All Forum Posts by: Nicolas Looman

I can't believe no one answered you here. Tremont is extremely desirable and vacancy is low. You will find lower cap here with a more stable appreciation. Higher caps are often associated with big cash flow but it is also a measurement of volatility. No headache tenants, premium rents, less problems with appreciation. Not a bad wrap. The real issue is finding a property that has cash flow sense or a cash enough to invest and see that immediate cash flow.

I think you'll be in luck with a 6-7% any more and you're leaving money on the table for your clients or yourself (idk if you're an agent or own it or whatever). Run the numbers and keep upping that price where the average investor can at least see a net zero with property management riding on it. (about 10% and in Tremont some will do 8 or 7%). Identify your buyer and what a reasonable buyer is capable of and the rest will work itself.

A seasoned investor will know the appreciation over time with a no headache property is worth it. I see a ton of listings that have unworkable price numbers and that's why they sit on the market for a billion days. They're almost looking for someone to cash buy to see some sort of return. That is certainly a smaller pool and in smaller pools you catch smaller fish. 

Hope this helps!

Those all work! 

I like to set people up into a max of 3 market categories. I spend a half hour looking at the new listings in my market area and sort the ones I think my client's would most like or work for their strategy of investment. This holds you to staying up to date on your market while actually showing them opportunity and value! If each client gets the 6 top hot picks in a week they really value it as apposed to searching through 300 active listings in a market they don't quite understand.

Everyone is different though!

@Kevin L Owens I would just start with a couple of calculators in investing strategies that you find interesting. Go online for an active property and pretend you're buying it! What does your cap look like? what do premium market rents look like? Is this by a hospital? Could you do short term rental for traveling nurses. The best thing about investing is that you have the freedom to know that you are the boss and there aren't any set paths you are forced to take to find your success. Everyone's journey is different and that is what makes the investment world so great.

Welcome to the hole you got sucked into. It's amazing and scary at the same time. Congrats!

@Maxwell Endres is absolutely right! Get involved with a private social media network. 

Understanding your targeted market sets the expectation for so many things when exploring into all types of investment strategy.

Asking questions like what is the COC on that property? Where is it located? Do you have tenancy issues? Where would be the best place for B to C neighborhoods. They have already walked that floor are are inherently impartial.

If you are considering Cleveland I would love to talk to you about the market from a sales perspective. If you have any questions feel free to reach out.

Congratulations and good luck!

I think that there are a ton of suggestions pointing into the right direction. What is the expectation set from your PM in how is the property being marketed to get that vacancy take care of? Is the PM still collecting even though it is vacant? 

Firing your PM is not necessarily the right move there may be more to this and pointing the finger at the manager isn't exactly productive. 

You need to analyze if this property will continue to be a sound investment in the future. Would getting certified for section 8 be the route in solving the vacancy? Look at your neighborhood market and see that is the person who will rent from you. Is the median income 30k a year or 130k a year. You stated it may be in a c to d neighborhood so perhaps a reduction may be the route to cut your losses.

Someone mentioned incentivizing the tenant. Maybe cover the first month of rent if they show zero eviction history and good credit.

There are a hundred ways to go about this finding your level of comfortability is your first step.

Welcome to Cleveland!  I have a contact for you if it is on the west side. A lot of issues with contractors stem form that the good ones are busy! If you ever have questions or would like to talk market shop let me know! 

Like everyone else said. Akron is a place to get cashflow and not particularly large appreciation gains. There is a lot of beautification and infrastructure projects that the city is constantly putting into place to encourage newcomers to give the rubber city a shot. 

Comparing the Cleveland market to Akron has two main things to focus on. Taxes are much cheaper in Akron comparatively when looking at a C or B neighborhood in either giving you more slack in getting those caps a bit higher. Second, it is just an underappreciated investing market. OOS investors don't think to look there because they just simply do not know. The market is much cooler there allowing you more room to push negotiations and avoid multiple offers.

I currently have 2 under contract in 44310 and will be at 11% cap on one and 10% cap in the other while setting aside 20% for pm, maintenance and vacancy. Overall not bad at all.

Rule of thumb is that if this is a non occupied investment property the seller will only be able to contribute 2% off of the loan amount. I have had a ton of luck with seller concession in this area and it is totally achievable. 

Most sellers would rather give you a credit or price reduction before placing money in escrow for repairs. In Ohio you have to escrow 1.5 times the amount of the quoted repair cost with a timeline set in place to execute said repair. This ties up the sellers money and most of the time would prefer the previous mentioned routes.

When in doubt run your numbers and show the seller! People are not unreasonable and you don't work for free. You need to see cashflow and if this is the way to achieve it then they would relatively understand.

Good Luck!

I am a realtor in Ohio and my wife is originally from Alabama which makes me oddly qualified to know what these markets look like(we go to Tuscaloosa too often) . They are extremely similar! 

Tusc is a great place undergoing a ton development while being extremely affordable for the OOS investor to hop into. A single family home is nearly identical in price point into the Ohio market as well!

My recommendation would be to contact a realtor in both markets and run some number comparisons on some short lists they can provide you. Location and amenity is important do you see the market you are choosing is going to grow in the future.