All Forum Posts by: Ben Halabi

Hello Everyone! I’m looking into investing in cleveland Ohio. Looking at some duplexes down there, any advise, suggestions, deals etc would be great.

Hello All,

  I am a relatively new Boston based real estate investor.  I currently own two properties in Boston but the local market is very expensive and I am looking to increase my portfolio's cash flow.  My thought is that I may have to invest outside the New England region, as I am also interested in investing in mid to upper grade neighborhoods.  Does anyone have any advice on areas I should consider/look into?  I am grateful for any advice provided!  Thank you.

-Ryan

Which of these markets provide best yields in medium-low risk neighborhoods?

Is East & west Cleveland Ohio good places to invest Into rental properties ? ( resident of nyc).

Looking to get going with the investment game.

I was originally looking in so cal but the more and more I look for the deals they’re becoming harder to come across.

I have a STR here and would like to diversify with a multi unit/duplex/apt unit but haven't found anything besides in central CA.

Been looking at Ohio, WI, Texas, Florida and a few. Really would love some additional information/insight on the best markets for So cal investors to get going (in terms of cash flow/facilitation/best COC returns). If any of you have recently invested out of state with a turnkey company or without I'd love to hear your experiences and advice.

Also I’d be open to having a partner/investment group. Have about 75k cash to invest and want the most cash flow possible. 

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $368,000

This is the first investment property that I just closed today! It is a 5 unit apartment complex comprised of 4: 1 bedroom 1 bath and one 2 bedrooms 1.5 bath apartment. I purchased with 3 tenants in place all paying significantly under rental values ($300-500 lower) but after renovations, I plan to increase rent to the market value and will have an estimated cash flow of $1400 a month.

What made you interested in investing in this type of deal?

I was interested in the property because it needs a lot of work, but the cash flow after was too hard to turn down. The location is close to a military base so tenants have a steady job during this crisis which made it even more appealing.

How did you find this deal and how did you negotiate it?

MLS. It was managed by a property management company that took a very hands-off approach and let the work being done be subpar and with the owners not being local they did not have a clue the condition the property was in. I saw the potential and brought up the poor work needing to be done (mainly electrical) and the estimates I received for the work along with a low ball offer out there of $115,000 lower than asking price and they accepted.

How did you finance this deal?

FHA loan, we intend to live in the 2br/1ba apartment.

How did you add value to the deal?

We are currently renovating the apartments which will allow us to increase rent by up to $500 per unit.

What was the outcome?

We just purchased the deal so TBD so stay tuned!!

Investment Info:

Other buy & hold investment in Akron.

Purchase price: $28,000
Cash invested: $28,000

Duplex that we picked up and invested an additional $10,000 into to get in rentable shape. Filled within 2 months and have had a total of 4 different tenants in place.
We rent each side out for $650 a piece and had an average of $450 in expenses for both sides. We clear about $12,000 a year on it. Made our money back after the second year and are in profit mode since then.

What made you interested in investing in this type of deal?

Cash Flow

How did you find this deal and how did you negotiate it?

With my realtor that was helping me sell a property we picked up at a tax deed sale in Summit County Ohio

How did you finance this deal?

Equity partner. He fronted the money and we split profits 50/50

How did you add value to the deal?

We did some immediate capital improvements and immediately fixed small maintenance issues that raised the value of the rents from $450 a unit when we bought it to $650 a month currently.

What was the outcome?

Cash positive and continue to profit off of this Duplex.

Lessons learned? Challenges?

A good deal doesn't have to cost a lot or be in an "great" area. All you need is quality tenants and a great management company that you trust to make good money anywhere.

Is there anyone who is doing long distance investing? investing out of there country or state? Cause I want to know what measures do I have to take before investing in another country or state.

I live in San Francisco and wanting to invest in a multi family home in another state since everything in California is too expensive. What are some good states to look into? Also what is the best tips for someone starting in real estate investing? 

I own a property in Cleveland, My first experience with a Management company there was with Monument, and was honestly terrible.
My second one is not great, the guys are milking us with non necessary fixings in a unit the tenant is not paying and we have been having issues for a long time. we are never able to make a penny because they invoice some repairs. We are Waiting all this Covid not eviction time to pass to start the eviction process in this unit, but also I completely lost my trust in these people, and can not work with people I distrust.
Does any investor have a good experience with a serious honest management company in Cleveland?
I read some comparison giving IIP or allstar good ratings, but when I see the google reviews are not that great either.