Multi-Family in Bedford, OH *Newbie Investor*

[Wei Mai]

Hi everyone,

I'm looking to start my real estate investing journey and have been looking at Multi-Family properties in the areas around Cleveland, OH. I prefer something that needs little to no rehab to start out. If anyone can suggest areas in OH that has a great potential for positive cash flow would be appreciated. This particular property is located in Bedford, OH and is a duplex with 4 beds, 2 baths, 2 car garage. I used the BP Rental Property Calculator and posted the numbers below. Please note, I do not know the ARV and the numbers are on the conservative side. Would really appreciate everyone's experienced feedback. Thanks!

[Michael Swan]

Hi @Tom Ott

I beg to differ from your opinion. I have 48 front doors in Painesville and I traded in 3 small little San Diego Condos that were cash flowing about $15,000 total that I purchased in 2011 and 2012 for three Painesville Apartment complexes that cash flow currently at $65,000 a year using the power of the 1031 Exchange and I have also increased the value by increasing the NOI, approximately $300,000 in a short 18 month period. The most amazing thing about Multifamily is that you are not at the mercy of comps. The primary way banks value apartment complexes is based on the NOI.

Sooooooo, if you purchase an apartment complex from a burnt out landlord, possible living on sight, or just not doing it right, and has the complex completely paid off and you notice that all rents are at least $100.00 under market rents, and you have strong reserves, multifamily is the quickest and most efficient path to financial freedom. 

When I had 10 single family, that was more work than the 86 front doors I presently own in your neck of the woods.  If I wanted 86 single family, that would mean 86 roofs, insurance policies, mortgages etc...

Economies of scale are critical.  The natural progression is to eventually move to true Multifamily!!  My goal is a minimum of 1000 front doors.

Onward and Upward!!  Whatever the mind can conceive and believe, it will achieve!!!!!

Swanny