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All Forum Posts by: Dan Keefe

Dan Keefe has started 4 posts and replied 19 times.

Post: Clark Fulton triplex- WHAT AM I MISSING

Dan Keefe
Pro Member
Posted
  • Posts 19
  • Votes 12
Quote from @Ryan Thomson:

@Dan Keefe why not start with a conventional loan. They just changed the rules and allow 5% down on Triplexes again!

Another reason I suggest that is because refinancing in a year will require a lot of cash from you. Appreciation will not be enough in one year for you to refinance that as an investment property at 75-80%LTV. You'll be stuck with the FHA and the PMI until you have 75to80% LTV or bring the cash to make that true. PMI is not that big of a deal for a couple years but if your plan is to refinance in a year that will be difficult or take a lot of cash on you end.

Hey Ryan,

The Head House Hacker himself!!!
I actually did change to a 5% conventional to get under contract for a triplex in Cleveland Heights. That’s great insight about the FHA. I think due to the new 5% loan product I’m going to save the FHA for a single family project as there were too many good deals I was missing out on due to the stricter FHA regulations.
thanks for posting boss!

Post: property managers in Cleveland Heights

Dan Keefe
Pro Member
Posted
  • Posts 19
  • Votes 12

Hey BP!

Looking for a property manager to manage (in my unbiased opinion) the worlds greatest triplex! 
two tenants are month to month and one unit is vacant.

I’m currently under contract and would love any recommendations, suggestions or people to avoid! 

post here or DM me property managers! Thanks!

Post: Clark Fulton triplex- WHAT AM I MISSING

Dan Keefe
Pro Member
Posted
  • Posts 19
  • Votes 12
Quote from @James Wise:
Quote from @Dan Keefe:

Hey everyone,

So my first prospective property is going to be a house hack via a triplex (205k) in the Clark Fulton area as close to Metro Hospital as can be without sitting in the ER waiting room.

With my lenders quote (I'm using FHA loan) on interest rates and mp as well as the BP rent calculators I should be breaking even with 2 of the 3 units. My plan is to refinance after 12 months to a conventional loan and rent out the 3rd unit, possibly as a MTR for greater cash flow d/t proximity to the hospital.

For people in the Cleveland metro, is there any red flags with the Clark Fulton area that are more under the radar? Head aches with triplexes? Any red flags with this plan that more seasoned investors can point out is greatly appreciated. 

Thank you.

 Clark Fulton has got a ton of headaches. It's a low income neighborhood, it's got old housing stock and a ton of crime. That said, I think it's the most promising low income neighborhood in the city of Cleveland. So if you are down to sign up for these headaches this is the place I'd recommend doing it.

Thanks for the insight James. I think for my first property it wouldn’t be a great fit, but in the future I’ll keep Clark-Fulton in mind.

 Just a little update for everyone, I didn’t go with this property. Decided to look towards the East side and am under contract for a triplex in Cleveland heights!
thanks to everyone for their feedback and insight!

Post: Clark Fulton triplex- WHAT AM I MISSING

Dan Keefe
Pro Member
Posted
  • Posts 19
  • Votes 12
Quote from @Vadim F.:
Quote from @Dan Keefe:
Quote from @Vadim F.:

@Dan Keefe Clark-Fulton is hyped up because of MetroHealth so the prices in the area are over inflated due to potential gentrification. $200k will go a lot further in other areas of the Cleveland market. 

Thanks Vadim!
Do you have an C+ area that you would recommend utilizing the house hacking strategy in Cleveland? 

I would look on the east side and look at areas closer to Shaker Heights.  


 Awesome! Thanks Vadim!

Post: Clark Fulton triplex- WHAT AM I MISSING

Dan Keefe
Pro Member
Posted
  • Posts 19
  • Votes 12
Quote from @Vadim F.:

@Dan Keefe Clark-Fulton is hyped up because of MetroHealth so the prices in the area are over inflated due to potential gentrification. $200k will go a lot further in other areas of the Cleveland market. 

Thanks Vadim!
Do you have an C+ area that you would recommend utilizing the house hacking strategy in Cleveland? 

Post: Clark Fulton triplex- WHAT AM I MISSING

Dan Keefe
Pro Member
Posted
  • Posts 19
  • Votes 12
Quote from @Antoine Perry:

I'm a realtor in this market. Clark/Fulton area is economically challenged and not the safest. For the capital ($205k), I would consider other areas. 

Thanks Antoine! What do you think would be a more fair price for that area for a triplex of similar size (2500 sq feet, next to the hospitals)? Thanks for your insight!

Post: Clark Fulton triplex- WHAT AM I MISSING

Dan Keefe
Pro Member
Posted
  • Posts 19
  • Votes 12
Quote from @Robert Ellis:
Quote from @Dan Keefe:
Quote from @Robert Ellis:
Quote from @Dan Keefe:

Hey everyone,

So my first prospective property is going to be a house hack via a triplex (205k) in the Clark Fulton area as close to Metro Hospital as can be without sitting in the ER waiting room.

With my lenders quote (I'm using FHA loan) on interest rates and mp as well as the BP rent calculators I should be breaking even with 2 of the 3 units. My plan is to refinance after 12 months to a conventional loan and rent out the 3rd unit, possibly as a MTR for greater cash flow d/t proximity to the hospital.

For people in the Cleveland metro, is there any red flags with the Clark Fulton area that are more under the radar? Head aches with triplexes? Any red flags with this plan that more seasoned investors can point out is greatly appreciated. 

