All Forum Posts by: Lincoln Coverdale

Robert Arquilla - to echo the above comments, 2% rule will be hard to find. We just picked up a rental in Cleveland Hts and are looking at about 1.5%. Which we feel is very good. We would have taken 1.25% based on the property. We specialize in Shaker Hts and between the taxes, point of sale and rental rates you will be hard pressed to compete with areas like Warren. We live locally and prefer to work in our backyard rather than further out. We also appreciate the stability of these areas and in turn the low tenant turnover and vacancy rates. Good luck

@Tom Kuhen - I am assuming it is a 3 bed 2 bath.  If so I would think your all in sale price would be $125K or less.. Much more than that and your are marketing to a much smaller buyer pool.  I have no idea what your plans are, but if you plan to use a real estate agent for the sale you will have about $8,000 in commission and $1,000 in closing costs, so you would be sitting at $116,000 to cover your investment.  

I see above that the taxes are high, you can not have them re-assessed until 2017, if they will reduce at all, so make sure to factor that into your carrying costs. If you sell before they are reassessed you will have a harder time competing with similar listing with lower taxes.  

I'm guessing they have not completed the POS inspection.  If not you will have a heard time coming up with an accurate budget for repairs.  Things you might think are fine may need to be replaced/repaired,  UH is big in garage floors right now.  A few small cracks and they may require a complete replacement ($2400 approx.) for a standard 2 car.  We just had this done on a house in UH.

Just my .02 based on recent experience with an owner turned landlord that can not sell 

Good luck

Tom Kuhen University Hts is a complicated market because there are so many similar homes. As an agent we have seen the struggles in the area including having clients that can not sell without over investing. As investors we have very strict guidelines for investing in University Hts to avoid losing money. If you want to discuss more PM me, I am a HUD certified bidding agent as well. You should also know that with the transition to Sage acquisitions we have seen recent HUD homes have listing prices that are not condition and location appropriate.