All Forum Posts by: Eric Prescott

Where in Boston was this? What's the ARV and rent? Nice work. Good cash flow.

Not sure why I never got notifications about replies on this post. SFH. Do you mean class of neighborhood? (B)

Not sure why I never got notifications about replies on this post. It's in an LLC, so DSCR, yes.

I can put you in touch with CLE Premier Property Management Services. 

This is all good advice. Go with DSCR. Yeah, the rates are a little higher, but the flexibility is great, and you can refi out of these some day just like you can with a conventional loan. Build the higher rate into your numbers when you're examining whether a property is a good deal in the first place. I bought a SFR for $120k, rehabbed it for $30k, and it looks like it will appraise for $200-$220k, so we are in great shape for a 75% LTV cash-out refi and will have our money back much faster for the next one.

Did this work out for you? Are you still looking to invest in Cleveland? What's your status?

Didn't see the date on this one...

Investment Info:

Single-family residence buy & hold investment in Cleveland Heights.

Purchase price: $120,000
Cash invested: $26,000

SFR was mid-rehab when the owner, who had been working at it for a while, put it up for sale. Purchased for $120k on 5/2/23, rehabbed it with my local team, and my property management company leased it out on 7/31/23 at $1,875/mo.

How did you finance this deal?

Hard money - Freedom Capital Funding, Alex Crivelli. This has gone very smoothly from beginning, with very quick draw turnarounds. Keeping the loan for a bit until ready to utilize the cash out from a refi on another investment, since we still have many months left on this loan and it cash flows about $200/mo more until we do the cash-out. So the last R in BRRRR does not yet apply...

Starting out as of only last year, I've been happy when I can buy at 50-60 cents on the dollar and rehab properties that cash flow, allow me to cash out more or less what I've put in, and especially when I can do so in areas with above average appreciation. It may not be that 15-20% speculative roller-coaster appreciation, but one reason I diverted funds from equities to RE was to find some boring-but-reliable growth while also throwing off enough cash to--once scaled--replace my wife's income when she is ready to retire and pay for the extra expenses of a special needs child in the meantime (I'm already semi-retired; attached is a picture from my Monday afternoon.)

I'm 52 and feeling the age thing for sure, with 3 levels of cervical fusion less than a month in my future. I'm very much trying to balance enjoying my son's youth while I'm still reasonably able-bodied, with some equity left to show for it when I'm gone. He's only 4, but he's already shown an interest, if only because he enjoys roaming rehabs in their various stages for now.