All Forum Posts by: Chad McLeod

It's pretty much been mentioned already, but IMO property management is BY FAR the biggest thing you need to get right.  You can pick a great market but if the PM is bad you will almost certainly lose money.  Conversely, you could pick a market nobody else invests in but if you have a great PM you will probably do fine.  

Vacancies are an absolute killer.  You lose money when the house is vacant, you have to pay the PM to make the property rent-ready, and then you have to pay them a portion of first month's rent when they find a tenant.  In my experience that ends up being about 2-3 months of rent.  And honestly, that's where PMs make their money.  There isn't any money in them renewing leases year after year.

Aside from that, definitely get referrals here on BP but make sure they are from people who actually do business with the person they are referring.  Then talk to the person, ask all the questions that are important to you, and make your decision from there.  If they don't return calls/emails or seem put out that you are vetting them, cross them off the list and on to the next.  

I invest out-of-state and have never been to either of the cities I invest in.  I understand people wanting to go out and see the area they are going to invest in, but in this day and age I don't think it's mandatory.  But then again I probably do 5x the research/vetting that most people do, so I'm probably just an oddball in that respect.

Thanks for the info everyone.  I appreciate it!

@Account Closed thanks for the info!  

I definitely noticed that Cleveland Heights taxes seemed to be higher than some of the other areas, but it's encouraging to hear you were able to make it work.  I'm excited to make a purchase but on the other hand I'm trying to be patient and make sure a find good deal.

Thanks again!

Hey all,

I've been looking at 2-4 unit properties in Cleveland recently and I was hoping some of the local experts might be able to help out with a few questions:

1)  Almost everything I see online are duplexes or apartment buildings.  Are there any areas where tri and 4-plexes are more common?  I' would prefer to stay in B areas, if possible.

2) The areas I've been researching the most are Cleveland Heights, South Euclid, Lakewood and Parma.  Are there other B areas I could/should be looking at?

3) I'm not really looking for "cheap" properties, as I want to be in a good area with quality tenants, so if we're talking about duplexes I would probably be topping out at $150 - $175 or so.  This would be for properties that are in good shape and need minimal, if any, repairs.  Is this a realistic price range?

4) Lastly, can someone tell me why the property taxes are so high out there??  I feel like everytime I think I find a deal I look at the property taxes and they blow it up.  I live just outside of Seattle and a lot of the properties in Cleveland have higher taxes than we do!

Thanks in advance for your thoughts.  I appreciate it!

Great news!   I knew a R/T Refi would be a no-go with a higher rate, but couldn't remember on the CO.  Thanks, Arthur!

I know this is a dumb question, but are you even allowed to do a CO Refi if you would end up with a HIGHER rate than your current one?  I have roughly $300K in equity on my primary but the rate is 3.625%.  I'm assuming any CO I got would have a higher rate than that.  Thanks in advance!

Sorry, I was responding to Brandi's post.  I probably should have made that more clear!

Somebody can correct me if I'm wrong, but as far as I know you can only have one owner-occupied (primary residence) property.  All other homes would either be designated non-owner occupied (investment) or vacation home.

I just bought a SFR in Parma and the rate was 4.875%. I'm not sure if there would be adds for yours due to it being a triplex, but it couldn't hurt to ask.

I don't usually give out recs because, quite frankly, I rarely meet people in the real estate/mortgage industry who are actually good at their jobs.  But this LO is legit.  Let me know if you would like her contact info and I will PM you. 

I agree with Caleb on numerous fronts.  For starters, I would be very careful about using recommendations you get on BP.  I'm not saying some aren't great, but I've seen quite a few people give recs of people they've never even worked with.  Don't get me wrong, any and all recs should be vetted to the nth degree, but throwing out a name of somebody you haven't even worked with is incredibly irresponsible, IMO.  Maybe they think they're being helpful, but it's actually quite the opposite.

I work in data analysis/research for a living, so I'm pretty anal about this stuff. I tend to dig pretty deep not just on companies, but the individuals behind those companies.  A few years ago I saw someone recommended on here by a few people, most who had never worked with them, and a quick search revealed that they had spent time in prison for dealing drugs.  Now maybe they are reformed and I honestly hope they are, but that's not someone I could ever trust with my money.

Caleb is also right that there will be issues, but that's true even if you invest locally.  Do tons of research, get referrals, check BBB ratings, check sites like ripoffreport.com, etc.  I just closed on my 4th OOS property and am under contract on #5.  I've had some issues for sure, but all pretty standard stuff.  Maybe I've been lucky in some ways, but I also spent an insane amount of time vetting people until I found the right ones.

Good luck!