All Forum Posts by: Bob Collett

In Cleveland?

@Shanti Jimenez. I am Property Manager. My son is insured contractor that does Rehabs. I have two realtors on my teams that represent buyers in acquisition of rental properties. 

Let he know if I can help. 

Bob

A1 Building Moving or Mural

It is probably cost prohibitive over such a long distance. I have seen successful moves across the street, or around the corner... guess who pays for disconnecting and reconnecting overhead utility lines along the route.

Find a lot nearby

Bob

Kristopher

The best way to build relationships on bigger pockets is to answer forum questions in your area of expertise, and make a sincere effort to help others. In time, the right people will find you.

Good luck

Bob

@Diana Duncan

Yes, Cmha provides an extensive check list of inspection items,  including items that are automatic fail (example: each window that is designed to open, must be operable, have working window locks, and have screens)

Overall, the inspection itself is not so bad... it’s getting to that point. Unfortunately, they will not pre’inspect. You must first get a tenant. Also, you do not get to know how much the rent will be until you go through the entire process... then at the end they say take it or leave it.

Bob

@Dimitri Metropulos

I am a property manager, so yes, I manage them, but for out of state owners.

@Brian Garlington ... when you go for annual rent increase for S8, do you request a specific percentage... or do you do each property for current rent rate trends in the neighborhood.

@Dimitri Metropulos I have used Section 8 in a small percentage of my properties with good success. For all of the “pros and cons” of Section 8, the horrible response time of the CMHA staff and lead time to get anything done is the main drawback. Words cannot describe the inefficiency of their people and systems starting with trying to get someone to answer the phone.  It is faster to get in the car, drive 30 minutes, take a number and sit for an hour in the waiting room to ask a question... than to call them on the phone.

@James Wise is correct... Cuyahoga County reassesses property values every three years. The new values will include recent sales and improvements. For example if an investor purchased a property for $14,000, then put $26000 worth of improvements in the property, the new valuation should reasonable go up to $40k based upon improvements.  If you neighbor does the same, and then sells the property for for $60k, it it reasonable to assume the new valuation of your similar improved home to now increase to $60k.

Now, every six years the county will do a physical valuation, meaning they visit each house.

As @James Wise stated, this is nothing new.

From January to March 31st, you can file a “complaint” to dispute your valuation... new or old. 

It may take 9 months for yourdispute to be heard. If successful, the lower valuation will be applied retroactively to the time of filing.

Hint: never ask for more than 19% reduction, and don’t skimp on evidence. You will need “proof” of what your property is worth. So when you show up with comps illustrating garbage properties, expect the panel to ask you how you selected your comps, and if you made any improvements.They will ask about your rents.  Why 19%... because ask for more, and a lawyer for the school board May show up to the hearing to fight your request. Ask for a reasonable valuation based upon real data, and have a good story, and you will probably win. (Example: my house is worth less because it has  a creek running through the basement... I have unresolved housing code violations... I need a new roof, etc. The beautiful house around the corner sold last month for $10,000 less than what my property is valued at.)

Once I threw up my arms and said, “if you think this house is worth $900k, then buy it from me”...  my valuation was lowered by about $120k.

The reality, however is that property values took huge losses here during the financial crisis, and many  out of state investors bought property based on low tax valuations. Now with the market back, valuations have increased. Taxes will go up.

Garfield Hts has the highest tax rate in the State of Ohio. Many east side inner ring suburbs are also well above average. Cleveland proper is comparatively lower.

Keep in mind, however, that property tax funds the schools. When a city passes a tax levy, it works sort of like a zero sum system. So in theory, if you successfully lower your property tax, that decrease in is spread around as a increase to every other property. 

A bigger concern is that the city of Cleveland recently hired more than 30 inspectors to physically inspect the interior and exterior of every rental property every year. These inspections come with violations and the typical 30 days to cure.

Both the city of Cleveland and Cuyahoga Couny require every rental property to be registered. 

Try doing an eviction in Cleveland without proof of registration... your case will not be heard.

Jim

All agents have access to the same inventory, unless you can find someone who has access to wholesalers, and/or off market stuff.  Other than that, you can take a look at the county sheriff sales.  For that you would want to hire someone to represent you locally. 

Best of luck

Bob