All Forum Posts by: Federico Gutierrez

Truly wasting your time doing all this. Single member LLC is a "pass through entity" you will be taxed at the same rate if they were in your personal name. All you do is get some legal protection as it's not in your name but tax benefits are zero. Quick google search would of answered this for you.

Only benefit is if you are were a S Corp LLC but that's NOT how you hold Real Estate. 

Which area are you buying this duplex in?
I see your an agent, what would be good advice is ask your broker his thought on the situation

Shaker - NAY due to their POS. One of the Worst ones in Cleveland in my opinion.

Garfield - YAY. POS still lame but no escrow

How did taking the previous to court work out? 

Seller could legit not have know about lead. 

@Matt Thompson also bought 2yrs ago. So BACK THEN the returns could be achieved he was talking about. Now you need a good realtor that can help you achieve this. BUT I do agree I would stay away from Cleveland Heights due to high taxes

ONE thing Matt forgets is YES you can invest in a REIT and that 7% will then be taxed against your income. But investing and holding a property in your name, expenses will be offsetting your taxable income. That figure is not calculated in Matt's statement.

Transfer it the property into YOUR NAME. Banks don't look kindly on LLC's

Has your LLC been operational for more than two years?

A $20k house in Cleveland ain't going to cash flow. You're sadly mistake there 

There is no secret in life you get what you pay for and anything under $55k is just headaches and pain.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $66,500
Cash invested: $13,000

Property was bought off the MLS for CASH in a B Area. Standouts: large kitchen and open floor plan. Fenced in yard. Previous Seller had new ROOF installed in 2016.
Needed to update Bathrooms, Paint. One Failure I made was not change the Furnace. During the Polar Vortex Cleveland had the Furnace blew up and the fire department broke into the property which was VACANT. Destroyed my front door and such off gas. Had to replace, Furnace, add new GAS Line and new FRONT DOOR. Budget went over $3500.

What made you interested in investing in this type of deal?

Area has a big push and the fact it had been on the market for 100 plus days

How did you find this deal and how did you negotiate it?

MLS and being a CASH offer I negotiated it down by $15,000

How did you finance this deal?

CASH

How did you add value to the deal?

Renovated Bathrooms, new furnace.

What was the outcome?

Quality Home that will be headache free as everything has been checked or updated

Lessons learned? Challenges?

Just change the furnace when it's OLD. Prevent fire department breaking in and turning off the gas due to furnace blowing up

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was the agent

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $66,500
Cash invested: $13,000

Property was bought off the MLS for CASH in a B Area. Standouts from the property were large kitchen and open floor plan. Fenced in yard. Previous Seller had new ROOF installed in 2016.
Needed to update Bathrooms, Paint. One Failure I made was not change the Furnace. During the Polar Vortex Cleveland had the Furnace blew up and the fire department broke into the property which was VACANT. Destroyed my front door and such off gas. Had to replace, Furnace, add new GAS Line and new FRONT DOOR. Budget went over $3500.

Tenant pays $950/month. Along with ALL Utilities. I just take care of Insurance and Property Taxes.

What made you interested in investing in this type of deal?

Area has a big push and the fact it had been on the market for 100 plus days

How did you find this deal and how did you negotiate it?

MLS and being a CASH offer I negotiated it down by $15,000

How did you finance this deal?

CASH

How did you add value to the deal?

Renovated Bathrooms, new furnace.

What was the outcome?

Quality Home that will be headache free as everything has been checked or updated

Lessons learned? Challenges?

Just change the furnace when it's OLD. Prevent fire department breaking in and turning off the gas due to furnace blowing up

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was the agent

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $66,500
Cash invested: $13,000

Property was bought off the MLS for CASH in a B Area. Standouts from the property were large kitchen and open floor plan. Fenced in yard. Previous Seller had new ROOF installed in 2016.
Needed to update Bathrooms, Paint. One Failure I made was not change the Furnace. During the Polar Vortex Cleveland had the Furnace blew up and the fire department broke into the property which was VACANT. Destroyed my front door and such off gas. Had to replace, Furnace, add new GAS Line and new FRONT DOOR. Budget went over $3500.

Tenant pays $950/month. Along with ALL Utilities. I just take care of Insurance and Property Taxes.

What made you interested in investing in this type of deal?

Area has a big push and the fact it had been on the market for 100 plus days

How did you find this deal and how did you negotiate it?

MLS and being a CASH offer I negotiated it down by $15,000

How did you finance this deal?

CASH

How did you add value to the deal?

Renovated Bathrooms, new furnace.

What was the outcome?

Quality Home that will be headache free as everything has been checked or updated

Lessons learned? Challenges?

Just change the furnace when it's OLD. Prevent fire department breaking in and turning off the gas due to furnace blowing up

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was the agent