All Forum Posts by: Dena Zeman

@Giancarlo Valverde Barriga

First off, if you are coming out of college and are now working in your field of study, your time at school counts towards your employment history.  You do not need to show 2 years of employment history to qualify for conventional financing.  I help new grads all the time and get them approved without much hassle.  You will need to show transcripts to prove time in school and show the last month of paystubs along with an offer letter for your employment.  

There is only one lender I know of whom is lending down to $50k on DSCR, but they are a wholesale lender. You cannot go to them directly. It must be through a mortgage broker.

Either conventional or DSCR, don't look for prime rates with a loan amount so low. The lenders will penalize you for such a low loan amount.

Cheers!

I have a great lender that can do DSCR loans or conventional loans anywhere. Reach out when ready!

Hello, I recently closed on my first investment property in Cleveland. I currently live in Los Angeles. I would like to speak with a local Cleveland RE agent & property manager as I have some questions on the rents and getting it rented out by October 1st at the latest. In addition, I have some questions regarding the price I paid & value of this property.  Please message me if you are familiar with the Cleveland area and I can give you an address and hopefully I am able to get some info & questions answered.

Thank you, 

Hi Joshua, may i contact you to talk about the Cleveland market? I just purchased a SFR 3 bed-1 bath and I would love to talk to you about it. In addition, i would like to discuss other opportunities and options. I am in CA so i am an out of state investor. Thank you

@Owen Maiden
I would recommend being in areas on the West Side of Cleveland like West Blvd, Cudell, Old Brooklyn, Clark Fulton, Edgewater, Jefferson, and Brooklyn Centre. The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of Sale inspection which is really annoying.

Cleveland, Ohio is a great market to focus on for cash flow and specific pockets have gone up 2x and upwards of 4x in the last 5-10 years even!

Examples:

44109 (median home price went from roughly 50k to 125k in 8 years)

https://www.zillow.com/home-values/77009/cleveland-oh-44109/

44102 (median home price went from roughly 30k to 120k in 8 years)

https://www.zillow.com/home-values/77002/cleveland-oh-44102/

44106 (median home price went from roughly 100k to 200k in 8 years)

https://www.zillow.com/home-values/77006/cleveland-oh-44106/

It has the highest rents on average in all of Ohio for major cities and the median income is not even in the top 3. That creates a really nice price / rent ratio which is favorable for investors looking for cash flow. The median home price is also very low nationwide which creates a low barrier to entry. You can get solid cash-flowing single families in the 90-120k price range and duplexes in the 130-180k price range. There are cheaper one’s in D/F areas but I would be careful as those can create a laundry list of additional issues. In 2022 the rents increased 12.1% year over year which was the 3rd highest in the entire country per https://www.axios.com/local/cleveland/2023/02/14/cleveland-rent-prices.

Here are pockets I focus on for cash flow:

West side - West boulevard, Cudell, Clark-Fulton, Jefferson, Bellaire-Puritas, Old Brooklyn

East side - Fairfax, Buckeye-Shaker (the north side), Waterloo Arts District, Garfield Heights, Maple Heights, Newburgh Heights, Lee-Miles (the north side), Bedford

Here are the areas that I focus on for appreciation:

West side - Lakewood, Edgewater, Old Brooklyn, Ohio City, Tremont (above 490)

East side - Buckeye-Shaker (the north side), Waterloo Arts District, Fairfax

I have a graded neighborhood map of these areas as well if you would like to check it out.

Cleveland, Ohio is a great market to focus on for cash flow and specific pockets have gone up 2x and upwards of 4x in the last 5-10 years even!

Examples:

44109 (median home price went from roughly 50k to 125k in 8 years)

https://www.zillow.com/home-values/77009/cleveland-oh-44109/

44102 (median home price went from roughly 30k to 120k in 8 years)

https://www.zillow.com/home-values/77002/cleveland-oh-44102/

44106 (median home price went from roughly 100k to 200k in 8 years)

https://www.zillow.com/home-values/77006/cleveland-oh-44106/

It has the highest rents on average in all of Ohio for major cities and the median income is not even in the top 3. That creates a really nice price / rent ratio which is favorable for investors looking for cash flow. The median home price is also very low nationwide which creates a low barrier to entry. You can get solid cash-flowing single families in the 90-120k price range and duplexes in the 130-180k price range. There are cheaper one’s in D/F areas but I would be careful as those can create a laundry list of additional issues. In 2022 the rents increased 12.1% year over year which was the 3rd highest in the entire country per https://www.axios.com/local/cleveland/2023/02/14/cleveland-rent-prices.

Here are pockets I focus on for cash flow:

West side - West boulevard, Cudell, Clark-Fulton, Jefferson, Bellaire-Puritas, Old Brooklyn

East side - Fairfax, Buckeye-Shaker (the north side), Waterloo Arts District, Garfield Heights, Maple Heights, Newburgh Heights, Lee-Miles (the north side), Bedford

Here are the areas that I focus on for appreciation:

West side - Lakewood, Edgewater, Old Brooklyn, Ohio City, Tremont (above 490)

East side - Buckeye-Shaker (the north side), Waterloo Arts District, Fairfax

*I have a graded neighborhood map of these areas as well if you would like to check it out.

@Ronald Fontenot Jr Like Doug stated, DSCR loans come in several forms. The most common I see investors elect is a 30 year fixed payment option. To qualify for a DSCR loan you'll need to have those vacancies filled and thats where a few steps come into play(more on that below). Factors like your credit profile, experience and cash flow will effect the lending decision and terms offered.

The process is pretty straightforward when working with a property not yet stabilized.  As a mortgage broker I advise my clients to do the following:

1. Acquire the property with a short term bridge/hard money loan, i.e. 12 month interest only, no pre-payment penalty/no income verification/no appraisal

2. Fill the vacant units and get signed lease agreements.  This is referred to as stabilizing the property.  

3. While stabilizing the property you'll wait out a 3-4 month ownership seasoning period depending on the loan program you choose. Requirements differ from lender to lender.  These are current guidelines with two of the more competitive lenders in the space.  

4. Stabilized and seasoned. Ready for refinance - DSCR loan

Good luck, let me know if you have any questions.