All Forum Posts by: Vadim F.

Before you put in an offer, what is the best way to make accurate rehab cost estimate? Ask three different general contractors to look at the house and give you a bid? That seems to be lots of work for real estate agent and myself.

Have you done any remodels in the past? Are you familiar with cost of labor in your area? Are you familiar with cost of material? If you are going to put in an offer on a house that needs a rehab, either you need to have a rough idea of the costs for labor and materials, or get a GC to walk the property with you and pick their brain on how they are pricing things out.

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Quote from @Jake Burkons:

Hello Bigger Pockets,

I am currently looking for a relatively cheap(25-50k) single family home on the east side of Cleveland and surrounding suburbs. I know the home probably won't be in the nicest area however there are some decent areas in Cleveland and suburbs like Maple Heights and Euclid that I'm considering.

Do y'all have any recommendations of what areas in particular to look in?

Also is there anything in particular I should look out for when buying a home in these areas. I know crime isn't great but are there any other outlying factors that would be detrimental for an investor?

Sincerely,

Jake Burkons

You want be all in for under 50k? Thats going to be tough, unless you are going to be all cash in a warzone. I would focus on higher priced properties in 100k range or so that are already tenant occupied where you could qualify on the income they are producing already. Then you can go in at 75 LTV (MFH) on a DSCR loan.

Regarding East Cleveland, there is money being poured into the area so it becomes an extension of UC, hence be called CircleEast but that will only be the first 10 blocks or so along Euclid.

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Cleveland, Ohio

Quote from @Hyeseong Park:

Quote from @Jay Hurst:

Quote from @Hyeseong Park:

Hello,

I recently bought a distressed property at the end of June (6/27/23) for flipping as my cash only and I just finished rehabbing it using my cash only and put it on the MLS market currently. But it seems like selling has not been going well. (It's been 14 days).

So I was thinking of a plan B if things don't go well, which is refinancing and I would like to know if I can get any good loan option for refinancing as my house has been owned only 4 months so far. No tenants now but I'm planning on renting it, once I will get refinancing. What loan is the best option for me? As I bought & rehabbed it as my CASH only, I would like to know if there is any good loan for going off new appraisal value, not purchase price + rehab, without any seasoning condition better than people who have mortgages on their investment properties.

Can we put some numbers on it? It will make the examples a bit easier. If so, what price did you pay for the property? And what do you think it is worth today? assume single family?

Yes of course,

My scenario is as follows:

-Purchase Price: $59,000 (but I flipped this house after buying it so now it can be worth between 150~160k based on my realtor)

-Rehab price: $25,000

-Market Rent: $1,300
-Property Taxes: $1,324
-Annual Insurance premium: $1,200
-HOA fees: N/A
-Number of units: 1 single family house
-Estimated Credit Score: 690-700

Curious what market this is in since that is a very large spread.

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Cleveland Market is going up daily. If for example the median rent for a certain zip is 1100mo, put it on the market for 1200. There is no such thing as a credible source for a rental market that is constantly going up. Those sources take the values for the year and not today.

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Cleveland, Ohio

Quote from @Robert Ellis:

Quote from @Vadim F.:

Cleveland cash flow is king but also has some appreciation. Property I bought in May of this year has appreciated 15% already. Purchased with a tenant in place as a 13 net cap, but once I raise rents to market in a few months it will be 18 net cap.

unless it was forced appreciation I'd love to see a house that appreciated 15% in 6 months.

The recent comps in a 1/2 mile vicinity for similar size and condition are up 15% from May of this year. I haven't done any work on property since its tenant occupied. If the tenant moves out at end of her lease, I will then do some work and force more appreciation into it.

1 Vote

Cleveland, Ohio

Quote from @Michael Madani:

Hello all!

It's a pleasure to be a part of this group. As the title states, I am ready to buy my first rental property. I have 100k as my disposal and I am currently looking at single-family homes or multi-family homes. The goal is to purchase to rent, then do a cash-out refi to add more homes to my portfolio. I am using ROI spread sheets (which I'm sure everyone is to an extent) and simply looking at cash-flow positive homes using the 1% rule. I am having a hard time finding single-family homes that meet the 1% rule and some multi-family ones. Does anyone have any advice on where to begin? I currently own a home, so the living-hack does not suit my situation, any suggestions? Also, is my 1% philosophy skewed, am I being narrow-minded, is it a location thing? I am open to any and all suggestions. Again, just starting out and I will love any advice. Thank you!

If you are looking to BRRRR in todays market it's not that easy to achieve. You have to buy the property for pennies on the dollar and have boots on the ground that you can trust. Also, like many others have mentioned, 1% deals are easy to achieve if you are in the right market. If I were in your shoes, I would look at a market like Cleveland and purchase MFH with 25% down, and you can purchase them with a DSCR loan where either current rent or potential rent be used to qualify. But before proceeding with anything, build a team you can trust.

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Cleveland, Ohio

Quote from @Cheryl Schuck:

Hi, I am working on my first flip and have started bringing in GCs for estimates. Since I know a lot of individual contractors, would you recommend speaking with electricians, plumbers etc to cut out the middle man and engage them in the project or would you suggest that I work with a GC and let him pull his team together?

Any thoughts on this would be most appreciated. FYI, project is in North Jersey

Are you ready to be a project manager and manage/schedule the jobs when they are needed? Also, how much of a potential savings would it be vs how much you value your time? Also, are you able to order all the needed supplies needed for the jobs? If you are managing the project yourself, you will be 100% devoted to that. In the end it comes down to your level of experience working with different trades and how much of savings vs value of your time. Good luck!

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Quote from @Deep Patel:

I'm looking to buy two duplex properties in another state, Cleveland Ohio, and I wanted to see if this is something I would need a property manager to mange. The properties already have tenants, and one of the properties is Section 8 approved which is what I would like to do to all the units. I'm wondering if I need a property manger or a property management company to manage these long term rentals. If so, how much should I expect to pay? I've researched and saw that people have been quoting about a month's rent for management fees for a year, is this accurate? Would love some help here

Absolutely need a PM. It will cost you 8-10% of the rent. $100mo to not deal with any headache in market you don't know or live in is worth the cost.

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Cleveland, Ohio

All Forum Posts by: Vadim F.

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

Post: Cash flow deals.

Post: Rehab cost estimates

Post: Investing in the east side of Cleveland and suburbs

Post: Question about the best loan I can get for refinancing

Post: Data Source Credibility

Post: Best cities to invest in Ohio

Post: First Post - Ready to Buy!

Post: Best cities to invest in Ohio

Post: Renovating first project

Post: Do I need a property manager/company