All Forum Posts by: Chris Collins

@Patsy Waldron

Welcome to Cleveland Patsy! I highly recommend listening to the BP podcasts. They talk about creative Financing a lot. @Brandon Turner also has a book about buying with low and no money down. I have not read it yet but it is on my list!

Good luck! 

@Zachary Scott

I buy that for sure. That's essentially the third scenario i described above. The condenser being clogged reduces efficiency. It also causes the compressor to shut off via internal overload. Good luck! Let me know if you have any other questions.

@Zachary Scott

You should be able to get a 20-25 degree drop from the outside temperature if the unit is working properly.  Even if it is 100 outside, you should be able to achieve 75-80 if the unit was working properly.

@Zachary Scott I'm an HVAC contractor out of Cleveland. 

Underperforming is an unacceptable diagnosis from a contractor.

There are many reasons why the unit can't keep up on hot days. The three most common are below:

If the equipment is not sized properly it may not be able to keep up. A solid contractor should be able to run a load calculation to determine a proper BTUh load for the space. 

Second, If the unit has performed properly in the past, I would venture to say it's low on freon. If this is the case, I'd bet the service contractor is adding more freon without locating a leak. Next time they come out have them do a leak repair before they add freon.

It's an EPA violation to continue adding freon when you know there is a leak.

Finally, the compressor may overheat on hot days due to clogged condense coils. It will open on internal overload and shut itself down. If this is the case coils need to be cleaned.

Let me know if you have any more specifics and I could provide more specific advice.

@Isaac Taylor I am a new investor, but am from Cleveland so I have knowledge of the area.  

There are some great areas for cash flow, however, I would be very careful regarding where you look. There are certain areas that need to be evaluated street by street, especially the areas right around Cleveland.

Most investors seem to prefer the west side.  Ohio City and Tremont are hot areas.  Parma, Garfield Heights and Old Brooklyn are areas that have opportunities as well.

I am from the east side of Cleveland (15 miles from the city), so I mainly stick to the east side areas that i know very well.  Euclid, Eastlake, Willowick, Wickliffe, South Euclid are all cities that might fit your criteria.

Feel free to let me know if you have more specific questions.

@Tom Ott Thanks Tom! Go Cavs! What a great time to be a Clevelander.

@Justin Howe Thanks for the congrats Justin! Major life change for my wife and me but so worth it! Youre right about the LOC if a deal makes sense. At this point it is a combination of knowing if a deal makes sense and getting over being very conservative with the line of credit.

@Mark Nolan Thanks Mark!

@Jeff Brower Thanks Jeff!  I will certainly let you know if anything comes up, please do the same if you need anything from me.  My business is in Willoughby, and my properties are in Euclid, so i know your area very well.

@Ryan Arth I actually have a personal line of credit that is tied to other assets, not my home.  I am nervous to use it, to be honest, which is one of the reasons I am on here, to gain knowledge to overcome fear.  It is my goal to purchase enough rental properties that my cash flow could cover future rental purchases and I wouldnt have to use a line of credit.  However, the line is tempting for starting faster though.

@Nathan

@Nathan Astrup Thanks Nathan!  

@Ryan Arth Thanks for the welcome Ryan.  Using profits from HVAC company to buy real estate is my main source of funding for down payments.  My goal is to grow the portfolio without putting myself in a position to take from my savings.  One possibility I have been researching is using a personal line of credit to purchase a property, rehab, rent and pull out the equity.  Is it "worth it" to use a line of credit this way?  Or am I better off being more conservative and waiting until I have cash for down payments?

Hello Bigger Pockets Community.

My name is Chris Collins, from the Cleveland, Ohio area.  I came across bigger pockets while browsing around trying to find answers about getting started with rental properties.

I am currently closing on a 3 property (2 sfr, 1 duplex) deal in an east side suburb of Cleveland; so I am a complete newbie.

My day job- I am currently in the process of taking over our family Heating and Air Conditioning business.  I have officially been with the company for 5 years after graduating from college, however, I worked many summers through college and high school.  We do 90% commercial/industrial work, but I am more than happy to answer any residential HVAC questions.

My goal- Purchase enough rental properties to provide a stream of cash flow for financial freedom. My goal is to oversee both my rental and HVAC businesses, but have them run themselves on a day to day basis. I work a lot of hours, and would like to have the freedom to spend more time with my wife and son (born June 2016) as well as travel more frequently.

I look forward to being part of the BP community!

Thank you,

Chris