All Forum Posts by: Luka Jozic

This is a long shot, but I gotta try. I just purchased a SFH in Cleveland. The bathroom has some unfinished tile and the seller claims they don't have any left over but that I should be able to find the same at Lowes. I have looked and cannot find it. I was wondering if there are any experienced rehabbers here that maybe happen to recognize this tile or can at least give me some pointers that can narrow my search? The one Im looking for is the smaller tiles on the left in the image.

Thanks everyone for great replies. It seems like we are all in agreement that I am better of going for LTR for this particular property. If you know any areas where MTR for nurses would be great, please feel free to drop them below.

Quote from @Joe Aiola:

@Samarth Patel Hey man! After reading this thread, I think listening to episode 399 of the BiggerPockets Podcast might be useful for you. The entire episode is good, but there's one part that talks specifically about having contractor's come to bid on jobs before the property is under contract.

Hope this helps and happy holidays!

 Where/how do I actually find specific episodes?

Hello everyone, I just closed on a single family house which I have linked below. My initial idea was to rent it as an LTR but then realized that there are a lot of big hospitals in Cleveland and there seems to be a traveling nurse niche. I have been reading the few existing threads about this on the forum but couldn't really find anything concrete. My question is simple, is there a high demand for traveling nurses in Cleveland (specifically Garfield Heights) and do you think that my particular property would do well for it? I would appreciate answers that go beyond "it depends". :)

https://www.zillow.com/homedet...

Quote from @Ricardo Hidalgo:

Quote from @Luka Jozic:

Quote from @Ricardo Hidalgo:

Quote from @Luka Jozic:

Hello everyone, 

STR has peaked my interest and I am doing some research on it. I have searched the forum but was unable to find an answer. In general for STR, is it better to do SFH or MFH? I would assume SFH for the reason that guests would prefer more privacy and to avoid disturbance between guests? What do you guys think?

STR should yield 20-30% more in profits than an LTR could when comparing which way to go or analyzing a property. Long term are more stable with rents and STR is seen a s business with adjusting rates, constant repairs and trying to market your property above the rest to become a super host.

Here is what I was thinking, feel free to poke holes in my plan. I am looking to find a location using AirDna and other research tools that could support both STR and LTR. I will look for foreclosures or otherwise distressed properties to get a below market value price and fix it up. Whether I refinance depends on how much money is put into the property but I've seen plenty foreclosured that look in pretty good shape with minimal work needed. One important thing is that the numbers need to work for LTR as well, not necessarily from a cash flow perspective but at a minimum to cover costs. The reason for that is once I start STR, if something goes to ****, for example another pandemic, STR restrictions by the city/state, or simply I am not able to gain enough traction for whatever reason, I can turn it into a LTR and wait it out or worst case sell it. Since I am hopefully getting it below market value I should at the very least get my money back. That way I feel like I am able to minimize the risk as much as possible. Let me know what you guys think. 

 What is your preferred price point? cash on cash return? Are you looking for a set number on net profits for the flips or just percentage? 

I need to look more but I have found a couple areas where there are foreclosures in pretty good shape under $200K for 3-4bd. The market rents seem to cover all expenses if used as LTR and according to AirDna they can have an NOI of about $40-55K a year. That to me sounds VERY nice 😉

Quote from @Ricardo Hidalgo:

Quote from @Luka Jozic:

Hello everyone, 

STR has peaked my interest and I am doing some research on it. I have searched the forum but was unable to find an answer. In general for STR, is it better to do SFH or MFH? I would assume SFH for the reason that guests would prefer more privacy and to avoid disturbance between guests? What do you guys think?

STR should yield 20-30% more in profits than an LTR could when comparing which way to go or analyzing a property. Long term are more stable with rents and STR is seen a s business with adjusting rates, constant repairs and trying to market your property above the rest to become a super host.

Here is what I was thinking, feel free to poke holes in my plan. I am looking to find a location using AirDna and other research tools that could support both STR and LTR. I will look for foreclosures or otherwise distressed properties to get a below market value price and fix it up. Whether I refinance depends on how much money is put into the property but I've seen plenty foreclosured that look in pretty good shape with minimal work needed. One important thing is that the numbers need to work for LTR as well, not necessarily from a cash flow perspective but at a minimum to cover costs. The reason for that is once I start STR, if something goes to ****, for example another pandemic, STR restrictions by the city/state, or simply I am not able to gain enough traction for whatever reason, I can turn it into a LTR and wait it out or worst case sell it. Since I am hopefully getting it below market value I should at the very least get my money back. That way I feel like I am able to minimize the risk as much as possible. Let me know what you guys think. 

Quote from @Mark Welch:

Please clarify multifamily? Are you referencing 2-4 units or 5+units?

 Im thinking mainly 2-4

Hello everyone, 

STR has peaked my interest and I am doing some research on it. I have searched the forum but was unable to find an answer. In general for STR, is it better to do SFH or MFH? I would assume SFH for the reason that guests would prefer more privacy and to avoid disturbance between guests? What do you guys think?

Quote from @Taylor Dasch:

Great Goals. Sounds like we have a similar path. I think the way you are going is best way to get into Real Estate with the least amount of risk. I am not sure if you have read think and grow rich but it recommends to have a clear / definite goal. So instead of buy as many properties as I can, I would put buy 10 properties in the next two years that cash flow $500 each.  You obviously would have to have a decent understanding of your market. Then look at them / say them out loud every day and track your progress weekly.  - wow that was a big side note about goals lol. 

As far as your actual question.

1.I love the idea of starting in that lower price range because you get experience and are able to build your team, and get more familiar with the market. 

2. Scaling up to a duplex / quadplex is a great idea.

3. I would do this on every property. But be careful about refinancing too much and not being able to cash flow well on the property.

4. Obviously capital could be an issue, there are many ways to hold everything you get, but it can definitely be a pain and you have to have really good deals at all times. What I would do / am doing, is starting with 4 Buy and Holds, then when those rehabs have been completed (I have 2 going on right now) I will begin looking for flips to build capital and fund another purchase. 

This way you arent turning down too many deals just because they dont work as a buy and hold as well. 

 Yes definitely however $500 a month cash flow is very difficult to find unless its in a ****** neighborhood or in bad condition. Definitely not impossible though. I am definitely not ready nor comfortable with complete rehabs, but Im thinking maybe going for properties that just needs basic work, that way its not too overwhelming and though I may not be able to get all my money back, if I can get the rehab costs back that would be pretty ok in my opinion. 

My concern with 3-4+ units is that it seems like there are a lot of people experiencing lots of headaches with that and are basically drowning in repair/turnover costs. 

Quote from @John Underwood:

Arbitrage is not a good business model and is generally discouraged.

 I'd like to understand why that is. Do you have a link to some of those older links that you have mentioned?