All Forum Posts by: Vadim F.

Are you looking for a cash flow market or appreciation market? Cash flow market you should be able to achieve that, if looking at an appreciation market might be tought.

Cleveland is great for cash flow, but you need a solid team on the ground that know the city block by block.

Detroit, same as Cleveland.

Columbus - great appreciation market, cash flow not so much.

Kansas City - same as Columbus

0 Votes

When you are investing in a low income city you have to acknowledge that majority of the city will be graded the same way. The only difference will be demographics. Taking Cleveland for example the West side is primarily White, minus a few neighborhoods and on the east side (not including the suburbs) is primarily African-American. Unfortunately, demographics come into play on what areas will appreciate faster, hence the location, location, location argument. It is always assumed that when you are a certain race you are either less risk or a higher risk tenant. However, take the demographics out of the picture and your class of tenants will be the same because the City of Cleveland is majority low-income. I'm not saying go invest in Glenville, East Cleveland (certain parts), Kinsman, Central because to put it short, they are very rough areas for either an OOS or local investor. You have Slavic Village, Lee-Miles/Harvard, Hough (certain parts), Mt. Pleasant (certain parts) that are solid Class C areas. On the West Side, you will have the same C class neighborhoods and same class of tenant but because of a different demographic and gentrification they will cost more because of the "location" aspect.

Just my 2 cents and always enjoy a healthy debate.

1 Vote

Cleveland, Ohio

Quote from @Travis Biziorek:

Hey Ram, I talk to a lot of investors every week and the one thing I keep hearing about Cleveland and Columbus is the "numbers no longer work".

I personally don't know how true that is, but I have no reason not to believe people that have been investing there over the last few years.

I'm in the Detroit market and highly recommend at least giving that area a look. Numbers still work there, and I think it's one of the only larger markets left where they still do.

I personally own 12-doors in Detroit and plan to expand that after my ADU build here in California.

The numbers still work in Cleveland but they are def not what they used to be.

0 Votes

Cleveland, Ohio

Quote from @Jake Donohoe:

Quote from @Vadim F.:

Quote from @Jake Donohoe:

I am currently wrapping up my second live-in flip and am fortunate to have the opportunity to make a little over $100,000 net profit on this one deal if all goes well. I have lived in the home for 3 years and have done all of the rehab work myself. I expect to have the property listed by the end of next week, and it should move fast according to the agent I have been working with and what I have seen in the area at this price point.

The bigger part of this equation is that my family is moving to Nebraska to live on our family's ranch. We are going to live in a converted coach with only one car payment as debt, so we'll be living very cheaply. I am currently and always have been the main and only income for our household, but that will change once we move to Nebraska, as my fiancee will be contributing to our income. It will drop to about $2,500 a month, which is plenty to pay for our cost of living. But my concern is that even though we will have a lot of cash to invest, I do not personally have a job, as I will be taking on the role of a stay-at-home dad and will be looking to invest out of state.

I am currently considering a few different markets in the Midwest to buy at least one - two long term rentals properties by the end of the year. How have you navigated around the challenge of not having a job? I know this will be difficult to get financing in some circumstances, and I'm looking to take a proactive approach to solving this problem before it exists. Along with further developing my buying criteria, so that I can determine which market makes the most sense to start in. I will have the luxury of free time every day without a job, and we'll be able to aggressively pursue every deal that comes my way.

I look forward to hearing about your experiences and your different perspectives so that I can further learn myself and pour value back into these great groups. Thank you!

You can go the DSCR route where you qualify on the income the investment property generates.

I have also considered this. What has been your experience using DSCR products?

You pay small premium vs going the conv route but much less headaches for the small difference.

0 Votes

Knoxville, Tennessee

Quote from @Pamela Williams:

Quote from @James Wise:

Quote from @Pamela Williams:

Hi there. Can someone please explain briefly how the Lead Safe Certification in Cleveland is impacting landlords? I am finding plenty of information online about the program but nothing explaining how it is directly impacting buyers looking to buy and hold property in the city. I have seen a few scary things like "you need to dig up the entire front yard" in other groups but I'd like to hear from people that are actively investing in the city, and meeting the new standards, as to what their experience has been. TIA.

I've seen lead remediation costs under $1k and I've also seen them above $40k. Having said that, the bigger jobs would usually include vinyl siding an entire house or duplex as well as replacing all of the windows.

One thing to note, in the 100's of lead inspections and rehabs we've done in Cleveland, we've never seen or heard of anyone digging up a front yard. Now it's true that lead dust samples are taken from the ground, usually around windows, but putting top soil on top of the ground would be the route to go there.

Thank you James. When you are considering properties in the area, how do you assess in advance if there is going to be a major issue with the remediation if you are moving quickly to jump on a deal?

If you're looking in the Cleveland market, look for newer vinyl windows and vinyl siding. Also if the price of a property is low, there is a reason for it.

1 Vote

Cleveland, Ohio

Quote from @Jake Donohoe:

I look forward to hearing about your experiences and your different perspectives so that I can further learn myself and pour value back into these great groups. Thank you!

You can go the DSCR route where you qualify on the income the investment property generates.

1 Vote

Knoxville, Tennessee

Quote from @Christopher Trastoy:

Hey Bigger Pockets Fam,

Does anyone know of lenders that are willing to lend for properties under 100k? I am looking at some in the 60-80k ball park with little to know rehab needed. Anyone have a referral on a lender that can lend in that ballpark?

There may be some lenders available that have a no min DSCR loan but the amount you will be paying in closing costs on a small loan that will eat away a lot of your profits.

0 Votes

are you looking for cash flow or appreciation? Every city is a different market.

0 Votes

Quote from @Bob Stevens:

Quote from @Vadim F.:

In short you hire a lead testing specialist. They'll swab different parts of the inside and outside, especially doors and wood windows. After, if the tests come back positive for lead, you'll need to get it remediated by scraping and re-painting.

Correct, its a none issue IF you do it right ,

Its made into a big deal when in reality its nothing major. Just need to make sure you have the right people to do it right.

0 Votes

Cleveland, Ohio

2 Votes

Cleveland, Ohio

All Forum Posts by: Vadim F.

Vadim F. has started 10 posts and replied 333 times.

Post: Best COC market for under $200k purchase price?

Post: Agree Or disagree and why.

Post: First time investor - looking for a SFH with positive cashflow

Post: $Cash Pile And No job!

Post: Cleveland Lead Paint Laws for Landlords

Post: $Cash Pile And No job!

Post: Loans under 100k?

Post: looking to purchase first SFH rental in Ohio or Indiana

Post: Cleveland Lead Paint Laws for Landlords

Post: Cleveland Lead Paint Laws for Landlords