All Forum Posts by: Cameron Green

Great job on running the numbers! I reviewed your analysis, and it looks like the main issue is with the points calculation. The total loan fees ($6,799.91) you entered as points should likely be divided by the loan amount to get the actual points (which are typically 1-3% of the loan). Correcting this should adjust the profit at sale.

Additionally, your property taxes seem quite low. It might be worth double-checking that estimate to ensure it's accurate for the area.

Other than that, your costs and estimates look solid, but I'd recommend re-running the numbers with these tweaks. Also, consider factoring in a conservative appreciation rate and double-checking your repair estimates.

Hope this helps!

This is a tough one. I would say look through your lease which you've probably already done. If your lease doesn't explicitly address pest control responsibilities, it’s worth reviewing and considering adding a pest clause in the future to prevent disputes by adding every single pest. Since you've already covered three treatments, you could offer a good-faith rent concession (e.g., a one-time reduction) without admitting fault, which might maintain a positive relationship with the tenants while protecting your interests. If the tenants have a pet, like a dog, it’s worth discussing, as pets are a common source of fleas. Having an open conversation about any possible contributing factors, including outdoor exposure, could help resolve the situation.

Hey! Just wanted to share that deck projects can be rough and prices can vary widely, but the labor costs can be quite high. I recommend getting around 5-8 quotes to see how each contractor would approach the job. You really need to put in the time to solve this problem effectively. I’ve worked with a few contractors on deck projects who might be able to come out to Lorain, so let me know if you need any recommendations or assistance!

I recommend using RentPrep—it's a great service for running credit and background checks, and, I believe it was bought by Stessa. Always have the tenants pay for the screening. If they're serious about your property, they will. Make sure to thoroughly review the reports, including eviction history and criminal records, to protect your investment. Choosing the right tenant is crucial, so take your time with the vetting process. This step can save you a lot of hassle in the long run. Hope this helps!

Hey, welcome to the real estate world!

You sound young, and honestly, this is one of the best ideas you could go with. If most of us could go back, we’d house hack and buy a rental every 1-2 years without hesitation. You’re setting yourself up for long-term financial growth, and teaming up with your friends is a smart way to ease into it while covering your mortgage.

A few tips to keep in mind:

• Location is key. Make sure you’re buying in solid cities or neighborhoods that will continue to attract renters. In Cuyahoga County, areas like Lakewood, Ohio City, Tremont, or even parts of Cleveland Heights can be great spots with strong rental demand.
• Think long-term. You’re living there now, but consider whether the house will still make a good rental when you move out. Look at the potential rental income and whether it will cover your costs, including property taxes and maintenance.
• Taxes. Pay attention to property taxes, as they can vary a lot from city to city within Cuyahoga County. Higher taxes can eat into your profit, so do your homework upfront.
• Financing options. You can take advantage of first-time homebuyer programs or low down payment options since you’ll be living in the property.
• Exit strategy. Always have a plan for when you move out. Will the home rent well, or will you need to make improvements first? And keep an eye on what’s happening in the market, so you’re prepared when the time comes.

House hacking is a fantastic way to start building wealth. Just keep adding properties over time, and before you know it, you’ll have a solid portfolio!

Best of luck on your journey, and feel free to reach out if you ever have any more questions!

As a realtor and investor in Cleveland with a mid-term rental (MTR), I’ve gained some key insights from managing my own MTR, and I’d be happy to share my thoughts. One big takeaway is that MTRs function more like short-term rentals (STRs) than traditional long-term rentals. You’ll need to manage the property more actively, stay on top of furnishing and maintenance, and market it effectively to your target audience.

In Cleveland, most tenants looking for mid-term rentals prefer a price point below $2,200 per month. It’s essential to make your property appealing to traveling professionals, such as nurses or corporate employees. I positioned mine near Case Western Reserve University and the hospital system, and that has been a major advantage. You can also focus on trendy areas like Ohio City, Tremont, or Detroit-Shoreway, where people want to be.

When it comes to the property itself, you don’t need anything huge, and you don’t need to go overboard with the layout or expensive design. In-unit laundry is a must-have, and high-speed internet is essential for your guests, especially those staying for work purposes. Offering these amenities can make a significant difference in your property’s desirability.

If you're investing out of state, I'd suggest working with a good property management company or a trusted local contact to keep everything running smoothly. It’s also important to be mindful of local regulations and how they impact MTRs, as Cleveland’s neighborhoods can have different rental rules and demand.

Let me know if you need any more specific details about Cleveland’s MTR market!

Aim is to stay organized with the property and ensure all documentation is properly managed. Have you successfully registered the property? Do you have both physical and electronic copies of all the necessary paperwork? It’s important to confirm that everything has been correctly transferred; don't rely solely on verbal confirmations. You're on the right path—don't overthink it. As long as you follow protocol and get the property lead certified (which is particularly important in Cleveland), you'll be in good shape. Always prioritize doing the right thing and confirm details with people and through official channels. I hope this advice helps, and feel free to reach out if you need any assistance or contacts.

Yes, to convert a multi-member LLC to a single-member LLC, Form 8832 is used to elect how the LLC will be taxed. If you want to be taxed as a disregarded entity (the default for single-member LLCs), filing this form informs the IRS of the change. In addition, you'll want to check with your state, as you might need to update your LLC's operating agreement and notify the state business registry of the ownership change.

Even if you haven't done any business this year through the LLC, you may still need to file a zero return for this year depending on your state requirements and whether your LLC has any outstanding tax obligations. Also, if your multi-member LLC filed as a partnership in previous years, you may need to file a final partnership return.

It’s always a good idea to consult a tax professional or attorney to make sure you're following the correct steps for both federal and state requirements.

Hi Hadar,

In your case, since you're new to real estate investing and want to focus on one property at a time, I would recommend purchasing the property outright with the $120,000 you already have. Here’s why:

1. No High Interest: Hard money loans come with high interest rates (around 11%), which could eat into your profits as a new investor. Since you already have the cash, you can avoid that added cost.
2. Lower Risk: By purchasing outright, you're minimizing your risk and giving yourself time to learn the process without the pressure of loan payments and short-term financing deadlines.
3. Better Refinancing Terms: After you purchase and stabilize the property, you can refinance it with a traditional lender at a lower rate and pull cash out for your next investment.

This approach keeps things simple and allows you to focus on learning without the complications of high-interest debt.

Let me know if you need more advice!