All Forum Posts by: Michael Lewis

Yes I agree. This particular deal has a very low purch price. Return is over 20% with 6% vacancy accounted for and 5% maintenance cost along with pm fee’s.  CF around 230/month  Looks good until you take into account probable turnover due to the area and mandatory city inspections. As an out of state investor I’ve got to be careful. My gut tells me this one is attractive and the buy in is low but behind the scenes may not be so pretty. I’d trade a 20% return for a 10% return for a better quality area and tenant, less turnover and city interference. I feel Euclid is a good middle ground. 

Originally posted by @Jad Boudiab:

@Michael Lewis Maple Heights is solid for single family investments, of which there are plenty.

In single family homes, your tenant should be staying for 2 years plus, unless you / your PM aren't doing a great job with placement and management of the unit.

2-3k solely for city items might be high, up to $1,500 seems more appropriate on a property in fair condition.

With all that said, I still prefer my westside properties where city is rarely ever involved.

Hey Jad, so when you take into account 1-2 month vacancy and the cost of making rent ready(paint, lights, floors) and violations it would be around 2-3k right? If the tenant doesn’t stay for at least 2 years I’m in the red. 

Originally posted by @James Wise:

Originally posted by @Michael Lewis:

Hello BP community. Are there any veteran investors in the Cleveland OH area? I now own 3 properties in various parts of the Cleveland suburbs. All have been purchased in the last 12 months. My question is in regards to city inspections. Depending on the city, inspections are required either every other year or with very new tenant. Should I expect that with every inspection there will be violations that need to be addressed? If so, with rehabbed properties what can I expect the costs to be? I have a property in Cleveland Heights, Euclid and Maple Heights. Your input is greatly appreciated. I’m looking to put an offer in on another property in Maple Heights but I’m not a fan of their stricter city inspections with each new tenant. I welcome any experienced input.

 Yes, more or less they will cite you for something every time they show up. The costs will vary based on the condition of your property. If you maintain your properties in good working order the violations will be minimal but again they always find something.

James, what are your thoughts on Maple Heights? I’m looking to purchase another property there but have become more apprehensive as I’m learning more and more about the area. From what I’ve gathered they have strict inspections that occur with every new tenant and Maple Heights generally has higher turnover. So if for example we figure a move out and inspection every year. Is it safe to say with the lost rent and cost to make rent ready with potential violations I may be looking at 2-3k per year? If so this essentially eats the majority of the returns of the property rendering it a poor investment. Is my thinking accurate or am I missing something?

Hello BP community. Are there any veteran investors in the Cleveland OH area? I now own 3 properties in various parts of the Cleveland suburbs. All have been purchased in the last 12 months. My question is in regards to city inspections. Depending on the city, inspections are required either every other year or with very new tenant. Should I expect that with every inspection there will be violations that need to be addressed? If so, with rehabbed properties what can I expect the costs to be? I have a property in Cleveland Heights, Euclid and Maple Heights. Your input is greatly appreciated. I’m looking to put an offer in on another property in Maple Heights but I’m not a fan of their stricter city inspections with each new tenant. I welcome any experienced input.

The management company is saying it’s the season. It’s in Maple Heights. 1300 ft. 4 br 1 ba. Originally asking $1,000. Now it’s listed for $925. Only a few blocks away from the new Amazon fulfillment center. 

Can any investors in OH shed some light on his for me. I have 1 rental in Cleveland leased and another one just finished rehab in October and my management company still hasn’t found a tenant. Is it more than likely because of the time of year? Seeing as how the weather isn’t great people may not be so inclined to want to move? I’d greatly appreciate your input.

Originally posted by @Caleb Heimsoth:

@Michael Lewis. I’ve had this happen before, usually it’s not a big deal but it depends on the tenant and the company. Can you list actual numbers or an area of Cleveland it’s in? I think those matter more then just a tenant getting a NSF.

 Caleb this property is in Cleveland Heights. 

I genuinely appreciate everyone’s input. This is exactly what I hoped to hear. I am accustomed to dealing with a single property manager with my other out of state properties so I am certainly used to the “working with” approach. 

Hoping for some advice. I recently purchased a property in Cleveland from a Turnkey company. I have another property in escrow also in Cleveland with he same TK company however recent events have made me apprehensive as to whether I'd like to move forward or pull out of escrow. Here's why. This is month 4 and apparently my tenants check came back NSF. However I was never notified of this when it happened. Instead when I recieved my Owner Statement on Nov 15th it clearly stated NSF and no funds have been deposited. I had to reach out the PM(by email of course because reaching a live person is IMPOSSIBLE) I was told that apparently the tenant had an issue with their bank and would come in that evening with a money order(which they never did). Ok here's my gripe. #1) When was my PM company going to notify me that a payment wasn't made? #2 Why haven't they started the eviction process? #3 I signed a 6 month rent guarantee with this TK/PM company and when I made mention of this they said yes you're right if no rent is paid by end of month we will definitely pay you full rent(Why wouldn't they make me whole on the 15th and try and collect from the tenant to reimburse themselves?) I am keeping their name out of this as a courtesy to not tarnish their seemingly good reputation. Is this the behavior I should expect from a solid PM company? If so, I cant say that I'm satisfied and I'm about 80% sure I'll pull the plug on my second Cleveland property that is expected to close in a week as I just don't feel comfortable. I live in CA and need eyes and ears I can trust managing my property(s). Any advise is GREATLY appreciated.

I wanted to add to this thread. Hoping for some advice. I recently purchased a property in Cleveland from a Turnkey company. I have another property in escrow also in Cleveland with he same TK company however recent events have made me apprehensive as to whether I'd like to move forward or pull out of escrow. Here's why. This is month 4 and apparently my tenants check came back NSF. However I was never notified of this when it happened. Instead when I recieved my Owner Statement on Nov 15th it clearly stated NSF and no funds have been deposited. I had to reach out the PM(by email of course because reaching a live person is IMPOSSIBLE) I was told that apparently the tenant had an issue with their bank and would come in that evening with a money order(which they never did). Ok here's my gripe. #1) When was my PM company going to notify me that a payment wasn't made? #2 Why haven't they started the eviction process? #3 I signed a 6 month rent guarantee with this TK/PM company and when I made mention of this they  said yes you're right if no rent is paid by end of month we will definitely pay you full rent(Why wouldn't they make me whole on the 15th and try and collect from the tenant to reimburse themselves?) I am keeping their name out of this as a courtesy to not tarnish their seemingly good reputation. Is this the behavior I should expect from a solid PM company? If so, I cant say that I'm satisfied and I'm about 80% sure I'll pull the plug on my second Cleveland property that is expected to close in a week as I just don't feel comfortable. I live in CA and need eyes and ears I can trust managing my property(s). Any advise is GREATLY appreciated.