All Forum Posts by: Gardy Saturne

 Thanks for this resource. Definitely will check it out. 

Hi Everyone, 

Thank you so much for the advice. I honestly could've did a better job doing my due diligence. The property management group was listed as recommendations in here and on facebook as well. I should've ask more on how they handle certain procedures. My boots on the ground wanted to get involved in the deal but they didn't have the capital needed. My downstairs tenant has paid on time since I inherited them. I had the property management since JAN 1st. I can honestly say I was a bit more laid back than I should've been. But now I learned from my mistake. I'm strongly considering the move to ohio to house hack. MY PM did mention they can handle eviction. After reading everyone's advice it does seem best to find an attorney to give me the best insight. Even though this is my first rental property I will not let it discourage me from continuing to build my rental portfolio. I'll keep this thread updated. 

I sincerely appreciate everyone response. 

Hi Guys,

I am an out of state investor that purchased my first duplex in Cleveland, OH last year.  I'm already negative cash flow on this rental because of unexpected repairs and tenants not paying. After turning over the unit to get it rent ready - I had to replace upstairs stove, two hot water tanks, and get the furnace serviced, and a plumbing job in the basement.  My upstairs tenant fell behind for 3 months - received some assistance just to catch up, but now has not paid this month. Also since I closed on my property - my downstairs tenant has paid on time until this month. This is the first month where both my tenants have not paid. In the beginning I attempted to self manage my property out of state with using boots on the ground. It didn't work out as well which is why I hired my property manager. The property manager that came in was after the tenants have been placed. 

My property manager doesn't inform me when tenants pay late, when tenants call in for repairs etc. I only know when tenants pay late when I received my owner's statement. But this is received by the 15th of the month.  By too much time has gone by for late notice, eviction letters etc. They let me know when they are repair issues that need to be addressed - hence the plumbing job and the furnace.  Property manager quoted me 2500 for furnace replacement. My boots on the ground was able to get it serviced to get fixed for 729$. At this point I am eating the cost of supporting my rental from my W2 salary. I am in a 2 year contract with my property management company. To cancel the contract is 500$. 

These are my thoughts of where I am at .. If I have to evict either upstairs tenant or both, I'm strongly considering moving into the property. My job will be 100% remote by September. I do have the capacity to move from NY to Ohio. I would have the opportunity to leverage my W2 salary for FHA loans, continue to house hack - I'm also going to continue to wholesale as well. I'd figured me being there I would have more power to turn this property around. My second thought is I could search for another property management company . Then pay to cancel the contract with my current property manager. I'm just looking get some insight on if the property manager is mismanaging the property how do I go about it lawfully. If I have to evict my tenants how would I go about that being out of state. I'm willing to answer any other questions that can provide more insight on this.

Thanks again. 

Originally posted by @James Wise:

Originally posted by @Gardy Saturne:

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $70,000
Cash invested: $12,800

Last month I closed on my first investment property in Cleveland ohio

What made you interested in investing in this type of deal?

It was a duplex with great cash flow and equity

How did you find this deal and how did you negotiate it?

found this deal doing driving for dollars in the Cleveland area. The asking price was perfect didn't need to negotiate much

How did you finance this deal?

through a hard money lender

How did you add value to the deal?

currently fixing the upstairs unit to make it rent ready. A light cosmetic rehab

What was the outcome?

Great cash flow and equity

Lessons learned? Challenges?

I purchased this property sight unseen. The numbers looked great when I did my due diligence. The seller was concerned about alarming the tenants during this process. Since the tenants were on a Month-2-Month lease they didn't want to risk loosing the tenants incase I didn't perform on the deal. The lesson I learned was I should've asked for a price reduction for sight unseen purchase. I also recommend looking for local lenders in your market instead of nation wide lenders.

 Wicked dope dude. Depending on the neighborhood that's a $100k duplex all day.

 Yea man thanks - appraisal came back at 125k ! 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $70,000
Cash invested: $12,800

Last month I closed on my first investment property in Cleveland ohio

What made you interested in investing in this type of deal?

It was a duplex with great cash flow and equity

How did you find this deal and how did you negotiate it?

found this deal doing driving for dollars in the Cleveland area. The asking price was perfect didn't need to negotiate much

How did you finance this deal?

through a hard money lender

How did you add value to the deal?

currently fixing the upstairs unit to make it rent ready. A light cosmetic rehab

What was the outcome?

Great cash flow and equity

Lessons learned? Challenges?

I purchased this property sight unseen. The numbers looked great when I did my due diligence. The seller was concerned about alarming the tenants during this process. Since the tenants were on a Month-2-Month lease they didn't want to risk loosing the tenants incase I didn't perform on the deal. The lesson I learned was I should've asked for a price reduction for sight unseen purchase. I also recommend looking for local lenders in your market instead of nation wide lenders.

@Jonathan Greene thanks for the mention 

@Delvon A Byrd I am virtually active in the Cleveland market. I'll send you a PM

@Ryan Cleary I haven't purchased a turnkey property. But from the previous duplex deals I've seen it's usually rented out 650-750 in Cleveland. I'm sure you will confirm with the rent roll. Cleveland is divided into West and East. Even though it's all low income, the west side of Cleveland is more desirable. There's a lot more development happening on that side of time. East Cleveland has certain pocket zip codes I would stay in. For example. 44108 is good part of town. Anything going towards more Euclid area is more suburban area. If you are interested you can PM the address you are looking into. I could give a better opinion on your purchase price. 

Thanks @Jonathan Greene  

@Ryan Cleary When I click on the link, it doesn't take me to the report. 

@Saleh Riazi sounds great ! Just sent you a request. Let's stay connected. 

@Remington Lyman I haven't made it down yet. But I will be coming back on Sept 14th.