All Forum Posts by: Patrick Drury

@Jenn Sequoia Falgout
Network with some agents and find ones that broker a lot of investment real estate, specifically the kind of property you own. More then likely, they can shop it off-market and see if they have a buyer, and give you feedback if no one is interested at the price you are looking for. 

@Samantha Benz
I would wait till you have enough rentals for it to make sense. I would buy a few more and keep scaling. Things to consider, which I didn't see mentioned below, are it costs money to set up an LLC and maintain it.Here are some items to consider


-First set up costs - At least in Ohio it's about $90 or $100 to file, it's not that much if you do it yourself and more if you pay an attorney to do it 

-Book keeping software - Either you will be using QuickBooks or doing it manually. You could use another bookkeeping software but that's what I use, and it's pretty solid. QuickBooks is about $120 a month for the plan I have. It's probably overkill for someone starting out, but it's what I use.

-Loans - When you buy a property in an LLC you cannot get a conventional loan so you'll have to stick to DSCR loans, which will come with a slightly higher rate.

-Tax returns - You'll have to pay your accountant to file another return for this entity each year, which will cost money. This is dependent on what your accountant changes 

@Janice H.
If you are investing out of state, I wouldn't just buy directly off roof stock without an agent in a market you aren't familiar with. I would reach out to some agents and get the lay of the land and find out if there are market-specific things you need to be aware of 

@Matt Burdett
If you plan on using a HELOC I would keep the price range low enough so that you can buy it with the HELOC and use the HELOC to update it. Trying to use the HELOC as a down payment for a loan is difficult because you're paying interest on the down payment plus the rest of the loan. More often than not the numbers don't make as much sense and you are very leveraged, especially for a new investor this probably isn't a good idea

@Kendra Mattson
If you are looking in the Cleveland, Oh market I would recommend being in areas on the West Side of Cleveland like West Blvd, Cudell, Old Brooklyn, Clark Fulton, Edgewater, Jefferson, and Brooklyn Centre. The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.

@Cody Miracle
If you are in the military, I would try to use your VA loan to buy something local

@Sam Sigholz
That wouldn't be feasible with a student rental if managed correctly. You should have zero to no vacancy, meaning you wouldn't be able to use it during the summer because the leases should be 12 months, regardless if the tenant stays there for all 12 months, they will still be responsible for paying it. If you want something that can be used as a second home, I would just opt for the STR strategy in a great location vs student housing. At least as an STR it would be furnished if you wanted to stay there for some period of time during the summer and you can just block it off from guests being able to book it. Not sure how enjoyable a vacant student rental with no furniture would be (assuming you were able to use it)

@Ouattara Kigninma
I would start going to meetups to network with local investors, contractors, lenders, and other vendors that can help you in real estate. I prefer to invest in areas on the West Side of Cleveland like West Blvd, Cudell, Old Brooklyn, Clark Fulton, Edgewater, Jefferson, and Brooklyn Centre. The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection, like the East side, which is really annoying 

@Alev G.
I would probably first look at landlord-tenant laws in that area. Then look at job opportunities and population growth

@Jeff Pavlik
Leasing is a bit slower in the winter months because there is a bunch of snow and ice on the roads. Summer time is more ideal, but I wouldn't hold off on buying because of that. If you have an opportunity in front of you where the numbers work, I would jump on it.