All Forum Posts by: Joshua Janus

People always need a place to live right? As long as that is the case, it will go up in value over time as the population growth is generally faster than the new and newly restored building rate. 

C-D class neighborhoods in Cleveland is a great place for cash flow. If you want to invest in these areas, make sure to mitigate your risk as much as possible through in depth screening, a good property manager and more. Just focusing on cash flow can put yourself behind the ball if you aren't careful. 

Do you have enough cash to cover 20% of the purchase price, closing costs and 6 months of reserves? I agree with AJ that the cash flow is a little low and there will be a better deal than this one. What has the trend been for rent rates in the area? This will provide you more info on the future but you should still invest on a worst case analysis that way you win in any weather. 

The One Percent Rule is a great rule of thumb but it is relative and certain areas will almost always hit it, and others will rarely achieve it. Seems like you could find a better deal and this one should be passed on based on your numbers. Are there any multi family properties in that college town?

Are you in an area that would produce a successful airbnb? If so, the 1 bedroom units would be great for that as you can generally always fill them up and avoid the party tenants. 

I would consider checking out Columbus, Ohio which is a top five appreciating city in the USA. It is a great hybrid mix of cash flow and appreciation. If monthly cash flow is your priority, then I would lean more into Cleveland, Ohio where you could pay cash for a multi family at that price range. 

I would read the books related to multi family investing by Brandon Turner. Have you found any multi family investors in your area? You can skip trace and cold call neighborhoods to find owners. 

I would definitely house hack in a 2-4 unit! That way the cash flow will pay your mortgage, and you'll get the 4 big benefits of real estate investing: cash flow, appreciation, tax advantages and loan paydown. Putting all of your money in 1 unit isn't diversified and doesn't provide you an opportunity to mitigate risk. 

@Kyle Tom might be able to help. 

@Shaheen Seiffert What areas of Cleveland have you looked into so far? That would be a more favorable cash flowing area as opposed to Columbus which would favor appreciation more in general.