All Forum Posts by: Ed Perez

 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 within the last 5 years.

Hello, I'm just torn between rehabbing and flipping a property I own free and clear or just rent out the property after rehab. I know in this business it's just a numbers game and it just up to you when you want to get paid. Do you want to get paid now and look for the next deal or just recoup the overall $$$ invested over a period time? Should I opt for rent, the monthly gross rent is approx $4150 (or 49,800, cap rate of 5.5% only). My net yearly income from the rent would be $30,670. Should I opt to flip the property, however, I can potentially make $102k (net). This property is located in an affluent community and is in a good school district, and that's the reason why the cap rate is on a low side. 

What other things should I be considering to make a smarter decision? Making a little over 30k a year on a single property I think is a good passive income (less the headeache). To break even, it will take 20 yrs to recoup my investment. Making 102k on a rehab is also nice but, once I sold the property, I'm unemployed once again. I will be searching for another good deal out there.

Most of my properties are giving me between 15 to 22% cap rate (5k yearly income on each). This is the first time I'm torn between the two investment scenarios. 

So, please let me know your thoughts are. Thanks in advance.

Ed

Micheal Boyer, very good point on protecting woodfloor and the turn around on renting. Thanks so much!

Hello All, thank you so much for all of your immediate attention and sharing your valuable input. That being said, you guys made it so easy for me to make a decision. It is 8 - 0 woodfloor ( 8 for woodfloor and 0 for carpet, just like our Cleveland Browns team 😂). I suppose installing vinyl planks (glued down according to Kyle Nelson) is the best way. This will save my original woodfloor as well. Thanks again everyone. You guys are awesome!!!

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Hello, I just evicted my tenants who stayed in my property for only 11 months. Unfortunately, they left my property with damaged carpet, holes on the walls,  in additional to leaving behind their filthy belongings.  Now, I'm torn between getting new carpeting or just refinish the existing beautiful woodfloor. I can save money on new carpeting compare to refinishing the woodfloor, but there's this possibility that my next tenants may do the same thing.  So, it better not to install new carpeting and just refinish the woodfloor? Any thoughts you may share is greatly appreciated. Thanks in advance. 

Hi Zurama, For those who want to partake but couldn't, will the webinar be replayed?

Welcome to BP, Ted! You mentioned that you'd like to make connections with trustworthy people who know their stuff. My advise is to not limit yourself with seasoned investors only. Try not to discount newly investors right off the bat, as they also provide good insights and guidance. They may have already experienced some things that other seasoned investors have not. 

The property is on well and needs a pump and a reservoir tank.  The fire suppression company said that we need to have sprinkler heads in the garage, basement, and bathrooms (that have more than 55 sqft). This property is a ranch style home and has a little over 3600 sqft). I hope I can get better qoutes. 

Thanks Kinney and Gene for your response. The County Building Standard Department here in Ohio mentioned that since we are changing the usage of the property from a residential to R4 (6 to 17 beds), we have no choice but to comply with today's standard, and the property cannot be grandfathered. Getting an architect to professionally design the plan will cost approx 12k (6% of the construction cost). With this amount of money to spend on the design (excluding $46,600 for sprinkler system install), I really have to think twice about venturing into residential assisted living business. The rehab cost is 200k, excluding sprinkler system, fire alarm, and nurse call. It hurts so much thinking how much the initial cost is.

Hello, we are planning on opening a residential assisted living (up to 8 beds) in Ohio. The Board of Building Standard Department informed us that we need to work with a design architect or engineer to draw the plans, and those plans need to be submitted to the building department for review. How much on the average does it cost to hire an architect? Any insight you provide is greatly appreciated.  Thanks in advance.