All Forum Posts by: Chris Taylor

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Cleveland.

Purchase price: $70,000
Cash invested: $22,000

Duplex in Old Brooklyn (Cleveland, OH). It was an off-market deal. Both units are 2 bed 1 bath and about 1,000 SF each.
Current Rental Income $1075
P&I, Tax, Ins. $525
Water/Sewer $150
Vacancy $55
CapEx $55
Maintenance $55
Management $105

Total Expense $945
Current Cash Flow $130
Cash flow is lower than I would like it to be but I also think I could get $650 per unit once I have turnover. Assuming I can do that it would increase the cash flow to $355. I am also self managing.

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

Reasonable price in a good rental market. I have been a BP member for about 18 months now and happy to say I landed my first deal.

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

A co-worker introduced me to one of his friends looking to sell his rental properties and retire.

How did you finance this deal?

HELOC and investment property loan.

How did you add value to the deal?

No value add at this point. Units are currently occupied.

What was the outcome?

Currently occupied and cash flowing.

Lessons learned? Challenges?

TBD

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did not make this purchase through Holton Wise but I would recommend them for any of your investment property needs. The lender I used on this deal was actually a referral from their website.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Cleveland.

Purchase price: $70,000
Cash invested: $22,000

Duplex in Old Brooklyn (Cleveland, OH). It was an off-market deal. Both units are 2 bed 1 bath and about 1,000 SF each.

Current Rental Income $1075

P&I, Tax, Ins. $525
Water/Sewer $150
Vacancy $55
CapEx $55
Maintenance $55
Management $105

Total Expense $945
Current Cash Flow $130

Cash flow is lower than I would like it to be but I also think I could get $650 per unit once I have turnover. Assuming I can do that it would increase the cash flow to $355. I am also self managing.

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

Reasonable price in a good rental market. I have been a BP member for about 18 months now and happy to say I landed my first deal.

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

A co-worker introduced me to one of his friends looking to sell his rental properties and retire.

How did you finance this deal?

HELOC and investment property loan.

How did you add value to the deal?

No value add at this point. Units are currently occupied.

What was the outcome?

Currently occupied and cash flowing.

Lessons learned? Challenges?

TBD

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did not make this purchase through Holton Wise but I would recommend them for any of your investment property needs. The lender I used on this deal was actually a referral from their website.

Sounds good.  Just let me know what time you decide on once you get some more responses.

Thanks!

@David Bardwell

Good to see your post.  Is this a new meet-up you started?  Also I don't know if you had it set up when we met for lunch but I am liking the new web page.  My wife works Friday nights but if I can get a babysitter for our kids I will be there!

@Travis Biziorek does your lender do business in Ohio?  If so I would like to connect and get their contact information if you don't mind.

 @Benjamin Piecenski is the $25K threshold for a standard 30 year conforming mortgage?

Nicholas is a solid C class neighborhood. I have some friends who just finished a rehab on Bruce Ave. just a few blocks over. $20K purchase. Appraised for $40K before they touched it. After $25K in rehab they are looking at an ARV of $70K to $80K. I spent 3 or 4 years over there managing a couple roadway projects between Babbitt, 222nd, and the Nicholas area. I have been actively looking to buy in that area over the last few months.

I'm not that familiar with Zeman but just passing through that area it seems to be very similar to Nicholas.  This is just my opinion but it seems like the further east or north you go in Euclid the better the properties.  

 I hear what you are saying but there isn't much inventory north of Lakeshore....

@James Wise

I will admit I haven't read all the comments on this thread so this may have been covered. What if you use a HELOC and/or other type of low interest rate credit line? Technically that is OPM and you're using leverage. But as long as you can afford the payment with or without a tenant in place then it seems fairly low risk. You also have the possibility of a cash out refi after you've rented for a year and assuming you forced some equity through renovations. I agree that investing with no money seems to be used as marketing ploy because there are people who take that literally. If you have no cash then you better have damn good credit, fantastic marketing skills, a good network and probably a combination of all three. I think no money investing is overhyped but mostly because the people that are being marketed to don't really understand what that means and what the risks are of hard money or private money.

@Ross Yeager

Maybe that’s an angle that would increase leads. I’m filtering a specific price range that’s perhaps too low. I’d guess the majority of real estate on Craigslist isn’t posted by licensed agents. And since they are probably not working for a client they could take their time and set the price high expecting to negotiate.