All Forum Posts by: Vadim F.

Hi All,
long-time lurker on Bigger pockets, but a first-time poster.
I am beginning my real estate investment journey and know that I want to invest in a property out of state (I currently live in Seattle, WA). I would like to find a property in the 200k or less range to start. I am thinking of a single-family or small duplex. I am hoping for a CoC of around 10-12%.
I am open to most markets in the US but starting to feel overwhelmed by the multitude of options. I am having trouble narrowing my search down to one market.
I am curious how you out-of-state investors narrow down your search criteria? Addtionally, what markets would you recommend to someone like myself?

Thanks in advance for your advice

Narrow down what you are looking for is it cash flow or is it appreciation? There are tons of markets out there in the MidWest where you can easily get a sfh/mfh for under 200k. Look into Cleveland, Columbus, KC, Detroit, Toledo as some of the markets to look into. Some are cash flow, some are appreciation, and some are a mix of both. After you come a to conclusion on what market you want to invest in, start looking for boots on the ground. If you don't have a team in place you will get burned OOS investing. Also, do your research on the neighborhoods in the area you will be investing in. Lots of folks will tell you stay away from lower class areas, but I would take that with a grain of salt to an extent. Lower class areas are very block by block, so work with your PM to gain the info you need. The PM is the most important boot for OOS investing. They will either make you or burn you really quickly.

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Quote from @Bob Stevens:

Quote from @Vadim F.:

When people talk about bad areas that are riddled with crime, they just throw out the zip code its located in without other details. What they aren't telling you is that it is very block by block. Get a good team in place that knows the areas inside out and you can invest in those areas safely.

CORRECT, this is why 99% have no clue what they are doing as they just read books and sit on the internet. I was told we were crazy to buy in East Cleveland, 6, 7 years ago, well who's crazy now :) Buying everything we can.

there’s literally nothing in EC and we know the rap EC gets. There’s a reason for that but people will imply to go off of statistics. If statistics were true EC would be flooded with listings.

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Phoenix, Arizona

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Phoenix, Arizona

Quote from @Aaron Rumney:

Just wanted to thank everyone for all this insight. I'm been reading every post and upvoting responses. I appreciate you all.
Thanks.

Good luck!

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Cleveland, Ohio

Quote from @Michael A.:

Quote from @Vadim F.:

Quote from @Michael A.:

What would be the best way to invest $100k and achieve financial freedom. If you had $100k what would you do with it? How could you scale $100k to making $10k per month in passive income? Looking to hear about different strategies.

Whats your timeline? Is it to make 10k tomorrow or is it long term?

Let’s try 5 years

MFH 2-4 units. Find the best cash flowing market that you are comfortable investing in. Can easily achieve that in a 5yr window.

1 Vote

Quote from @Nathan Harden:

Quote from @Bob Stevens:

Quote from @Benjamin Sulka:

Hey BP,

I'm looking to get active in the Cleveland/near Cleveland markets this year and I'm interested in networking with other local investors.

What local real estate groups/meetups would you recommend? I'm also looking to connect with others on BP as well.

I greatly appreciate any thoughts.

-Ben Sulka, aspiring real estate investor

I have extensive experience there doing about 500 deals, nothing I have not done or not know about all of the Cleveland markets. However, you need to be cash to get the best deals. I was in town last week, picked up 9 more doors.

Its ALL about knowledge and your team

Good luck

What parts of Cleveland are you buying in right now?

Im not Bob, but I will say invest everywhere in Cleveland. There are F grade areas that are getting money pushed into it that will make them prosper. Talk with local investors and see what they are doing. Reach out to PMCs and see what they say about certain areas.

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Cleveland, Ohio

Quote from @Michael A.:

Whats your timeline? Is it to make 10k tomorrow or is it long term?

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Quote from @Tim Bee:

Quote from @James Wise:

Quote from @Quincy Amekuedi:

Quote from @James Wise:

Quote from @Quincy Amekuedi:

Quote from @Joshua Janus:

Quote from @Aaron Rumney:

I know it's a hot market for cashflow, but I was wondering if I could get everyone's take on Youtuber/real estate HoltonwiseTV. They put out these section 8 rentals each day on their youtube that seem like no brainers for such a low cost. I understand that repairs would likely need to be made but does anyone have experience with them. They do property management and encourage out of state investors to use them. Can anyone give me some feedback or your own experience with Cleveland or HoltonwiseTV property management?

Hey Aaron, here is a resource I would review when checking out the Cleveland market.

https://www.google.com/maps/d/...

I would be careful of the D/F areas and focus on the B/C areas that produce strong cash flow and can be partnered with Section 8 (CMHA in Cleveland).

Hey @Joshua Janus - That's the first map I've ever seen with graded neighborhoods/zip codes for an entire City. Did your company create that map or is that available somewhere on the web for anyone to access? What inputs went into creating it?

Lol - A lot of copy and paste from The Ultimate Guide to Grading Cleveland Neighborhoods.

Thanks for sharing the guide. Has enough changed in the last six year to release a new guide or is this still mostly accurate?

It's been updated a few times throughout the years, as needed, but more or less pretty accurate. Most every area is still the same category in my opinion, although all of them have shifted upwards in cost. Although, that's a given really, real estate everywhere in the USA is more expensive in 2023 than it was back when I wrote the guide in 2015 or so.

I'm trying figure out if I should buy in Cleveland but according to the federal bureau of labor statistics it's got the 2nd highest rate for robbery at 699/100k, 3rd for rape at 128/100k and 7th for murder at 27/100k....

Every area will have its pros and cons.....if Cleveland didn't have certain statistics do you think you would be able to buy a home under 100k? Narrow down what zip codes the crimes are committed in and don't invest in them, it's that simple.

1 Vote

Cleveland, Ohio

Quote from @John Liberati:

Do you know what a typical cap rate is on the west side/ or cash on cash return usually expected in those area. If you know. Thank you!

It is possible to get 10 net caps, but Its hard to say without knowing how you are acquiring the property, cash or financing? Is it off-market or mls? Does it already have tenants in place? Does it need a rehab? What zip code is it located in? Lots of variables.

1 Vote

Cleveland, Ohio

Also, there are lots of "grade" maps that can be provided. They are good idea of neighborhoods, but whats most important is having a great PMC in place. If they have experience managing in those areas, the risk will be minimized.

2 Votes

Cleveland, Ohio

All Forum Posts by: Vadim F.

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

Post: Investing out of state.... so many options!

Post: Are crime stats enough to justify designating an area as A, B, C, or D?

Post: Are crime stats enough to justify designating an area as A, B, C, or D?

Post: Question about Cleveland

Post: Best way to invest $100k

Post: Looking to Network with Cleveland Investors

Post: Best way to invest $100k

Post: Question about Cleveland

Post: Info on Cleveland Ohio investment Market.

Post: Info on Cleveland Ohio investment Market.