All Forum Posts by: Da'Shawn Murphy

Hey BP Family!,

I had a question to you all. I found a few rental properties in Cleveland, Ohio that are in D class and C- class neighborhoods that are under $100,000 (besides one) that can produce between $7,500 and $12,000 in net cash flow annually. My question is, is this enough for an investor to want to be the cash partner in a 25-75 (where they would receive 75%) split partnership or is this too low?

As I a young person who's trying to get started in the world of real estate investing, I am trying to aim to get some sort of start before graduating college. I figured finding a deal with a decent return could be of benefit, but I also know that some people have their preferences of what a "good" deal is and where they would want to purchase.

I wanted to ask before I tried presenting the idea so this way I would know if I need to refine my search!

Thank you to those who respond!

I have understood that "Cozy" is pretty good software as well. The software makes tenant screening simple because the potential tenants will pay for their application fee and all of thei data is secured within the programming. They can also submit maintenace requests through the platform and pay rent through it. It also allows you to automatically add a late fee if the tenant does not pay on a specific date. The downside is that it usually takes 5 days for the funds to reach your account and also the lack of book keeping. Wave and Stessa seem to be good for the book keeping purposes for tax time.

Hi @Zeke Liston and @Remington Lyman, could I also get the recommendations you guys have?

Yes and the good thing about 203K loan as Landon mentioned is that the renovation cost is wrapped into the home loan. This makes it easier to pay on because it's just one total loan. They have two options though between streamlined (repairs up to $35,000) and the full (projects over $35,000), so you would just have to figure out your repair cost.

Hey BP Family,

Is there anyone interested in a short-term rental? We usually AirBnb the property but some people do stay between 1-6 months. The property consists of 8 bedrooms, 4 bathrooms, 2 kitchens, over 3,000 square feet, 1 lot that can hold up to 4 vehicles as well as a 1 car garage with a driveway. The property is located in the Fairfax area of Cleveland, OH. The owner with the largest share is in Italy and ready to release this from there portfolio. The owner is willing to sell this property for approximately $215,000 (though price is negotiable), as the AirBnb typically brings in between $52,000 and $57,000 of annual revenue. Most of our customers are in the medical field, primarily traveling nurses/doctors, since we are minutes away from several hospitals such as Cleveland Clinic (Main Campus) and University Hospital (Main Campus).

I am the primary handyman when I am home and one of the people who manages the property in case any of the residents need anything. I also do the tours for residents since some of them are also foreigners and they want to ensure that they are using the equipment correctly. Included in the purchase price is over $40,000 of inventory. Every room has beds, each living room and kitchen has furniture and appliances, and there is also washers and dryers in the basement. 

My grandmother and I are the first points of contact to reach the owner, if anyone has any questions or inquiries or know someone who may be interested, please do not hesitate to shoot me a message and I will get as much information to you as possible.

Thank you

I woiuld have to agree with Ryan! Realtor and even Trulia's crime rate tool is helpful to gain an idea of how bad an area may be, but ultimatrely you would want to view the environment yourself or have a trusted realtor or property management group to give you insight. It's some neighborhoods that when looking at the crime indications may seem worse than what they are, but once being in the environment, you may see that the homes you are interested in are actually in a well "C+ or B-" area.

@Anna Buffkin I became even more thrilled reading your summary on a few deals you have done! That is amazing, and it was really inspiring. Were the strategies you used learned over a course of your investing career or did you consult with other investors? Also, is the Greenwood market a more feasible market as far as cost? 

Sorry if it seems that I am asking a lot of questions but, I will be new to real estate investing (as far as ownership) upon graduating college and I just enjoy learning about different ways people have funded deals, especially when they didn't start off having a huge income.

Hello Kyle,

I agree with Antoine that you can do either because it ultimately depends on what you prefer. To my understanding you have 4-10 homes that you can get in your personal name that some people state may offer a lower interest rate than your LLC (I would contact your local credit union or bank to verify). Also, I also came across that if you start the home off in your name, then try to move it over to an LLC, you could run the risk of the total payment being due (again contact the bank or credit union to check). Hope this helps some!

I agree with Bailey, great question! I already see great tips outside of networking and driving for dollars so I know this will be insightful.

Congratulations!! @Tyler Scruggs That is amazing to get that done in the primary ages!! I have the exact same aspirations to house hack in our city of Cleveland to help get my start as well. This is a great accompolishment because now you have something to build on. Do you mind if I PM you becuase, I do have two questions since your path is similar to my future path.