All Forum Posts by: Vic Delgado

Unfortunately it wasn't me as I'm just getting started James. Thanks for the input though!

If you have any other places in mind in that area (western Lakewood, Rocky River, Westpark), let me know...

Based on my numbers, I'll still have to pay about $300 month after everything is said and done with the assumption that the upstairs is rented. Rent on the 2 bed side (where I'll live) should be $850 mth, upstairs for the 3 bed is around $1200 mth.

Thanks for the replies...!

Hi everyone!

I'm looking to purchase my first rental property via live in house hacking and renting out the other unit of a two family in Lakewood, OH. Down unit is 2/1, and the upper is 3/1. I haven't seen the property yet, but I wanted to speak somewhat knowledgeably before looking at it with a realtor. 

I'm running numbers to get a good feel for things like cash on cash return based on 3.5% down with recent taxes and best guess expenses which show approximately 54% of income. 

I'm using a 10% management fee to pay myself, $400 a year in repairs and maintenance, and $100 a month for replacement reserves. Based on pictures it looks well cared for and in above average condition, and is located on the western part of the city. (1264 Webb for those familiar)

So here are some questions: Does anyone use cap rates for smaller properties like duplexes in this area, or mainly metrics like cash on cash return? (Mine are showing 6.8% cap and 12% coc) 

Also, I've heard from several sources that the market is quite hot in Lakewood, and was curious to hear input from other members investing in this area. Does that only apply only to SF, or multifamily also?

Any input would be greatly appreciated!

Vic Delgado

Thanks for responding @Tim Bishman. My focus for the last 2 years has only been on single family houses so this surprised me a bit. It's a small one story brick building that could have many uses, but I see it mainly as property that a small business or startup would want to use.  

I will check into zoning to see how flexible the use for the property could be, but I'm also concerned about the area it's located in. It's not the best as far as crime possibly, but I don't know exactly what effect that will have on a building like this. The owner did say it was vandalized at one time, and I can see where some graffiti was removed from bricks.

I'd either like to get it under contract to wholesale if the price is right, or if the renter is qualified/and or I can find a qualified buyer, I might be interested in selling on a lease option. I'd rather have it off of my hands as quickly as possible though.

Hi everyone! 

Well I finally got my first Yellow Letters mailing out and was excited to see the results from day one. Outside of the two responses that warned to report me to the police, and one that actually took the time leave a message to tell me that "I don't mean to tell you what to do, but you can go to hell...," I got 2 appointments scheduled to look at a SF rental that looks promising, and a small commercial building that I may be able to purchase quite cheaply.

The building is located just North of I480 on Lee Road in Cleveland OH. Does anyone have any experience/knowledge of this area of Cleveland with this type of property? It is a small brick building that used to be a catering business, but I can see multiple possible uses for it with some work. I'm going to see the building next week and I wanted to have a few ideas prior to the appointment.

The owner said there is a party interested in renting which she isn't willing to do, but I thought if I could talk to the party and maybe do a quick purchase and lease option it out that might work also.

Any suggestions or comments on the area would be appreciated!

Thanks everyone for the helpful information!

Thank you @Claire Trammell, and @Shannon K.! I''ve been considering using Realty Trac also to search for preforeclosure properties with equity and send out letters.  Let me know how it goes Shannon...

Hi everyone,

After finishing and selling my first flip in January, I've had difficulty finding properties on the MLS that match any kind of criteria for buying and selling a flip property. I know this information is probably a broken record, so I'm trying to move over into the off market area.

Who has experience with large mailings in this area? What has worked/has not worked for you? I don't want to send out too large of a list and not be able to deliver if I get a large response, but I'd like to get leads so that I can move forward in my business.  I've read multiple articles written here on BP, but I'm curious to see what has worked for Cleveland area investors...

I'm trying to find houses for a flip property, but will consider wholesaling, and buy and hold properties.

Thanks @Joshua D. and @Robert Quinn for the input. The rent you mentioned sounds about right in the $1100 range and I'm seriously going to look at that route.

I should be hearing from my Realtor soon regarding the property to see where I stand!

Hi everyone,

I haven't been too active as of late due to my first flip which was purchased back in late March.  So here I am, the point of sale is completed, and I'm curious to see if any local Cleveland investors (esp. the Bedford area!) have any input as to an exit strategy for this property.  

Right now I will do a little better than break even on it if I use a Realtor to sell it. I've had it listed on Zillow, CL, and ran an open house. Most interested parties are asking about RTO, and I'm getting good feedback on the house. The price I have it listed (90K) was based on comps my Realtor showed me in the spring, but it seems the market may have slowed a bit now that we are nearing fall. It has been on the market about 2 weeks.

Is anyone familiar with the rental market in Bedford?  This is a 3/2 that turned out beautifully, and would be great for a starter home. I own the home outright and have considered renting it, and refinancing it to pull out equity before considering my next deal. Bedford has varied areas and this home is in one of the nicer neighborhoods with a wooded lot behind on High Street. 

I feel like I could write a book based on this first flip alone, and any comments would be greatly appreciated!

Vic Delgado