All Forum Posts by: Tyler Brown-Lewis

For my ppl on BP what is the best way you've found to get the actual information of an absentee owner or potential seller (their actual mailing address, phone number or even email)? I've checked county auditors list and found owners but the road is stopping there after solving the obvious which is personal or company name listed and basic info the auditor provides which is usually the same address that's vacant. Aside from leaving a letter in the mailbox, are there any good public information websites you can refer or other strategies to get in contact with people? Any help is greatly appreciated.  

Oh and Don in the post above us 100% right about insurance you have to tell them and your rate will go up for the extra space added. If something happens in that “new unit” and they didn’t know of changes to the house then they’re not covering it. 

From experience contact the building and housing dept before any work starts with the renovation to pull permits and talk about the changes you want. Your best and cheapest bet is making the third floor electric heat only because running and installing gas lines all the way to the third floor will get expensive then you have to get another gas meter with is a lot harder than getting the meter base changed. If this is a mulifamily and things get tough with permits or whatnot it’s a lot easier to combine the second and finished third floors and ask for higher rent then legally changing the house by adding an extra unit IMO with the auditor/city. free to pm if you have any questions.

Be encouraged. There are investors who make money in East Cleveland everyone. You’re only as good as your tenant choose wisely.

Wesley, it is good the house has two separate sides that seem that they can be divided. Getting an electrician to divide utilities shouldn't be too bad, you will need an hvac person as well for a extra furnace. Are there at least two separate legal exits to each unit? In my experience with zoning it really is dependent on the city and county your house is located in and what does neighborhood consist of? Some counties are strict when comes to zoning while some are more lax and you might find yourself having to go in front of a zoning board and getting their approval so the best thing you can do is contact your county and getting an inspector out to the house an start the process. Neighborhood matters because if the house is surrounded by other multifamily housing then you have a better chance of being granted the title of multifamily for your home as well. 

Lastly, I really advice you not rent the place out to two different families or people prior to getting it properly zoned as a duplex. If there was a fire or incident in the home your insurance company will not cover the home when they find it was not being rented under proper use and it could be a legal nightmare from a liability standpoint with tenants.   

Shannon, it'll be hard to get a willing realtor to find houses for you when they know you have not been pre approved. Prior to me getting my license I actually found my first deal through Zillow. I searched preferred areas that I was looking for a multifamily home and set reminders whenever something new got listed in that particular area. Your experience on Zillow will be similar to mine as once you see the home you like they have the option for you to contact the agent. Of course you're welcome to call and ask the agent about the house but I guarantee that 95% of them will only listen to you if you're pre approved unless you have all cash. That leaves you with the option of searching for sale by owner (fsbo) which would give you a lot more flexibility in structuring a deal. Believe it or not craigslist isn't the worst option when searching for distressed property either. I mean don't get me wrong most of it is junk but from time to time there really is someone in a tough situation who wants out a house and doesn't want to pay a realtor. However, if you do find a deal through that platform always involve title companies/insurance. Just my .02  

Good deal, Im honestly wondering is it possible that you could share your private money lender (PM me)? I'm looking for one to do similar deals with.

Look up first time homebuyer programs in your state and find the preferred list of lenders that is used, chances are those banks/ lenders will have less stringent qualifications when giving loans. TBH this process will obviously be a lot less stressful for you with finding money first but from prior experience sometimes finding a deal and then being forced to find money is a good way to build resilience. Ask yourself if you found the perfect deal tomorrow (perfect house for the right price in the location you want), what are the lengths you would go through to secure the deal? Family members? Pulling money from 401k''s? Taking out cash value from your Life insurance? I believe if your think like your back is against the wall now instead of when a good deal comes around you should find your answer sooner rather than later. Best of luck, I'm sure the lender your looking for is out there.   

Personally I hold background checks to a higher standard than credit. People from all walks of life have so-so credit for various reasons and it is not the greatest indicator of finding a good tenant. I have a set list of questions that I ask every potential tenant before I even meet them. How many ppl will be living with you at the residence? Where are you currently working? Whats your reason for moving? If you are truly apprehensive another thing you can do is physically visit the prospective tenants residence. It might seem invasive but you can see first hand how someone keeps their space and chances are they will treat yours the same. 

Josh I won't beat you up regarding your %50 cap rate, yes it is possible along the rust belt regions if you buy right. Its never going to be in the greatest of neighborhoods but it is possible especially if you self manage. Why you seem so secretive about your numbers when you started the article is beyond me however. To answer your question, multi is always the way the to go in my book because not only do you have a greater method of income with multiple rents to be collected but the house is less likely to be vacant in the case of a move out/eviction.