All Forum Posts by: Denis Woosley

Just look at the numbers and if they don't work then walk away. $2k lost is nothing in the grand scheme of real estate investing. You didn't list any numbers but for example if you are planning on buying the property at $400k, assuming these problems did not exist, now that property is worth $370k because it needs $30k in rehab. If the seller will not remedy the issues or lower the asking price then the deal no longer makes sense. If the deal still makes sense with those extra rehab costs then you can proceed. 

Also the seller should not be getting any of your money from inspections, that is just money paid to the third party inspector. You should have put a minimal earnest money deposit that can be refunded if you are within the inspection contingency period.

What kind of properties are you looking at? REITs are not going to be competing with local investors on MLS listed SFH and small MFH. They look at portfolios and large multi family properties. Large companies may have a representative at local auctions in certain markets.

You will never be able to time the market. Maybe the market will just keep going up, maybe not. You need to, determine your risk tolerance, set aside cash you have to invest and then start looking and see if any properties fit your criteria. Real estate investing always has some inherent risk but there are ways in hedging against that risk. 

@Ashley Pinnell wife and I moved from cali to Ohio early last year and its been awesome! We have been able to achieve our goals in real estate even faster than expected. What part of Ohio are you moving to?

Also Hondros real estate course package is the one you want.

Check out the ultimate guide to grading Cleveland neighborhoods by James wise. https://www.biggerpockets.com/member-blogs/4704/42419-cleveland-neighborhood-grades

You will still obviously need a local team but its a good starting point to get your head around the Cleveland market.

@Jon Schwartz summed it up great! solid analysis. Another thing to consider is the sacrifice of living in a duplex and being more hands on as a landlord vs a more passive investment where you won't need to be the first line of defense. Many midwest metro areas are seeing solid appreciation but nothing is going to come close to LA appreciation, especially when it is compounded by your leverage. Also with a live in house hack like the duplex Jon posted you can force appreciation if you want to get your hands a little dirty.

You will have a harder time scaling in SoCal. How long will it take for you to save up another $200k to do it again? Once you have expended all that capital you won't be able to reuse it. If you want to take advantage of the equity gain after a year will you want to move from the place you live? If you are investing out of state and want to pivot to another deal you can more easily sell. Hope that helps!

I am a flooring contractor and what you were told is correct. That looks like a high quality laminate or hardwood. When the wear layer on a laminate is compromised there is no fixing it, any fix like filling with puddy and restaining on a laminate floor will look like garbage and fall apart quickly. 

Your only option is; if you have more of that flooring, hopefully you kept a box, then a good flooring installer can cut out the messed up pieces and patch in new boards. Hopefully you got a large security deposit....

It is a scary risk but there are companies dedicated to doing these sort of things so you don't have to try to build your own team from 2000 miles away. No one will look after your finances like you will, but there are companies that do acquisition, rehab, rent in most metro areas.

Hi Remee. As an investor who moved from Socal to cleveland in 2019, you should definitely check out ohio city and tremont. It is cool to see the gentrification in person. Also prepare for a bit of a culture shock driving through some neighborhoods if you have never been to an older gentrified city. I stayed in East Bank Flats and it convinced me to consider moving here so that's another cool place to check out.

Message me if you want an investor focused agent recommendation. 

Welcome back! My wife and I actually moved here from California (me=socal her=sonoma county) to Cleveland in order to focus on real estate investing. I live near Gordon Square and we have been able to get started much quicker that anticipated. 

Why do you want do a multi unit instead of single family homes? I like SFH because i can make all utilities the tenant's responsibility. With MFH you have to carry the water and sewer, which is not always bad but just another variable. Parma and Brooklyn are solid areas, I also like Euclid, Mayfield, and Lyndhurst for great B class tenants.

If you need a top notch design-build firm then Scalish Construction or Bennett Builders. Ask for Thomas Meyers at Scalish and tell them I sent you.

If you just need a solid contractor with finish recommendations then message me.