All Forum Posts by: Patrick Drury

@Allen McCann
When looking to invest in the Cleveland 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.

@Maria Jeanette
I would recommend trying to narrow down your search to a state and then 1 market. If you are looking in 3 states and multiple markets in each state it's like drinking from a fire hose on trying to learn those markets. It's too much info and just overwhelms investors. 

@James Wang
There are a lot of different kinds of asset classes. I would do some research and find one that is of interest to you and go all in on it. I would interview a lot of brokerages and find one that works. Keep in mind the brokerage that just offers low desk fees and a nice office doesn't have a direct correlation to the training you will receive and value you will get for the cap you are paying.


A few additional thoughts about being a new agent ---
Being a real estate agent is unique because it's solely commission-based. So it really comes down to who is willing to get out of their comfort zone and come into the office every day and hit the phones to find deals. Just keep in mind your credentials will not impact your success, unlike other jobs. Sales is very different than corporate jobs you only get paid if the deal closes.

@Vishal M.
Where is your property located at in Columbus? 

@Markus Samuel
I didn't see it in your post. Do you know what the ARV is? If you are doing a value-add deal this is something you want to keep top of mind. In terms of is it a good deal that is completely subjective. It depends on what you are looking for from the investment and what your expectations are which I didn't see above. To a buyer looking for a turnkey deal, a BRRRR isn't a good deal, and to a flipper, a turnkey deal isn't a good deal either. It's not that there is anything wrong with BRRRR or turkey deals it's that they don't fit that particular buyer's criteria and expectations for the investment

@Jinglei Shen
The insurance of $1,400 a year seems pretty high in my opinion. I would get some more insurance quotes. Usually, when I buy a duplex around that price range in Cleveland it's closer to $500 a unit annually or $1,000 a year. I would check with an insurance agent for an actual quote

@Gavin Wynn
I would get the gas sub-metered so you can bill the tenant based on usage. Typically the gas and electrical are sub-metered unless it's not zoned correctly. It will cost you money in the short term to sub-meter the gas, but over the long term it will be worth it in my opinion. In Cleveland, it's more common to see the water not sub-metered. Some people charge flat amounts for the water like $25 a month per person. If you can sub-meter the water that is always preferred it just depends on how feasible it is to do that. 

@Francisco Pineiro
You could call a few home inspectors in the market you are investing in and see if they do draw inspections so you know the items are correctly done before sending funds

@Tanya Maslach
There is a bunch of forums already discussing whether to us an LLC or not to buy a property. As someone who lives in Columbus and invests here locally, I would just buy it in your name. The cons outweigh the pros of getting an LLC for 1 single family. You'll just be paying for a higher interest rate which will hurt your numbers and cash flow and you'll be paying more to maintain the LLC.


In terms of Costs associated with an LLC
-Roughly like $100 to file with the secretary of state in Ohio if you wanted to do it yourself
-Cost for your accountant to prep a tax return at the end of the year for that LLC (depends on your accountant)
-Cost of a higher interest rate with a DSCR loan
-Maybe more advanced, but if you have more rentals the cost of additional bookkeeping software like having to pay for additional quick books accounts. In my case, thats is like $99 a month for quick books plus. 

@Jennifer Stammberger
I wouldn't hire out for the cold calling I would do it yourself. Become really good at it and refine the skill. Most of the deals I do are off-market and they are sourced from cold calling. It's also how I find deals to buy as an investor as well. It takes a lot of practice and sucks in the beginning, but if you stick with it long enough and keep improving it will be worth it