All Forum Posts by: Steven Cathcart

 Just beware: East Cleveland is a whole different animal in the Cleveland market. 

 @Remington Lyman Interesting idea! I bet it could help pinpoint common questions and/or themes that you have responded to, as a way figure what a lot of people have questions on or need advice about. Would be cool to see!

Hi Orlando, I'll happily recommend David Streeter with Streeter & Petropouleas. 216-393-6955. I've used him personally many times!

Hi @Silvio Tyson, welcome to the Cleveland market! A huge aspect is having solid boots on the ground. Cleveland’s a very block-by-block city. Two streets over can mean a totally different tenant base, rent rate, or headache level. Make sure someone you trust is walking the properties and checking comps the right way. And learn which suburbs have Point of Sale inspections and how to navigate/assume them (they can definitely throw a wrench in your timeline if you’re not prepared). 

For question 3, I'd recommend finding an investor-friendly agent who understands the BRRRR strategy, rehab costs, and what makes a rental a good hold here. Lean on their network for a GC and PM they should have folks they've used or trust. Ideally your agent is well-connected with flippers, landlords, or is an investor themselves.

Some mistakes to avoid (not an exhaustive list by any means): Underestimating rehab costs, buying in rougher areas because the numbers look good on paper, not understanding (or ignoring) point of sale stipulations in cities that require them.

If you want a second set of eyes on a deal or just want to talk strategy, feel free to shoot me a message. Happy to help however I can. Cleveland’s a great market if you play it smart. Good luck on deal #1!

 Hi Linda, echoing what others have said, house hacking is a great way to wade into the pool of real estate investing. There are plenty of duplexes in and around the Cleveland area, both east side and west side. Consider whether you want a property that is turn-key and ready to go (generally higher purchase price) or needs some work. You'll need one side vacant to live in, so if the property is already occupied, ensure the tenants lease is either ending soon or that they are on month-to-month status and you can vacate them relatively quickly.
Another tip about house hacking: consider purchasing in an LLC, and don't let your tenant know that you are the owner. Basically pretend you are a tenant just like them. It provides a buffer between you and the tenant, plus you have the opportunity to learn what a tenant actually think of your property!
If you have any questions or would like help in your search, don't hesitate to reach out!

Hi Colton! In the heart of Medina, do you mean around Medina square? I have off-market buyers in that area, feel free to shoot me a DM if you still have this under contract.

One approach I've used in the past is to utilize a platform like Propstream, filter for recent cash buyers in the area that have bought something similar in the last six months, and find their phone numbers and call them. It's a lot of leg work (you also could use VAs), but you know you're dealing with real cash buyers at that point. Just tell them you have this deal, would they be interested, and if not, do they know of anyone who would?

Best of luck!

Are you planning on using a property manager at all? If so, they will likely have a lease that should cover all pertinent information. @Nadeem Alamgir had great points. I'll add Pets to that mix. If you choose to allow them, be specific with what type (dog, cat, bird, fish), size/pound requirements, the number of them allowed, and a pet deposit. Either a one time fee upfront, or add on an additional cost per month. If you don't allow pets, put that in the lease. Tell them that if they try to sneak one in (which happens more often than you think), you will terminate their tenancy. Pets can cost you a lot of money when it comes time to turn a unit.

If the roof repairs makes you feel uncomfortable, request an additional inspection by a contractor or roofer (assuming you checked "Any additional inspections deemed necessary" in your purchase contract). Most of those items are relatively easy fixes. The granule loss on the shingles though may indicate a new roof is needed. 
Worst case scenario is you use the inspection to renegotiate, the seller says no, and you can decide to buy it as-is or walk away.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,125,000

I found this mom & pop owner of a 19 unit on Lakewood's west end through a direct mailing campaign. The husband and wife team had owned and operated the building for the last 20 years. They kept it in fantastic shape. It was one of the best apartment buildings I have seen in my career. We brought in equity partners on this purchase; my partner & I retained 50% of the deal for finding and negotiating, and our other partners put up the downpayment and manage it for the other 50%.

What made you interested in investing in this type of deal?

Great value add commercial opportunity in an A+ suburb

How did you find this deal and how did you negotiate it?

Direct mail. Negotiated with the owners directly.

How did you finance this deal?

Bank financing with an equity partner supplying 100% of the down payment.

How did you add value to the deal?

Updating units and consistently pushing rents.

What was the outcome?

Stabilized building in a great community. We still own it.