All Forum Posts by: Ryan Evans

@Kelly Pierce my go-to realtor got too busy so I got licensed to take over all the buyers for their team and to represent a bunch of my out of state contacts who are buying out here. I'd be happy to chat a bit and help steer you in the right direction, but it really takes a trip out here to get a feel for the market. You shouldn't buy without vising the area you decide on, and I dont' generally work with investors who haven't been to Cleveland since as @Brandon Sturgill said, only a small fraction of people actually buy. But the ones who do are repeat customers! 

@Ryan Mainwaring yep. Right now I've got a buddy from Seattle under contract on a duplex for 70k. All the mechanicals, bathrooms, and roof have been updated in the last few years. It just needs about 5k when one of the tenants turn. Here's how the numbers look. Rents are somewhat conservative. 

All in =$80k give or take with closing costs/minor rehab.

Rent - $1,300 ($650/side) 

Mortgage - $270

Tax - $140

Insurance -$65

Utilities - $150

Maintenance - $100

CapEx - $100

PM - $130

Vacancy @ 5% - $65

Net Cashflow - $280. 

You've really got to know what to look for to get these numbers. It's easy to get into a property with tons of deferred maintenance that will kill the deal over time. 

You're not talking to the right people. 

I can only speak for Ohio where I invest, but you can go buy nice rent-ready MLS listed properties all day long that are over 1%. My 2-3 unit properties are in slightly riskier areas, but they range from 1.7-2.7%.

Even my very low-risk partners and clients are buying 1% minimum multifamily deals that cash flow 200-300/month. 

People in Cleveland need deals, decent property managers, and contractors who actually show up! 

My main concern with that deal is the land size. 3+ acres means a lot more upkeep. And even if the tenants take care of it now, don't assume that will last. There are so many good properties you could buy on the MLS for 100k and rent for 1100-1200 so I'm not sure it's worth the hassle. Also, if it needs 30k to add 40k in value, it doesn't sound like it's got a lot of margin for error.

Almost all the used appliance dealers I've used don't touch dishwashers unless they are new scratch and dent units. They're just too unreliable used. 

Does anyone have a good go-to rental grade dishwasher model from Home Depot or Lowes? I need to buy a couple and don't necessarily want to just get the cheapest. I'm going for least maintenance over time. 

You might be overthinking it. It's going to be overwhelming buying your first property no matter how many podcasts you listen to and books you read. 

For me, the biggest turning point was probably just going and looking at properties. You've got to make it real! The only way things start happening is when you actually start calling lenders and getting paperwork started. Their job is to help you through it so don't hesitate to start having those conversations. 

Find yourself an agent who is investing in the types of properties you want to get into and have them show you what they are doing and guide you along. Don't just get stuck with a burnt out gym coach who got their real estate license to put food on the table. 

Until you talk to a lender and start looking at houses, nothing will happen. So might as well get started. That will very likely give you the momentum and motivation you're looking for!

If I was starting over and doing a house hack I might buy a double in Edgewater or Lakewood on a 203k loan and finish out the attic to be a 4 bed.

You can put rules in the lease. You can also do a sublease agreement which may be worded a bit differently. A decent attorney should be able to put together a good lease for less than a couple hundred bucks and then you can just use it as a template from here on out. 

And just a tip, if you've got multiple people renting rooms, nobody will ever want to clean. Hiring a consistent cleaner to come through every couple of weeks is a must according to my friends who do that strategy in the area! Sure, it's an extra cost, but it makes a property more attractive to tenants as well, so it's worth considering. 

Exactly that, it could be a simple repair or a major one. Most 100 year old houses are going to have some level of moisture in the basement, though. Even nicely finished basements often have issues once you get the moisture reader out. 

If you're just looking for unfinished basements in mid level rentals then a little moisture shouldn't always be a huge concern if the foundation is solid. If you're in a part of town that justifies it, you may have to factor in waterproofing to your rehab costs and that can obviously be expensive. 

Check the gutters, downspouts and grade of soil/cement around the house and make sure it's draining properly as a lot of basement moisture issues can be fixed by backfilling and extending your drainage further from the building. Plus, if it's minor, you can always just run a dehumidifier in the basement year round. It's a minor toll on your electric bill, but I know a ton of people in the area who do that and it seems to work just fine. 

@Mark Harris I'll help you come to a conclusion. No. It's not worth it. 

I bet there are plenty of owners in East Cleveland that would pay you to take properties off their hands. Not a strategy I'd recommend, though.