent will accept all civil and criminal culpability.

That's a dirty job, but someone has to do it.  For a fee.  Which the renters will ultimately pay.  

Same for making a house occupied by a sixty-year old couple "lead free" to save them when they chew on the window sills.  Thank goodness for that.   I know the renters will be pleased to pay for that also, and I am grateful to Cleveland for protecting our seniors.  

All these taxes, and that's what they are essentially are, makes the entire market unattractive.  There's no way I want to invest in Cuyahoga, and that's a shame. That hurts everyone's values.

Quote from @Jimmy Lieu:

Onyx is an entirely different category than Beverly or Glendale-Heatherdows.

Beverly and Glendale-Heatherdowns are primarily middle-class, safe neighborhoods.  Although some of the houses on the right streets in these areas will go for $300-$700k (River Road, on the river side for the high end).  
  
Onyx ... don't walk outside at night.  It is ghetto.  This neighborhood is also called the "inner city" and "City Park." Being from CT, you may know some of the barrios of Stamford Fairfield County.  Think of Henry Street in Stamford ... 15 years ago.  Onyx is worse.  

If I am renting to anyone there, whether that be a single family home or a multi, it would have to be Section 8.  Otherwise, be prepared to deal with excuses and always chase-down rent.

Quote from @Joseph Tadres:

Chris, I’m in Ohio and have looked at a lot of those $50K Toledo fixers. The numbers look great on paper, but the neighborhood can make or break you. You might get $1,200 rent, but turnover, repairs, and tenant issues can eat that up fast.

I’d walk the area, talk to local PMs, and see the true demand. Some do well with Section 8 in those spots, but if you want fewer headaches, look at $70K–$90K homes in more stable pockets. I can share a few Toledo areas where the numbers and tenant quality are better if you’re interested.

 I have had nothing but good experiences with the Section 8 office in Toledo.  It is called Lucas Metropolitan Housing Authority (LMHA).  

The deal with Section 8 is the guaranteed check, on-time, every-time.  Now... the other part.  Section 8 tenants have a terrible reputation and it is well deserved.  But just because you choose to pursue a Section 8 tenant doesn't mean you have to accept whoever.  You still get to do your screening and refuse anyone, in a legal manner, that fails your legal criteria.

My favorite:  A family of two adults, 4 children, and 2 dogs.  The youngest kids are 8, and I fully anticipate the soonest turnover to be 10-years out.  The downside:  They put a LOT of wear-and-tear on the house.  Example:  The click-and-snap vinyl planks from Home Depot didn't stand a chance in the bathroom and kitchen.  I am replacing it very expensive, permanent adhesive linoleum.  The kind you typically NEVER see in a rental, but will frequently see in a hospital.  Obviously that hits my returns.  However, I'm fine with the trade-off, because I expect the floor to have a serviceable life far beyond me.  

So - that $60k house might actually be a $90k house by the time you are done.  Still a good investment?  Oh Yes.  

A couple of years ago I recall seeing someone posting of a Toledo Lead Inspector that was fair to landlords.  Any idea who that is?

Maybe it was Adam A, but I don't think he's in that business anymore.  I can't reach him by email or phone.  

Could someone please provide a link to what, exactly, a "lead control order" is?  What triggers this?  How is the Health Department deciding which houses will receive this order?

I wonder if this is the reason the house was sold.  It's not out of the question that the liability of this order may exceed the asset value.  

Please see this website:

Lead Prevention | Toledo Lucas County Health Department

Expand the portion that says "Before Purchasing or Selling a Home."

"DO NOT sell your home with known lead hazards without disclosing this to potential buyers.  This act is illegal."

• DO NOT sell your home with known lead hazards without disclosing this to potential buyers. This act is illegal.

• DO NOT sell your home with known lead hazards without disclosing this to potential buyers. This act is illegal.

I have worked with a handyman - Nick at Hard Work With Pride.  He's really reasonable.  

Link:
Photo for Hard Work With Pride

Photos 1, 2, and 8 on this page are my house: before and after.  

Man - I wish I had some cash!   This sounds nice.  

James, if you're investing in Toledo (and I know you are), then you need to know about this website:

AREIS ONLINE | Lucas County, OH - Official Website

This is the run by the Lucas County Auditor.  It is a treasure trove of information.  

To keep this on-topic, check out this address on Aries:

4045 Heatherdown Blvd

See who owns this?  The Lucas Metropolitan Housing Authority (LMHA).  That's the "Section 8" office in Toledo.  They own large housing projects, mainly near downtown.  But that's not enough, so there's the community voucher program.  But that's still not enough, so they now own Single Family Homes around Toledo.

This particular house came to my attention, because there was a murder there last year.  Young toughs with guns.  But two things didn't make sense.  (1) This neighborhood.  It's not like that at all.  (2) This house is too expensive to be rented out for a Section 8 Community Voucher.  

Well - now we can see the whole picture.  No free-market would buy this house in this neighborhood and put a single-person in it.  LMHA has owned this house for a very long time.  

The reason I mention this is:  LHMA does this, because they need more Section 8 landlords.