Thank you.


 What's the age of the property? Was it built as a triplex originally or is it a chopped up or modified over time? are there 3 electric meters, 3 gas meters, etc? if not I'd stay far away from deals like that. In columbus most of what we sell is 2 unit or 4 unit. true triplex are rare and accounts for probably less than 1% of multifamily sales in our market that were truly built as a triplex. 


 Hey Robert,

So I don’t believe it’s a true triplex. It’s an older building (1850 according to Redfin). But was renovated in 1962. As far as the meters go, that’s so the tenants are responsible for their own utilities? Thanks for reaching out.


 As far as deals go that's about as bad as they get. I'd pass just based on age alone unless it's been substantially updated. homes older than 1940 I always recommend looking really hard at framing (it's probably balloon framing), knob and tube wiring, plaster and lath, utility lines including plumbing and water lines what they are made of. my brother bought a "renovated" home in Franklinton brand new a few years ago and his sewer line was never looked at and it busted. home was form 1900. not to mention if it wasn't built as a triplex you are really facing some issues. I'd check with the county auditor to see if it's recognized and if the work was permitted. my own opinion is that you added extra tenants, kitchens, bathrooms, etc to a building that it wasn't intended for and the rest weren't updated for it. for a first time investment it sounds like a no to me. just my 10 years of experience opinion without looking at the deal. worst case make an offer and get a very thorough inspection. make sure they check age of everything and pay the extra for the sewer line to be inspected. I'd be happy to take a look if you get one done. 

That all makes a lot of sense. I wouldn’t have thought to ask for the sewer lines to be checked or that homes converted from duplex to triplex would be ill suited for the increased accommodations. 
thanks Robert! If I find another deal I feel good about it I would be very grateful to get your feedback. Thanks again!

Post: Clark Fulton triplex- WHAT AM I MISSING

Dan Keefe
Pro Member
Posted
  • Posts 19
  • Votes 12
Quote from @Robert Ellis:
Quote from @Dan Keefe:

Hey everyone,

So my first prospective property is going to be a house hack via a triplex (205k) in the Clark Fulton area as close to Metro Hospital as can be without sitting in the ER waiting room.

With my lenders quote (I'm using FHA loan) on interest rates and mp as well as the BP rent calculators I should be breaking even with 2 of the 3 units. My plan is to refinance after 12 months to a conventional loan and rent out the 3rd unit, possibly as a MTR for greater cash flow d/t proximity to the hospital.

For people in the Cleveland metro, is there any red flags with the Clark Fulton area that are more under the radar? Head aches with triplexes? Any red flags with this plan that more seasoned investors can point out is greatly appreciated. 

Thank you.


 What's the age of the property? Was it built as a triplex originally or is it a chopped up or modified over time? are there 3 electric meters, 3 gas meters, etc? if not I'd stay far away from deals like that. In columbus most of what we sell is 2 unit or 4 unit. true triplex are rare and accounts for probably less than 1% of multifamily sales in our market that were truly built as a triplex. 


 Hey Robert,

So I don’t believe it’s a true triplex. It’s an older building (1850 according to Redfin). But was renovated in 1962. As far as the meters go, that’s so the tenants are responsible for their own utilities? Thanks for reaching out.

Post: Clark Fulton triplex- WHAT AM I MISSING

Dan Keefe
Pro Member
Posted
  • Posts 19
  • Votes 12
Quote from @Journey Toole:

@Dan Keefe

Clark Fulton is likely the worst area on the west side of Cleveland. Rating it as a B is crazy right now. It has potential to continue to grow, but right now, no way. More like a C-, D+. Still lots of crime there.

Definitely have that MTR potential being so close and with the Metro Health expanding on their 1 Billion project. Prices sounds pretty high for the area, unless all there unites are fully renovated, high end.

I still think it can be a good buy! Nothing wrong with it, just run your numbers, if you’re self managing, just screen those tenants as best you can. Your tenant base is not the best there. I’m an agent here, feel free to reach out!

Appreciate the insight! Thank you! 

Post: Clark Fulton triplex- WHAT AM I MISSING

Dan Keefe
Pro Member
Posted
  • Posts 19
  • Votes 12
Quote from @Bob Stevens:
Quote from @Dan Keefe:

Hey everyone,

So my first prospective property is going to be a house hack via a triplex (205k) in the Clark Fulton area as close to Metro Hospital as can be without sitting in the ER waiting room.

With my lenders quote (I'm using FHA loan) on interest rates and mp as well as the BP rent calculators I should be breaking even with 2 of the 3 units. My plan is to refinance after 12 months to a conventional loan and rent out the 3rd unit, possibly as a MTR for greater cash flow d/t proximity to the hospital.

For people in the Cleveland metro, is there any red flags with the Clark Fulton area that are more under the radar? Head aches with triplexes? Any red flags with this plan that more seasoned investors can point out is greatly appreciated. 

Thank you.

 Nothing special about that area, and 200k is INSANE, you can do much better in other areas. MH. GH. WH. Lee Harvard, about 70k less U hate triplex, UNLESS it a big property, 3k sq ft,ish. Too many people one driveway. Also do not even think about doing this without PM in place. 

All the best, 

Thanks Bob! Yea the no driveway gave me pause. My long term goal with property would to make it MTR for travel nurses, etc and property managers would certainly be involved. Do you know a property manager or two that you like that have experience with MTR? Thanks again