All Forum Posts by: Timothy Murphy III

@Katie Haney

You can acquire with financing. I've got a client under contract right now for an occupied duplex in a B caliber suburb in that price range. She's using conventional financing to buy. Cash is obviously better because it's quicker and sometimes it can get you a little better price, but plenty of buyers in this market use conventional financing.

@Ryan Garza Welcome to BP.

@Shawn Ackerman

It's hard to say for certain, though I do think of the midwest cities as cash flow markets primarily with any appreciation being a bonus.

@Katie Haney

In the Cleveland, Ohio area you can find similar properties. You might be more in the $70-$80k range for a B caliber neighborhood duplex, but you should be getting at least $600/unit and probably closer to $800/unit.

I'd base my offer around the property's income combined with my demanded rate of return, as well as the comparable sales in the area. Keep in mind that everything can be negotiable and flexible. If you're getting great terms like significant owner financing, you may not need to get quite as good a price to make the deal work.

@Brian V.

If the numbers don't work in your backyard, you either need to change your strategy or look into different markets. A lot of buy and hold investors from California look into Cleveland or other midwest cities where the numbers work out much better.

@Kurt Phillips

Welcome to BP.

@Sarah Karakaian

Check the disclosure form and see what it says. If there's a reference to water intrusion, mold, etc. then that's probably enough under Ohio law to put you on notice that you need to investigate further. If nothing of the sort was disclosed, and you can prove that the seller had knowledge of these issues, you may have a case for fraud against the seller. Hopefully it doesn't come to that, and you can find a more amicable resolution...

@Pat Desenberg Welcome to BP.

@Ryan Evans

PM me that contact also, if you don't mind.