All Forum Posts by: Eric Zunkley
Eric Zunkley has started 8 posts and replied 30 times.
Post: Lakewood Ohio Insurance and Water / Sewer costs

- Residential Real Estate Agent
- Los Angeles, CA
- Posts 32
- Votes 6
I'm interested in a duplex in Lakewood, Ohio does anyone have an idea of how much water / sewer can cost per unit? Also how much would you roughly pay for insurance on a duplex not occupied by the owner at a value between 100-250k?
thanks,
Eric
Post: commission

- Residential Real Estate Agent
- Los Angeles, CA
- Posts 32
- Votes 6
How long do you need for inspections?
Post: Real Estate Agent asking for Exclusivity.. is this normal?

- Residential Real Estate Agent
- Los Angeles, CA
- Posts 32
- Votes 6
Post: Renting a Condo in Cleveland Suburbs Questions.

- Residential Real Estate Agent
- Los Angeles, CA
- Posts 32
- Votes 6
Originally posted by @James Wise:
Mentor is a really nice area.
You should not have a major vacancy problem.
So what is the market GRM or cap rate in that area?
Post: Renting a Condo in Cleveland Suburbs Questions.

- Residential Real Estate Agent
- Los Angeles, CA
- Posts 32
- Votes 6
Originally posted by @James Wise:
What suburb are we talking about?
Mentor
Post: Renting a Condo in Cleveland Suburbs Questions.

- Residential Real Estate Agent
- Los Angeles, CA
- Posts 32
- Votes 6
I'm looking at a deal in East Cleveland Suburbs about 20 miles east. I grew up in the neighborhood and went to high school around there.
Questions.
I was curious what other landlords use for an estimate for vacancy in suburbs of Cleveland? I started with 1/12th of annual rent.
What is an acceptable GRM to purchase at in suburbs of Cleveland?
Post: Anyone ever use a HomeStyle Renovation Loan?

- Residential Real Estate Agent
- Los Angeles, CA
- Posts 32
- Votes 6
Originally posted by @Patrick Britton:
you can only use the homestyle loan on a 2 unit if you intend on living in one of the units...it it's for investment purposes only then you're limited to 1 unit :(
I plan to occupy one of the units. What is the minimum amount of time I have to live in the unit? My biggest concern is the loan not being approved. If I use this loan for a probate property I will have removed all contingencies by this point.
Post: Anyone ever use a HomeStyle Renovation Loan?

- Residential Real Estate Agent
- Los Angeles, CA
- Posts 32
- Votes 6
I'm looking at purchasing a duplex that needs mostly cosmetic repairs and updated bathrooms and kitchens. I'm looking to talk to people who have experience using a individual loan for purchase and repairs / renovations.
Post: Cash Flow or Appreciation: What the numbers say

- Residential Real Estate Agent
- Los Angeles, CA
- Posts 32
- Votes 6
Originally posted by @Account Closed:
There are pages and pages of discussion and opinions on cash flow markets (midwest) vs. appreciation markets (coasts). What I haven't read so far is a simple analysis of the numbers. Since I actually own properties in both markets, here is how I see the numbers stack up. Now remember, this is only the numbers, not counting work, risk, hassle factor etc etc.
Lets consider two hypothetical but typical portfolios. Each is purchases with 25% down and 4% interest rates. The midwest property returns enough cash flow to pay off the mortgage fully in 10 years if all positive cash is reinvested into principle reduction. This is possible and I am doing it on my midwest portfolio.
The coast property lets assume just breaks even even after paying the mortgage on a 30 year basis. Thats common with many coastal expensive markets and probably the lowest return I would accept as I don't want to have negative cash flow ever.
Lets assume we sell both portfolios after 10 years
On the midwest property lets assume 0 appreciation. Your total return over 10 years would be 300%.
If the coastal property would grow at a CAGR of 5% per year, after 10 years your gain would be slightly higher than this at 322%. If it grew at 4% per year it would be slightly less at 265%. So you would need something between 4% to 5% CAGR over 10 years for both these investments to have equal returns.
These are rough numbers, no closing costs etc accounted but I think it makes the point.
So then you look at the risks on either case. Both have risks. Cash flow may not actually be as high as you thought and reduce returns. OTOH, appreciation may also not happen.
On the plus on the cash flow, at least some of it is in my control. The appreciation is a market phenomenon and mostly out of control. And cash flow is independent of value of the asset. It can go down but the cash flow remains. Also equity builds fast and chances of getting upside down is low.
On the plus side of appreciation: Chances are its a lower time commitment and better tenants. Plus it has a better upside. The cash flow is bounded and you can only improve it so much. Appreciation upside is theoretically unlimited. But equity builds slowly and you could end up upside down in a bad market.
So I guess the point is there are pros and cons to both approaches.
I think there is a risk of deflation in the Mid West. My father's property has gone down in value by 15% over 15 years. The house I grew up in is the same value it was in 1995.
Post: Another agent in Los Angeles

- Residential Real Estate Agent
- Los Angeles, CA
- Posts 32
- Votes 6
Looking to meet another real estate agent licensed in California to combine forces and work together in Los Angeles. Together we can save money on marketing and services and hopefully accomplish more together. Is anyone interested?