All Forum Posts by: Vadim F.

 I closed last week om a 7 unit. :) 

I Can get them :) 

 Hi Bob,

Thank you for your feedback. The Cleveland market is also on my radar, and I see there has been both job growth and appreciation in the past, but the only thing that makes me nervous is the level of population decrease. Cleveland has the largest amount of outbound migration out of all the cities I’ve researched. I know it will still appreciate but just doesn’t seem to be at the levels of some of these other markets. But Cleveland is definitely still on my list and will continue to research. Would love to hear what some other people have to say on this subject as well. 

 Well if you can find me a MF in East Cleveland from the RTA area to the Micky Building/ Solar farm let me know, there is Nothing out there. I did however get a 7 unit on Emily last week. Want more 

thanks 

Hi, 

My brother and I are looking to invest in our first property. I currently live in Miami, FL and he lives in LA. We are open to long distance investment.
-Our capital is around 20-25k and we both have a great credit scores
-Turn key investment (We don't want to spend time fixing the property)
-Looking for a LT rental, single family home
-We were looking to get a home around 80k or less (to be able to cover the downpayment, closing costs, minor fixes).
-Looking for a market that could provide a good cashflow based on current market conditions
-Looking to do a conventional loan or DSCR

I am currently looking at: Columbus OH, Cleveland OH and Indianapolis IN.

Could you please let me know what markets are good markets based on these criteria and the current RE market?

Looking forward to connecting with you all! 

Best,
Vladimir

@Najma Osman Thank you Najma! Just replied :D

@Vadim F. I am looking at Akron, and aiming more for cash flow

Hello BiggerPockets Community,

I hope this message finds you all in good spirits. My name is Dzung Doan, and I am new to the world of real estate investing, specifically in the buy-and-hold strategy for rental properties. I have a starting capital of between $35K-$50K and can additionally save between $3K-$5K monthly for further investments. I'm also planning to utilize conventional loans (30-year mortgage with 20-25% down payment) to finance these investments.

My goal is to keep my investment journey as passive as possible, focusing on markets and properties that can offer consistent cash flow with minimum hands-on management. At this point, Cleveland, Ohio, has piqued my interest due to its stable economy, affordability, and favorable rent-to-price ratios, and I'm considering it as a potential market for my first investment property.

As a newbie starting out, I am keen on hearing from experienced investors, particularly those who have invested in the Cleveland market from out-of-state. I am eager to understand:

1. The nuances of different neighborhoods and their respective investment potentials
2. The challenges and rewards you've encountered in this market
3. Your experiences with local teams (agents, property managers, contractors, etc.) you've worked with
4. Any key lessons learned and strategies that have worked well for you

I would also greatly appreciate insights on potential pitfalls or critical issues I should be aware of as I consider investing in this market.

My ultimate aim is to make an informed decision and hopefully start a rewarding journey in real estate investing. I am open to all advice and suggestions and am looking forward to engaging in insightful discussions with you all.

Thank you in advance for your time and for sharing your experiences.

Best regards,

Dzung Doan.

Hi All, 

I'm an out of state investor looking to start a rental portfolio in the Cleveland area for small multi families (2-8 units). My plan is to mainly focus on cash flowing properties that make the 2% rule. What are your thoughts on Cleveland as a place to begin investing and What areas would you recommend I begin looking at? Any advice you would give to someone first starting out?

Would also love to connect with experienced Cleveland rental investors.

Much Thanks

Hi! I've been lurking on bigger pockets for a few years now, excited to finally be taking a dive into a first potential investment. My biggest goal is to maximize cash flow.

I've been working with a particular turnkey investment online service that has listings in Ohio. This service seems to be highly recommended on bigger pockets. I already have a preapproval and am comfortable with a purchase price of up to $180,000. One thing that was attractive to me with this service is that they already have property management in place and will help find tenants once the property is rehabbed.

I'm a bit worried about the pre prepared proformas they have for each of the available properties. For example, this one proforma I see for a property valued at $159000 assumes a 6.25% interest rate on a 30year fixed mortgage. Now I've talked to several lenders, and while this could be a potential interest rate for an aspiring homeowner, it is much too optimistic for an investor. The rate I was quoted was 7.125% with 2 and a half points purchased ( I have good credit at 750+).
Moreover, there is a promotion from the turnkey service where the first year property management fee is waived, therefore it is not listed as an expense on the proforma, which only covers the first year. With the lower 6.25% interest rate and no property management fees, the first year cash flow appears to be fairly healthy- $3864 annual cash flow on a total down payment (adding assumed $5K closing costs) of $44,750 (8.63%).

Now if I take the higher interest rate into account (7.125%) with the purchase of 2.5 points, that increases the total money put down to $48,725. And with the addition of the property management fee (assumed to be 8%), this increases my overall expenses and brings down cash flow to $1662 annually. The cash flow is now a bit disappointing- $1662 annual cash flow on a total down payment of $48,725 (3.4%).

I guess I just want to get some agreement that this is not a great investment. Any thoughts on this? I'm also happy to provide more information if that would help.

Note- I am a true beginner, I just graduated last year and since I don't know anyone else who does this, I'm literally following the instructions in a book. Please let me know if there is something wrong with my reasoning above.

Thank you all in advance!

I'm the listing agent on now 3 current failed OOS investments. In each scenario there were patterns I noticed: 

- The investor bit off a large rehab with almost no experience managing rehabs before in their real estate career (sounds smart to do the first one miles away right?)

- The investor managed it themselves from OOS. 

- The investor took their Realtor, Lender, Property Manager at face value, and were clearly taken advantage of. 

Personally, I would NEVER invest out of state without AMPLE experience investing close to home. The reality is, absolutely nobody will care for your property as much as you will. Having eyes on it (accountability) is huge. Additionally, I think it's always wise to cast your net wise and talk to a few realtors, property managers, etc at the beginning, and earnestly seek feedback, rather than going with the voices that confirm everything you already think. Always ask, "What could I be missing here?"

I'm curious, when do you think (if ever) it's smart to invest Out-of-State?