All Forum Posts by: Daly Vaughn

Just reviewed.  I'd say for the most part that map that James and the Holton-Wise Group put together still looks pretty accurate.  I'd say there are a couple of pockets on the East side that are marked red (D or F) that I'd personally place in the light green (B) or at minimum yellow (C) grade neighborhoods for rental markets.  Thinking the Cedar-Fairmount neighborhood near Case Western/University Circle.  And the area in Shaker Heights north of Van Aken Blvd and west of Lee Rd.

Hi Sawyer,

I'm also looking for the same!  More for long term buy and hold for me.  

Thanks @Nicole Heasley Beitenman, I'm not aware of an easy way to search by in law suite.  Have always scanned more manually.  My family and I had been looking for something like what we found for quite some time, targeting areas like Beachwood, Orange, Moreland Hills, Chagrin Falls, Hudson, etc. due to school systems and quality of life considerations... I agree wouldn't usually qualify as good rental areas. Also, there is very limited inventory with this value add feature grandfathered in but you see them come up every once in a while.  We won't be covering all of our own living expenses.  Never really thought we could with this strategy.  But we will be heavily subsidizing, while getting more privacy and comfort than our prior 2 family up/down home.  If you pursue it, just be careful to read up on the building department's rules to ensure you can figure out what you are and aren't allowed to do.  Maybe if I didn't have fam though, i might consider something more in line with what you're looking for (2-4 units; opp to cashflow positive or break even from tenant units).

I did similar to what you are doing.  Started out with a large bank owned two family property that i used a 203k loan to fix up and lived in upstairs unit for four years in UH.  Even though i didn't really know what i was doing when i got started, the deal ended up being alright for me over the long haul, and allowed me to continue to learn and save up to buy more properties.  

Have definitely done way better deals since that time.  Just the increased cash flow from house hacking makes it very much worth it even if you don't knock it out of the park.  Also, I'd rather sacrifice a bit on cash flow and live somewhere you really like and feel comfortable.  

I work in beachwood as well and since that time, I have saved substantially on income taxes by having moved from UH to Beachwood. I also found a rare SFH with an in law suite with separate entrance which has allowed me to find some creative methods of continuing my house hacking ways. I'd recommend you look for something like that as a happy compromise if you can find it. Beachwood also has easy highway access.

PM for more details on different options with this approach.  Nothing outside of apartment communities zoned MF in beachwood, but there is still a way to rent out a "room" legally in beachwood, and you don't have to do a yearly rental inspection ($500 annually!).  Same for a lot of the other suburbs south of 271.  

Lastly, my 2 cents, most of what i have seen on MLS in places like hudson, solon, or chagrin falls that is zoned MF certainly didn't make a ton of sense on paper to me. But then again, with a house hack, any subsidy to your primary residence can give you increased cash to stash, tax advantages, etc. so that you can more quickly get to your next investment property than if you were just living in a retail SFH.

Best of luck to you! 

Daly

@James Wise

I agree with you that this shouldn't make or break you or you have bigger problems.  I was asking more about your thoughts/perspective on UH vs. other suburbs for investors in greater NEO?  I.e., what is the best and highest use of money.  But thanks for responding i guess? 

@Bob Collett, Unfortunately, i just spoke with Dee from the building department about an unrelated issue and she confirmed that the information in this article is true.  Doubling cost and frequency on this rental permits.  If you've recently had one done, you are grandfathered for the 2 year period, but then you will have to get in line with the new requirement.

@James Wise, I suppose if you are cash flowing well enough to begin with on any prop, you can sustain pulling this unexpected addt'l annual expense off your bottom line numbers without it hurting you too much. I'd counter that there isn't too much, especially out on MLS in current market, that would come close to making sense in University Heights as a rental right now. Especially if you factor in this on top of already thin margins due to crazy high prop taxes. Just my 2 cents. Interested to get your perspective on this town relative to other rental areas in greater NEO.

Thanks for sharing.  What a racket.  They already get you on the property taxes.  Now they doubled the frequency and expense of the permits.  Yikes.  No more shopping UH homes for me.

I really enjoy working with Victor Duqum of VSD Realty.  He owns some investment properties himself, and he is also a licensed contractor, and can help you identify problem areas during walk throughs.  I've bought one house where he has represented me and negotiated a great price on my behalf.  I've also looked at many, and made offers on several through him.  Good luck!

I have really enjoyed working with Victor Duqum of VSD Realty.  He is a great realtor/broker with a lot of hustle and also offers property management services.  He has GC and multifamily owner/operator experience as well and he knows how to evaluate deals from perspective of the investor.  He's also just a good dude.  GL!

@Dan Hooper,Agree with William.  I know a guy that is very active on the West side that was looking for a bird dog a while back.  Not sure if he is still looking, but PM me and I'll shoot you his contact info.