All Forum Posts by: Abiy Tedla

Hey Ruben,  I'm hoping to start making offers on a few duplexes in the next week or 2 before winter as I just got an offer on one of my properties.  I'm doing my 1st 1031 Exchange iwith my brother and it's been a good experience so far.  Check your inbox for my realtor's contact.  She's very experienced at working with investors and she's knowledgeable about the different areas around Cleveland.  Let's connect and share notes on investing in CLE in the future.

Done and done!  This is after running the numbers, factoring the risks and cost of listing the profit.  It saved me the stress of dealing with the unknown and delaying my timeline to get to the closing table ASAP... that is priceless!   Thank you for helping me process the deal!

@Ruben Jimenez, Hey there, good to hear from others investing in Cleveland. My brother and I are also currently looking to invest with duplexes, tri and mid size MF (20-40 doors) via 1031 Exchange. We put together a team of realtor, PM, attorney, CPA etc... Apart from my amazing realtor/investor who is very familiar with the area, I don't want to send recommendations on the rest of the team until we start doing business. However, let me know if you're interested in connecting and sharing knowledge/network as out of town investors. I learned a lot about investing in the CLE market from other BP members so it's been very helpful to talk to others that have done what we're doing. We plan on making a trip to CLE soon to check out thel properties on my strong potential list. Good luck on your REI goals!!

@Kevin Sobilo Thank you for the great points! The buyer's agent is expecting the seller(me) to pay the agent's fee. I forgot to mention that I'm working with a great realtor who happens to be a friend (only charging me only 1% commission whether it's listed or not). She gave me the recommendation to offer the tenant the option to buy. She recommends listing the property ASAP if it comes down to that to avoid waiting and the tenants have agreed to letting the realtor show the property. I also didn't mention that we presented the option to increase the asking price by $15K to cover the buyer's closing cost and the seller turned down that counteroffer. The buyer would be getting a zero down VA loan on the loan so he would not be coming out of pocket on the deal, which already comes with a paying tenant in the basement.

I'm selling my house-hack ready rental townhouse in the hot RE market in Norther Virginia.  Before my realtor listed it on the market, I presented to the tenants a letter of intent to sell my property to give them a heads up (top 2 levels and private basement apt rented to 2 diff tenants).  Additionally, I presented them with the option to buy the townhouse if they were interested at a fair market price.  One of the long term tenants renting the top level was interested after I let him know that he would be essentially paying close to the same amount if he kept renting the basement to the current tenant.  He reached out to an agent who presented us with a contract offer agreeing to the price but adding a contingency for me to cover the entire $15K closing cost.  I was caught off guard about the tenant adding an agent to the deal. The agent hasn't done anything other than probably convince him to pass the closing cost to the buyer and draw up the offer letter.  Furthermore, it adds to the overall cost of the sale.  I was equally surprised about my tenant asking me to cover the closing cost in the current housing market.  My initial thought is to go forward with the listing and selling of the property at the market price without paying the closing cost.  I'm planning to do a 1031 Exchange so I want to make sure that I can maximize the profit in order to get the best deals.  I've been very fair to my tenant who hasn't seen a rent increase for the past 5 years and the market price is fair as is (fully renovated townhouses are selling for $25K more in the neighborhood).  I also offered to replace an older major kitchen appliance and fix any remaining minor issues.   Should I keep negotiating or go ahead with the listing and selling of my townhouse?  I don't suspect that it will take long to find a buyer but time is of the essence in business...My realtor gave me some ideas but I would like get some input from the BP community on this tricky situation.  What would you do???  Thanks in advance...

I should rephrase my title of my post after rethinking about my requirements... As I mentioned above, I'm keeping an open mind on location, quality over quantity and class in my MF search, mainly because I don't want to do major rehabs and bring up rents slowly etc.  Taylor L and Kevin Romines made some great arguments about the negative aspects of $40K-$50K per door. Hence, my leaning towards Class B with fewer units but I'm still interested in cash flow markets with great opportunities.  Any recommendations for cash flow markets with Class B properties in the 70K per door price range?  Thanks!! 

Hi @Frank Rodrigues, I'm open to all the cash flow markets and I'm leaning towards Class B for my first MF as an out of town investor.  All input, tips and warnings are appreciated!  

Thank you @Taylor L. for the great feedback!  It does make a lot of sense to choose quality over quantity.  The hard part will be finding great deals that can meet the quality and cash flow requirements.

Thank you @Kevin Romines for making a great point about how important it is to analyse a property's deferred maintenance and its cause in order to make an informed decision.

Hi, do you have any recommendations for good cashflow areas where it's possible to find multifamily properties (40-50 units) under $2M?  Please DM or reply to the post.  I'm keeping my options open as an out of town investor.  Thanks in advance! 

@Matt "Roar" Gardner Congrats on your hustle and thanks for sharing your strategy! I'm also currently looking into partnerships to speed up our growth, leverage OPM and work with more experienced investors. Keep it going!!