All Forum Posts by: John Koster

@Chad Weston I agree with @Dave Stokley 's advice.  Another thing to know about the Cleveland market is that tax rates vary widely throughout the county.   They range from 2 to 4.5% of assessed value and reset every 3 years.  For example, the city of Cleveland is around 2.87% and Cleveland Heights is 4.03 %.  

We might be having another meetup for LA investors interested in Cleveland soon.  Let me know if you are interested.   

Hi, @Evan Cook.  I can also take a look for you.  I have been investing in Cleveland since 2013.  Grew up in Cleveland.  Live in California.

@Alex Ko Not sure why your agent is hesitant to make an offer.  Probate sales are a little different, but not that complicated.  

From what I understand, the primary difference is that all offers are subject to court confirmation and are accepted or denied by a personal representative.   Just like regular sales, the offers are usually presented initially to a listing agent.  Offers must be 90% of appraised value, with the date of appraisal being within one year of the confirmation hearing.  Contingent offers are allowed but all contingencies must be removed before presenting to the court for confirmation.

If full authority of the Independent Administration of estates Act is granted by the court, no overbids are allowed.  If limited or no authority is granted, then overbids are are allowed but must be 10% of the first $10,000 of the original bid + at least 5% of the of the initial bid amount over $10,000.  

Good luck!

RE taxes in Ohio are based on the municipality, not the state.   Cleveland Heights has a different rate than Lakewood, which is different from Parma, which is different from Cleveland proper etc,... Recently Cleveland Heights has been in the 3.6-3.8% of value range.

@Robin Hines. Thanks for the post!  I almost lent to him in January.  After agreeing to lend on a property, he never responded back to me.  Dumb luck I guess.

Pay the bills yourself.  That way you don't have to worry about getting stuck with a huge bill down the line and you get high $$ clues whenever there is a leak in the system.   

I pay Water & Sewer bills monthly.   The previous owner of your places must have arranged a quarterly payment?

Properties without garages are fairly common in Cleveland.  The price and marketability of a property without a garage are of course affected, but it is not deal breaker.  I have avoided properties without a garage, but I know a few investors who could care less as long as the numbers work.   A local realtor would have a good idea of how much rent is affected.

From my experience, your analysis is pretty accurate.   Taxes seem on par with Cleveland proper.   Most suburbs would have higher taxes though.   Cleveland is at 2.87%, while the Suburbs tax rate can be was high as 4.2%

Rentometer.  Go with the medium price within a .5 mile radius for the last 12 months.

Definitely.  I know a few people who might be interested in that service.  DM me and I'll pass your info on whenever I can.