All Forum Posts by: Dan Sarao

Gino, I am not a coach or anything like that, but it sounds like you have put some thought, research and time into this.  Again, not a coach, but you need to make a decision whether you want to TAKE ACTION or you don't want to take action at this point.  The only way to get going with anything in life is to do enough research to feel confident (not enough to paralyze yourself) and jump in with 100% commitment knowing that you won't have 100% of the information and knowing that things might not go 100% perfect.  Taking action is the only way to break your fear.  Taking action is the only way to learn and improve.  You are either going to do it and TAKE THAT ACTION, or you are going to continue to sit and analyze for the foreseeable future with no progress being made.  

If you are not comfortable enough to jump in by yourself for your first investment then find a partner who is experienced that you can learn from.  

@Charlene Isoh - I have worked with Andrew Ziebro from Freeland in the past. He is very easy to worK with, accommodating and helpful.  From my experience he has gone the extra mile to help us out. 

Welcome Ken.  This is a great place to network and learn.  Soak it up. 

Johnson if you are not familiar with the specific neighborhoods of Cleveland I would highly suggest you talk to someone who is.  Depending on where the property is located specifically and what your strategy is...

Single family $300. Multi-family (under 10 units) $400-500.  Ive had 6 units inspected for $400 from a solid inspector.  Let me know if you need a reference. 

If I were to go back to my first investment property my biggest regret is buying off the MLS, even at a good price. Put the time and effort in to find off market deals, whether thats you doing it yourself or finding a solid wholesaler you can buy from. The economics, returns and equity you will get from it are so much better.

In terms of the markets I am active with the biggest thing I can say is that it was critical to know the neighborhoods I was buying in, on a street by street basis and understand the risks and returns of the areas fully. 

Also, we have some solid residential and commercial lenders, and even hard money lenders we can refer if you need some. 

Joseph, I am assuming you are buying with conventional lending? If so then the numbers Eric shows above are a good estimate.  If you are buying cash it can be different depending on what you chose for insurance, if you are paying all the closing costs, etc.  Things change when mortgage underwriting isn’t involved.

Since you didn’t mention you are buying in cash I would say Eric’s estimate is a good Starting point.  Even though it will take you a few phone conversations I would recommend reaching out to lenders and insurance companies to get actual costs if you want a solid number. 

You might be able to get AN ESTIMATE from looking at gosection8.com for similar type properties in the same neighborhood, although the price variations everyone is bringing up might make that hard.  It would be recommended to talk to the CMHA to get a data point from them as well as have a conversation with your PM if they have section 8 rental experience in the areas you are interested in.  One of my section 8 investments is actually well above market rent, and was like that when I acquired it.  Even my PM was shocked at how high the rate was.  I guess to the comments from @James Wise its going to be a bit of a crapshoot, but you should have enough sources to get a fairly good idea (gosection8.com, CMHA rep, your PM or other PMs in the area). 

Definitely agree with Jared on this one.  Shaker Heights is very desirable, and a very nice area.  Buckeye Shaker, not so much.  If you are looking for higher rent, much better tenants and much higher taxes go with Shaker Heights.  If you are looking for better returns you would be better off in Buckeye, but make sure you investigate it first.