Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Don Petrasek

Don Petrasek has started 13 posts and replied 182 times.

Post: Taxes for investing out of state

Don PetrasekPosted
  • Real Estate Agent
  • Westlake, OH
  • Posts 186
  • Votes 165

Highly likely that you will also have to pay local taxes here in addition to any state tax obligations....its best to consult a tax professional on this as it can get complicated. Also consider the extra cost of having your returns done for another state/city in your ROI estimate.

Post: Realistic CoC ROI in Cleveland

Don PetrasekPosted
  • Real Estate Agent
  • Westlake, OH
  • Posts 186
  • Votes 165
Quote from @Mohamed Gharib:
Quote from @Don Petrasek:

Mohamed, the answer depends on a number of factors including your definition of B-class, location, condition of the property.  In general you are probably going to be looking at around a 5%-6% return at best on a single family in a good area.  The challenge is that you'll be competing against owner occupant buyers who are still willing to bid up a house if its in good shape. You may want to consider C grade houses with government subsidized tenants - there's a huge demand here, 10% returns are realistic and you could buy 2 houses rather than just one A/B class house with the same amount of cash. 

Don, I appreciate you taking the time to share your thoughts. As a first-time renter who doesn't reside in Cleveland (although I plan to hire a property manager), I am hoping to find a hassle-free rental experience. Consequently, I am searching for safe and attractive neighborhoods with good schools such as Shaker Heights, University Heights, some areas of Cleveland Heights, and South Euclid. My budget is $130,000, and I'm looking for a property in good condition or one that requires minor renovations. Considering my preferences, do you think a 5-6% return on investment is still feasible? Additionally, since I intend to pay in cash, do you anticipate any significant competition for the properties?


 $130,000 unfortunately is going to put you on the low end in those cities and may include having to do more repairs than you may want to.  PM me if you want to talk more about other opportunities in the Cleveland market.  

Post: Great Market under 150k

Don PetrasekPosted
  • Real Estate Agent
  • Westlake, OH
  • Posts 186
  • Votes 165

@Alex Ng and @Mayank Jain there's not one best area to invest in Cleveland or anywhere else or some magic investment analysis calculator that will identify the best properties.  

The right area for you depends on 1) your risk tolerance 2) financial situation and 3) short/long term goals.  Your lifestyle also has to be taken into consideration- if you have a demanding job that takes up a lot of your time, owning properties that have constant issues that require your attention isn't going to work.  The value of using an agent is to have someone who can evaluate all these things on your behalf and point you in the right direction. 

I'd also encourage you to visit any market you are considering investing in as a first step.  Neighborhoods look very different in person than they do online...I've had a number of clients who were dead set on properties until they drove thru the neighborhood. 

Post: Realistic CoC ROI in Cleveland

Don PetrasekPosted
  • Real Estate Agent
  • Westlake, OH
  • Posts 186
  • Votes 165

Mohamed, the answer depends on a number of factors including your definition of B-class, location, condition of the property.  In general you are probably going to be looking at around a 5%-6% return at best on a single family in a good area.  The challenge is that you'll be competing against owner occupant buyers who are still willing to bid up a house if its in good shape. You may want to consider C grade houses with government subsidized tenants - there's a huge demand here, 10% returns are realistic and you could buy 2 houses rather than just one A/B class house with the same amount of cash. 

Post: Assistance w/ OOS BRRRR Best Practices

Don PetrasekPosted
  • Real Estate Agent
  • Westlake, OH
  • Posts 186
  • Votes 165

@Jeffrey Reynolds I have 2 out of state investor clients who are currently working on BRRRR properties in the Cleveland area. Neither was a full renovation and both took a while to find the right opportunity. One was fortunate enough to have hooked up with a great contractor a year or so ago for work on other properties he owns in the area (so got pretty much immediate attention), the other I helped find a good contractor but he had to wait until that contractor was available. The best advice I can give is that its going to take a lot of time to both locate the property and to get the work done....much more than you expect. And you aren't going to be able to get discounted costs on the work done.....so lots of time and money. In spite of this though both are still going to wind up with good cash flow and enough equity gain to pull all or almost all of their investment back out if they choose to. I just put up a video case study on one of them on YouTube- search my name to find it or PM me and I'll send you the link.

Post: SELLING CLEVELAND OHIO PROPERTY

Don PetrasekPosted
  • Real Estate Agent
  • Westlake, OH
  • Posts 186
  • Votes 165

If you’re looking to liquidate your Cleveland OH area property let’s talk.

