All Forum Posts by: Tyrell Perry

Very possible @Eric Foss. I recently found a quadplex for a friend of mine in the Buckeye-Shaker neighborhood of Cleveland, OH. He paid $41K for the property and three of the four units are rented at $450/mo. The 4th unit is in rent ready condition. Unsure on the zip code grading level (44120) but from the optics, it appears to be in the C to B- range, however, as with most things in life, grading scales are relative. 

Given your criteria, I presume you want to make a moderately unsafe investment with little capital down. I'd target tenant occupied properties, preferably with longstanding tenants in one of the units. I started out with this approach and it has been fruitful. For example, you can make a purchase between $10K - $17K and over the course of one year put in $10K to stabilize the property. You'll be under your $30K threshold and will see tenant income to bolster your confidence. Upon stabilization, cash flow will double your minimum criteria but that can be treated as a bonus. While this strategy works, it does require significant time and energy to reach stabilization. Good luck!

@Diogo Marques May be able to assist with your search. Send me a message once you purchase the property.

@Melanie Armstrong You're on the right path as water & sewer charges are excessively high in Cleveland. Based on my data, washer machines tend to use .5MCF-.6MCF per month. Initially, I charged tenants an additional $50/mo. for the installation of a washer machine. Recently, I've decided to raise the surcharge to $65/mo. to offset the cost.

Thanks for the intel @Matt Motil...I'm calling Guardian in the AM LOL

You seem to be headed in this direction so here are a few tips:

1. You need to be motivated and commit a significant amount of time for property stabilization.

2. Tour before you buy

3. Don't trust anyone 100%, don't accept excuses or think emotionally

4. Find a contractor that does quality work at a low cost, keeps you informed and understands your vision. Most likely, you won't find the ideal candidate until a few months in. 

5. Have cash or credit reserves on hand for unforeseen repairs (For Cleveland war zone investing, I recommend $4K/unit...your market may be different)

6a. If possible, purchase a property with a longstanding tenant. 

6b. Don't be afraid to increase that longstanding tenant's rent. 

7. Be hands-on with paying all expenses and ask questions when clarification is required.

8a. If you employ a Property Manager, talk with them frequently so they understand your vision. 

8b. Do not hire a contractor as your Property Manager

9a. Discuss repairs directly with your contractor.

9b. Discuss repairs directly with your Property Manager.

10. Be prepared to start out as a solo journeyman and know others will assist along the way. 

11. Recognize there will be many highs and lows.

Best of luck with your journey!

Contact Fifth Third Bank if you have yet to do so.

If you purchase a rental in Canton, OH and do not occupy one of the units, you must register the property with the city for a non-owner occupied fee of $80/unit. The property must be registered every time ownership changes even if registration has been paid for the current year. Failure to register within 30 days results in a fine of 2X the registration fee. As for me, I failed to register a triplex so the fine was $480. Coupled with the registration fee of $240 and the inspection fee of $100, this was an unexpected nugget of $820. My loss is your gain. 

Happy Investing! 

Moving forward, please provide the requested info in your comment.

Follow-up emails have been sent to @Greg Weber and @Marvin Degroat

Add this freshly rehabbed and fully occupied duplex to your investment portfolio. Tenants are on an annual lease and both have an expiration date of December 31st. Rehab included new furnace, hot water heater, plumbing, electric wiring, cabinets, tile, and paint. Monthly Operating Expenses are noted below:

Insurance - $73

Water/Sewer - $60

Management - $70

Taxes - $28

Maintenance - $170 (*conservative budget)

Profit - $674

Annual NOI - $8,088

DO NOT DISTURB TENANTS

@Kim Tucker I concur. One can definitely lose their shirt making these under $20K investments without nothing in the bank. In Cleveland, many landlords do not provide sufficient property upkeep so an investor has to be prepared when the "Must-Do" repairs arrive and tenants vacate. 

With that said, many landlords are charging below market rents so after making those repairs, one can increase the rents. For example, I had a tenant vacate early whom was in the property upon acquisition. The tenant was paying $450. I put $2,800 into the unit to get it rent ready. I put it on the market at $515 and it's now being rented at $615 as the tenant has a washer/dryer and pets. There is opportunity but you will need the rainy day reserves.

@Kim Tucker Everyone is entitled to their opinion and I respect yours. However, real estate is not a one size fits all and there are good people who live in under served communities. There are rotten apples everywhere, hence the need for due diligence.

@Jake Recz Send me your email in a PM and we can discuss further.