All Forum Posts by: Ondrej Brown

@Greg Gangle

If you get enough cash flow to pay your current mortgage, I'd say that you already have your house paid off.  Or even if you could tap into the equity of your current home and investment properties to make that happen with more investment properties.  It's hard to know exactly without seeing specific loan terms, rent rates, etc. but you can consider this a vote against!

Good luck and Happy New Year!

Originally posted by @Ondrej Brown:

Actually, there is already a Section 8 tenant in the property and the net profitability is quite good. 

What woories me most is (i) the fact that te property could have a high vacancy rate and (ii) the fact that the house could suffer acts of vandalism. However, when I look this area on google.maps, the houses look pretty good. It is quite confusing. What do you think about that?

Thank you again for your big help!

Good morning,

I am planning to buy a property to rent in Buckeye Shaker.

I know it is a quarter with quite a lot of criminality. However, I have also heard that it really depends on the specific area the property is located. It also looks like the quarter has good economic development plans to revitalize the local economy. 

To be specific, I am planing to buy in 3205E 132nd ST, CLEVELAND, OH 44120. I do not have the impression that the area is that bad on google maps. However, it is really hard to evaluate when you don't know the place.

If you really know the area, could you please give me your advice?

I really appreciate you help.

Have a good day.

Rafael Platas

@Ondrej Brown hello my friend! There aren't many sellers raising their hands to finance their sales, that's for sure. The market is super hot. However, you can sometimes find a special circumstance with a house that is not selling for some reason or with an investor who is unloading a portfolio and has some flexibility in terms of how much cash he or she needs up front. But this also depends on what kind of down payment you are prepared to make. I actually do know of a few houses that meet the later criteria. Happy to discuss.

E

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $41,000
Cash invested: $89,000

This property was a BRRRR deal, completed during the midst of the COVID-19 pandemic. Renovations took twice as long as expected, but was able to stay on budget by using a great handyman and doing alot of work myself. Spent 2-3 nights per week at the property and a full weekend day for the better part of eight months, but it was all worth it.

What made you interested in investing in this type of deal?

Wanted to do a BRRRR as my first deal to recycle seed capital and keep momentum. House was owned by same family since 1920.

How did you find this deal and how did you negotiate it?

MLS. Was on market for 2 weeks in very hot market. l I presented a cash offer 20% lower than list right before Christmas, and settled slightly above my offer. Wrote a personal note to the family, explaining my plans for the home. Love house shopping in winter...

How did you finance this deal?

Cash - My Own

How did you add value to the deal?

Full renovation. House was listed as a 4/1. Added a bath to the second floor, as most homes in the area either only have one bath or second bath is below grade.

What was the outcome?

Perfect BRRRR. Refinanced all my investment out and rented for almost $200 more than I ran my numbers at.

Lessons learned? Challenges?

-It is my responsibility to build a process and timeline for my contractor to follow.
-Picking up tons of material from Home Depot is no fun. Have everything delivered in 2-3 drops.
-Should have started sooner.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Mark Deeter of Keller Williams

@Ondrej Brown so I actually started learning electrical plumbing and hvac from my relatives who are licensed in all 3 trades because I always wanted to get into real estate investing just kind of didn’t know where to start so figured if I could make money learning a few trades it’ll get me where I need to be, I specialize in electrical now and I know a lot about plumbing and hvac and have expert relatives who also love to work