HERE'S WHAT I CAN OFFER:

  • *30+ yrs Cleveland real estate market experience, currently own 6 of my own investment properties. I understand how to value investment properties and calculate returns – most agents don’t.
  • *Area contractor database that I leverage to help you get any needed repairs done
  • *Investor buyer database – I may already have a buyer for your property (avoid disturbing your tenants with showings)
  • *Painting, cleaning, trash removal services available
  • *I sell 3 times more properties than the average agent in Cleveland. I get 2.9% more $s for my Sellers than the average agent.
  • *100% 5-star reviews – Quality Service Award
  • *Top 10% of all agents in Ohio

Use my online schedule to set up a 15 minute call with me

Post: SELLING CLEVELAND OHIO PROPERTY

Don PetrasekPosted
  • Real Estate Agent
  • Westlake, OH
  • Posts 186
  • Votes 165

If you’re looking to liquidate your Cleveland OH area property let’s talk.

HERE'S WHAT I CAN OFFER:

  • *30+ yrs Cleveland real estate market experience, currently own 6 of my own investment properties. I understand how to value investment properties and calculate returns – most agents don’t.
  • *Area contractor database that I leverage to help you get any needed repairs done
  • *Investor buyer database – I may already have a buyer for your property (avoid disturbing your tenants with showings)
  • *Painting, cleaning, trash removal services available
  • *I sell 3 times more properties than the average agent in Cleveland. I get 2.9% more $s for my Sellers than the average agent.
  • *100% 5-star reviews – Quality Service Award
  • *Top 10% of all agents in Ohio

Use my online schedule to set up a 15 minute call with me

Post: SELLING CLEVELAND OHIO PROPERTY

Don PetrasekPosted
  • Real Estate Agent
  • Westlake, OH
  • Posts 186
  • Votes 165

If you’re looking to liquidate your Cleveland OH area property let’s talk.

HERE'S WHAT I CAN OFFER:

  • *30+ yrs Cleveland real estate market experience, currently own 7 of my own investment properties. I understand how to value investment properties and calculate returns – most agents don’t.
  • *Area contractor database that I leverage to help you get any needed repairs done
  • *Investor buyer database – I may already have a buyer for your property (avoid disturbing your tenants with showings)
  • *Painting, cleaning, trash removal services available
  • *I sell 3 times more properties than the average agent in Cleveland. I get 2.9% more $s for my Sellers than the average agent.
  • *100% 5-star reviews – Quality Service Award
  • *Top 10% of all agents in Ohio

Use my online schedule to set up a 15 minute call with me

Post: SELLING CLEVELAND OHIO PROPERTY

Don PetrasekPosted
  • Real Estate Agent
  • Westlake, OH
  • Posts 186
  • Votes 165
If you’re looking to liquidate your Cleveland OH area property let’s talk.

HERE'S WHAT I CAN OFFER:

  • *30+ yrs Cleveland real estate market experience, currently own 7 of my own investment properties. I understand how to value investment properties and calculate returns – most agents don’t.
  • *Area contractor database that I leverage to help you get any needed repairs done
  • *Investor buyer database – I may already have a buyer for your property (avoid disturbing your tenants with showings)
  • *Painting, cleaning, trash removal services available
  • *I sell 3 times more properties than the average agent in Cleveland. I get 2.9% more $s for my Sellers than the average agent.
  • *100% 5-star reviews – Quality Service Award
  • *Top 10% of all agents in Ohio

Use my online schedule to set up a 15 minute call with me

Post: Helped Owner Exit Distressed Property

Don PetrasekPosted
  • Real Estate Agent
  • Westlake, OH
  • Posts 186
  • Votes 165

Investment Info:

Single-family residence other investment.

Sale price: $130,000

Successfully liquidated distressed property for a "don't want it anymore" Seller. Property needed extensive rehab and was not eligible for standard mortgage financing. By developing and executing a marketing plan specific to the property, I was able to generate 43 offers and negotiate the $79,900 listing price up to $130,000.

How did you add value to the deal?

1) created marketing to assure property had as much visibility as possible 2) developed on market timeline that created urgency without missed opportunities 3) negotiated best offers to make sure no money left on table

What was the outcome?

Seller netted ~50% more than expected

Lessons learned? Challenges?

Stick to your plan. We established an offer deadline that was designed to make sure all interested parties had a chance to submit an offer. Within a day of listing we received a very strong offer that required an answer right away (ignoring our established offer deadline). Based on interest level we stuck to our plan and did not respond- which was difficult (bird in the hand?). Wound up getting about 15% more for the property