All Forum Posts by: Patsy Waldron

 I'd be happy to point out deals to you that I can't pursue.

I agree that taxes are a killer in the suburbs. That's usually what sinks a deal for me, too. But there are still a few that work despite the taxes. And remember that you can always appeal the taxes if they are high and you buy for lower than the appraised value. I am getting ready to file an appeal on my latest property.

@Christopher Blanco

I invest in the same areas that you mention above, and have MLS listings coming to my inbox every morning. I see good deals on buy and holds quite often (flips not so much)- and that is on the MLS! I have been chafing all winter long because I would see good deals come up, but I was in the middle of a rehab and didn't have the cash to buy. I am hoping that prices don't go up once spring arrives....

$100 per door doesn't seem too stringent- what numbers are you using for vacancy, repairs, and capex? Maybe that's what's killing your deals.

Nothing to be done about other people offering more than you, other than go on to the next deal. :) The nice thing about Cleveland is.... There is always another deal around the corner!

I would stay away from 44112. There are some better areas in the zip code (the ones that border on Cleveland Heights and South Euclid) but you would definitely have to be VERY familiar with the area to know whether this property is in the better part of the city of East Cleveland. The price makes me think that it probably isn't, and the projected rents are likely very optimistic (at least on a consistent basis).

I got an e-mail about this just today from my insurance company! I am pasting a part of their blurb about why an insurance policy may not cover burst pipes (it boils down to having the most bare-bones form of coverage, instead of a more comprehensive policy):

In the past few weeks we have seen a number of losses reported that prior experience tells us will eventually be denied by carriers. We've seen single losses totaling more than $30,000 and what's tough to swallow is that many of these losses were avoidable.

What's happening & what's the danger?

• Property owners or their tenants are failing to maintain heat in the property. An ensuing water loss caused by frozen pipes may be denied by the carrier if the heat was not maintained, whether occupied or vacant
• Investors are bearing the full weight of a water loss because they have Basic Form coverage and did not protect their property against water damage. Water Damage is excluded under the Basic Form.
• If a vacant property is neglected by a property owner or manager, substantial mold growth may already be present by the time a water issue is discovered. Mold is a standard exclusion in the majority of insurance policies.

 I agree that work should be permitted and performed by licensed tradespeople. This was really just an initial estimate of what work needed to be done to get one unit market-ready and how much it would cost. Now add in the time to get any permits.... This unit could be vacant for four months!

I am letting the broker know exactly why I am switching from his company. There is nothing in the PM contact about communication or specifically about timeliness of communication/work to be done. 

@Phil Earley- Yes, I know that lots of things slow down around the holidays..... But I closed on Dec. 1st!! And THEY were the ones who told me to expect the estimate within a week.

I know all about contractors taking time off for their priorities... My electrician flat out told me he couldn't start working on my project because he was going hunting the week of Thanksgiving and the first week of December. My cabinet and flooring guy at the same house was supposed to have most of the work done in December, but took off to Arizona for Christmas and didn't even get started until January!

I have learned to add one month to any timeline any contractor gives me... But I would think a professional property manager should be different.

@Peter Tverdov

Good question. Stupid mistake!

@Mike Warder- Thanks for sharing your experience! If I'm lucky maybe they'll let me go immediately too. I completely agree that I should (and do) hold my team to high standards- and that includes their doing their work as and when they say they will, without my having to hound them!

Thank you all for your feedback!

@William Walker You are right. I weighed contacting the head broker and letting him know that I am less than happy with the service I have obtained so far.... But I have lost trust in the company and, as you say, my gut is telling me that we are not a good fit for one another. 

@Mike Dymski $ @Robert Gilstrap- I followed up once a week to find out where they were at and when I could expect the estimate. I also communicated with the PM about other things (filling the vacancy, another tenant's security deposit, and other matters). Frankly, I don't think I should be hand-holding or micromanaging. THEY are supposed to be the professionals at this, right? Personally, I prefer to work with people who are professional enough that, once we have discussed what is to be done, how and when, they are autonomous enough to do it without my having to follow up constantly, and courteous enough that, if there is a delay, they let me know that they cannot meet the original deadline and provide another delivery date. Are these unreasonable expectations?

@David D Painter

Completely agree! That's what I am thinking too. If they can't get a repair estimate in within a reasonable time period, who knows what else will happen! I want to cut my losses early by switching PM.

RE: Fees- They charge a flat $75 fee per door- which may be great for those who are pulling in $1,000+ from their rental, but for my $500-a-month one-bedroom apartments, that's 15%! My fault for not looking more closely into what the flat fee translated into as a percentage.

@William Walker

It actually won't cost me anything (well... except lost rent), as they are apparently so confident in the quality of their service that they offer a "Love us or leave us" policy, which is that you can cancel at any time during the contract with a 60-day notice of intent to cancel. Guess I'll be sending that notice tomorrow!

I am livid because they seemed so on top of things before I signed with them. Great at follow-up, communication, and general customer service. Then, as soon as I handed over the keys, they started slacking off... I have read so often here on BP that your property management can make or break your investment, and I don't intend to let this company turn a great investment into a money-loser!