Moisture Concerns from Lake Erie

[Babatunde Onadele Jr]

I am reviewing a property in Euclid,OH and curious if being in close proximity to Lake Erie can negatively impact the house? 

Specifically maintenance on porch floor boards and increased weathering.

thoughts?

[Andrew Postell]

@Babatunde Onadele Jr of course!  Anything from moisture to extreme heat to shifting ground to hurricanes to fires to harsh winters to EVERYTHING could happen when you invest in real estate.  There will always be something no matter what market you are analyzing.  And you should be using a constant maintanence/cap ex number on all of your deals that factor this in.  I use 18% in my calculations.   

Now, as someone that has invested out of state for many years the most critical piece of the equation to me is where is your trusted network of advisors? Meaning, if you don't know anyone in Indiana....but you do know a real estate person in New Mexico....then you need to go with New Mexico - even if Indiana shows you more returns on paper. As an out of state investor you may NEVER EVEN SEE YOUR PROPERTIES....so you need people that you can trust. So if you know a realtor in Euclid, and have a good property manager there, and also have an insurance person, rehab, contractors, etc. then go with that place over other places.  If you think this "porch" is a concern, then make your offer $5k lower to compensate for it.  I always feel a lot more comfortable with properties if I buy them at lower price points.

Hope all of that makes sense.  Thanks!