All Forum Posts by: Gino Tomba

Gino, I am not a coach or anything like that, but it sounds like you have put some thought, research and time into this.  Again, not a coach, but you need to make a decision whether you want to TAKE ACTION or you don't want to take action at this point.  The only way to get going with anything in life is to do enough research to feel confident (not enough to paralyze yourself) and jump in with 100% commitment knowing that you won't have 100% of the information and knowing that things might not go 100% perfect.  Taking action is the only way to break your fear.  Taking action is the only way to learn and improve.  You are either going to do it and TAKE THAT ACTION, or you are going to continue to sit and analyze for the foreseeable future with no progress being made.  

If you are not comfortable enough to jump in by yourself for your first investment then find a partner who is experienced that you can learn from.  

Personally, I want to live in a place that I like. Some people will house hack in an area they don’t want to live in so they can squeeze every dollar. If you want to live in a particular area, that’s what I would look at first instead of returns. Don’t get me wrong, it has to cashflow after you move out but live in a place that you’ll enjoy. Invest for lifestyle, don’t sacrifice lifestyle (too much) to invest. 

When looking at cashflow for 12 months in the future after you move out, definitely look at the aggregated data like Matt said. Also, call around to ads and even go look at places to see how much they charge and compare that to the specs of the place. That exercise will help you get more comfortable in your target area. 

Hey Gino - You would be crazy to not be a little hesitant on your first deal. It’s good that you’re being a little cautious so don’t feel bad about it. 

Stick to the areas you are comfortable with and/or get some local people in your corner to help educate you on areas you want to learn more about. Working with a good person or two that are actually investing should give you a lot of confidence. 

Lastly, if you’re so tight on cash that the house could become a curse, maybe it’s best to wait a minute while you save a little more money. Take action but don’t be in a hurry. Cardone is all about massive action but sometimes that means hustling to pile up cash before you make your move. Patience can be the massive action sometimes.

Let me know if I can help in any way. Even if you are already working with an agent and need a second opinion or want to chat, I’m always down to talk shop with investors. 

The west side is totally different than the east side. East side, it’s spotty in neighborhoods, I’m sure you know this already. You don’t have that on the west side. Pretty much anything west of 77 is going to be a descent rental area. There are some pockets in the northern side of 44109 that can get rough, but it’s pretty much uniform over here. 

The pool of renters in Cleveland is huge. There's no lack of demand in any of the areas you listed. In my experience, the thing that's most variable is the class of tenant and applicants. If you offer a nicer product, you'll get a larger pool of applicants - good and bad. If you have a subpar product (old, dingy looking unit) your applicants will be the type that can't be selective (poor credit, lack of stable income, etc.). It's likely because they've been rejected from the nicer units in the area. 

I have two similar duplexes in Old Brooklyn; one was renovated substantially nicer than the other. I don't have issues generating interest with either of them. It was a little more difficult, however, filling the lesser property with a qualified tenant.