All Forum Posts by: Ed Perez

@Ed Perez 4k rent in Cleveland is a tough sell from my opinion, that price point people have options and most likely would mean short term rental with high turn over and expensive upkeep. Go for the cash, if you can make 100k on it do it.

(I am from CLE, lived there a long time and an active investor in the area, so can speak for CLE market.)

Hi Jeffrey, thanks for the reply. The property I have is located in Hudson, Ohio and the average property valuation in Hudson is $320,000. I don't think the highest price point in Cleveland can come close to Hudson. According to my realtor, we can list the property between $975k and 1.M. A property in the area was just sold for 1.1M within 60 days. Just like Cleveland, I've always invested in Akron, Ohio where I get 15 to 22% cap rate. The city of Hudson is a different ball game, like major league compare to a minor league.

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Originally posted by @Jeffrey Hotz:

@Vince Lucas I have a lender that will lend in Cuyahoga county at 75% of purchase price, if that helps. I don't think theres much season required.

If its outside Cuyahoga then I have a lender that will lend 75% based on appraisal and only 1 month season.

(I am from CLE, lived there a long time and an active investor in the area, so can speak for CLE market.)

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Hi Jeffrey,

Thanks gor the reply. Nothing in Cleveland has a good public school district. I'm merely speaking about the suburbs of Cleveland. This property is located in Hudson, Ohio where the lowest price point in Hudson is the highest in Cleveland.

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In real estate, you win some and you lose some. In your deal, you hit a home run! Congratulations!

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Originally posted by @Vince Lucas:

@Matt Motil Do you know any lenders that will lend loan to value within 6 month of purchasing the property and/or when property is in a LLC?

Hi Vince, I also do private lending to RE investors, but it really depends on the area as i like my money invested in safer communities. I see that you're in the Cleveland area. You can just PM me and discuss it further. Thanks

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Originally posted by @Matt Motil:

You flip it you make 100k soon versus making 100k in about 3.5 years. In my opinion, you keep it and rent it out at those numbers unless you're hurting for the cash. Best of both worlds would be to finish the rehab, place tenants and then do a loan-to-value cash out refi and have your cake and eat it too.

Hi Matt, thanks for ypur reply. As i mentioned to Troy, I will just rent out the place and still keep the property. Thanks again

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Troy,

Thanks for the reply. You're completely right that I would be breaking even as far as the net profit is concern between 3 to 4 yrs. I think I will just rent out the place yo a nice family (hopefully nice). Thanks so much!

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Originally posted by @Troy Zimmerman:

Seems like a fairly short payoff. Wait three years and you will have roughly the same amount to go and find the next deal. Although the cap rate isn't outstanding, have you considered leveraging the current property? Interest rates are low, and this might give you the best of both worlds. You could potentially keep your property and find a new deal that cashflows a little better. Best of luck!

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Originally posted by @Jeff Sprunger:

Wow, it appears that this property is a very nice part of Cleveland, if you are pulling $4100/month for rent. so, you shouldn't have any tenant issues. Could probably get a very good tenant to sign a 2 or 3 year lease. this would eliminate you decision to make about selling, at least for now.

What would you do with the $100K? reinvest? take a vacation? 1031? maybe, pay off/pay down a few other properties so they are free and clear. how long have you owned this home, more than 2 years (capital gains)?

so, the answer always is...it depends. only you truly know your situation and are in the best position to make the best decision.

Hi Jeff,

Thanks for your reply. Yes, this property is located in the suburbs of Cleveland and is one of the most desirable place to raise a family. To answer your questions, I got this property last July '16 and the original plan was to flip this property and reinvest the proceeds into another property. For some reason, I'm not that attracted to 1031 exchange, as I prefer to face all tax liabilies as oppose to rolling it over. No, i have not live in this property 2 years within the last 5 years.

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All Forum Posts by: Ed Perez

Ed Perez has started 6 posts and replied 42 times.

Post: To rent or to flip is the question

Post: To rent or to flip is the question

Post: To rent or to flip is the question

Post: To rent or to flip is the question

Post: Accidental $291k cashout refinance... Biggest BRRRR Deal yet!

Post: To rent or to flip is the question

Post: To rent or to flip is the question

Post: To rent or to flip is the question

Post: To rent or to flip is the question

Post: To rent or to flip is the question