All Forum Posts by: Marlon D Nangle

I understand better now. Thank you. 

@Fernando Corona I do not get the feeling that the seller will be interested in this arrangement. My feeling is that they want a number to sell and walk away with no loose ends. 

I will probably end up costing out the work and discounting accordingly for my time and effort. 

Will consider for the future. Thanks again

Hey @Fernando Corona. Based on what you and Bonnie are saying, it sounds like you're both asking if I should explore having some form of ventor-take back financing where the seller holds title and I don't put too much of my own money upfront. I'm guessing this is being proposed so that the seller is more incentivized to put cash into improvements so that they can fully sell and get out. 

From my research, the 2 main variables (removing the tank in basement and adding chain link fence in backyard) can both easily be done within a few days of taking possession. 

I would conservatively estimate cost for these items to be 5k. I'm hoping to negotiate the price down by 15k at least. Before I take the next step I first want to understand the position of the conveneince store next door to see how the shared gate relationship is currently being managed. 

@Bonnie Low, @Fernando Corona, thank you both for taking the time to respond. This is potentially my first venture into MTR. I like the location because the house is zoned commercial, close to a major hospital and there is a big green space park behind the property. 

The area does have noticeable social issues (nothing violent) so I will be investing in a good security system up front for guest peace-of-mind. 

Trying to target bue-collar temp workers, relocating families and/or couples with pets, medical students and people who will need hospital care for 1+ months.  

Although this rental may initially start off with STR bookings, I am purposely trying to position this house to be exclusively MTR for the long-term, and move away from STR altogether.

I know I've said a mouthful in a few directions, but any thoughts or insights about getting into the MTR niche and catering to my proposed clientelle would be greatly apprecaited. 

Thanks again

Hi @Bonnie Low. Thanks for the reply. 

Yes, by vendor I do mean the seller. When you ask if the seller is willing to carry the note, do you mean are they willing to maintain ownership and do some sort of seller financing deal?

From the sounds of it, the seller is not willing to put any cash into improvements out-of-pocket.

Hey folks,

In preliminary talks on a small 3 bed 1 bath house near a hospital. House built mid 50s. Has good potential for MTR and LTR as back up. 

Vendors are a senior couple. House has been updated on main floor and is move-in ready. Unfinished full basement. Vendors use to own the lot next door that currently has a convenience store. 

Variables to consider:

-big oil tank still in basement. Tank is empty but still needs to be removed with permits, and related environmental inspections

-the house and convenience store next door each have clean separate titles, but they have no separation fencing in the backyard and both lots share the same open/close gate.

Vendors say they don't want to go through any hassles to address these items and would rather negotiate on price. 

The house has been sitting for a while and the owner has already dropped 40k from when they had it listed last year. 

They clearly want to sell and I'm willing to do the heavy lifting to address items for appropriate price discount and favourable terms. 

On that note and based on the info provided, just curious how others would approach negotiations with this case?

Apart from costs, what other factors should I be considering for this potential deal?

So far in my limited investing experience, Property Management would be top of mind. However, I had entered an unfamiliar market (Winnipeg, MB) and had limited contacts outside of my agent. I first chose a property management company based on google reviews, and who appeared to be the most professional with biggest footprint in the region. Very salesy upfront, and poor customer service once I was signed up. 

To me this was a learning experience. I was eventually put in contact with a smaller local guy who is an active investor too. We were both on the same page and at similar stages in our investment journey. I think the lesson being that there's no 'one size fits all' property manager, and it really comes down to an alignment between the parties and their objectives. This also means, the property management relationship will change over time, especially as your needs evolve. Just my 2 cents. 

Although annoying, I enjoy the learning journey because I learn more about myself as an investor in these situations. 

However, I think universally, contractors will ALWAYS be the hardest team member to secure. For me, you only need to learn a hard lesson (get burned) once. If you have to learn it more than once with the same party, then you yourself might actually be the risky member of your team. 

Wow! This is all great information. 

Thanks for your insights @Andrew Duna. Very much appreciated. SFHs are what I have so far, so there's a level of comfort there. I very much want to expand to multis, for the Cleveland area I could see B-class multis as being pricey, especially in the neighbourhoods you've referenced. 

When I visited the area last, I stayed in Parma and was pleasantly surprised with the area and what it had to offer. 

I will also be contacting @Muhammad Amawi as you've suggested to see what options are available. Again, thank you!

@Shane Kelly, appreciate your comments. Could you further qualify your take on small multis vs SFHs in the current market? What factors do you believe will lead to a turn around where multis will make more sense again?

Hello Folks, 

New to the forum. In short, I am a Canadian investor and currently own 2 SFHs in Winnipeg, Manitoba. 

I am now interested to expand my portfolio to Cleveland, Ohio. Visited the city in spring and became intrigued. 

Through research, I estimate that a SFH in Cleveland proper will go for 650-800/monthly, whereas in the surrounding suburbs rents can be in the 1000-1200 range. Would appreciate some added context to this? For example, which areas to target, and more importantly the current voice of the rental market. What's most important to renters??

For now, I would like to stick with 3 bedroom SFHs, but hoping to expand to duplexes and triplexes once I gain some traction. 

As a Canadian investor, would also appreciate if someone could direct me towards a lender (bank, private, etc) who has experience working with Canadians in getting American financing. 

Thanks