A house in Maple heights, greater Cleveland, oh

[Ari Hadar]

https://dealcheck.io/s/-MRZTi1...

Here is a property from a wholesaler. 3/1,1150 sqft, 75k ask, arv 120k, rent 1000...it doesn't cashflow due to big tax 3744 $a year. 

Here are pics of the property... 

https://drive.google.com/folde...

Why is the tax so big and operational expenses are 59%?

[James Wise]

Originally posted by @Ari Hadar:

Originally posted by @James Wise:

Originally posted by @Ari Hadar:

https://dealcheck.io/s/-MRZTi1...

Here is a property from a wholesaler. 3/1,1150 sqft, 75k ask, arv 120k, rent 1000...it doesn't cashflow due to big tax 3744 $a year. 

Here are pics of the property... 

https://drive.google.com/folde...

Why is the tax so big and operational expenses are 59%?

Maple Heights has one of the highest tax rates in the Cleveland area. As such a 59% operating expense sounds about right. However big issue here is the $120k ARV is all smoke. Ain't nobody buying a SFR in Maple for $120k.............Ever.

   Do you advise to steer clear of Maple Heights because of high tax like in Shaker Heights? 

one PM told me indeed that the ARV is 75-85k only and the house worth 60-65.Regarding the operational expenses beyond 50% of the rent you can hardly cashflow...

 Not necessarily no. You just need to understand the numbers...Be able to properly analyze the risk, expenses, rents, point of sale issues and then be able to buy at the right price. This is true for any house in any location.