All Forum Posts by: Golan Corshidi

I have found that marketing on the following channels has been the most helpful for me: facebook marketplace, Craigslist, Zillow, Coliving.com, furnished finder, airbnb (set 30 day minimums), roomies.com, and zumper.com

Your market may be a bit different, Im in California.

I have found that if it's just one house, hiring a property manager isn't worth it if you have the time and effort to give the property.

Hit me up if you need anything else, you got this!

2 Votes

Austin, Texas

Hey Victor, Thanks for the reply.

That makes sense it seems much less competitive so easier to negotiate. Are there issues that you think you should avoid regardless of potential for discount?

0 Votes

Hey,

I am curious if any of you have found good deals on the market that were listed on the MLS for a long time (90+ days).

I find that the best deals on the market are usually newly listed (less than a week on the market) and usually the deals that haven't sold have significant issues with them.

What are the reasons that you think homes sit on the market for a long time and how do you navigate the issues to make a deal that works for you?

0 Votes

Quote from @Elisha Johnston:

Quote from @Golan Corshidi:

hey Elisha, I live in San Francisco and just bought a triplex and Cleveland for 140k that's cash flowing well. I think there are some good deals out there. Consider doing section-8 if you end up buying in some of the rougher areas.

That’s actually very similar to what Im trying to do, I’ve heard a number of good things with section 8. Could I follow up via inbox? Definitely curious about your approach to this

Of course! I’ll look out for your message

0 Votes

Cleveland, Ohio

0 Votes

Cleveland, Ohio

Quote from @Bill B.:

You have a kick butt deal, if you generate ha;f the cash flow you’re planning on you’ll be ok. So it won’t matter if you forgot things like management fees (or the value and costs of your mistakes if you plan to self manage.) Advertising (photos and listings.) turn over costs, snow removal, and those kind of things. The big deals will be vacancy, capex and appliances. (3 water heaters, stoves, fridges, microwaves?, washers? dryers?, dishwashers? ac units, furnaces, etc etc.) best case you only have 15 of those, not 21 or 27. With an average life spans of 6 years you’ve got 2-3 per year. I know, you have “repairs”already. But that’s going to be toilets, faucets, leaks, garage doors, etc etc.

I’m not saying you have a bad deal, or I wouldn’t buy it if it was located somewhere warmer without income tax. (Ps. Subtract income tax and tax prep from your cash flow. :-)) Run 2025 through quicken and at the end of the year you’ll have real numbers and you can come back to this post and see how close you were. Hopefully you’ve increased rents and your above expectations.

Thank you Bill. ill add the other expenses and report back in a year!

1 Vote

Quote from @JD Martin:

Quote from @Golan Corshidi:

Hey all,

I used all the advice and wisdom from these channels and decided to do my first deal out of state. I would love your feedback on how you all think I did.

I live in San Francisco and bought a triplex in Cleveland, Ohio in a Class C neighborhood. Based on my numbers, it shows a 45% cash-on-cash return. That seems way too high. Am I missing something? Maybe I need to budget more for tenant default, vacancy, maintenance, or something else.

Background:

I had never been to Cleveland. I did extensive research on the market and based on purchase prices and rents in the area it seemed like a good investment. I bought an almost rent-ready triplex sight unseen in September and got it fully rented within 60 days of closing.

Numbers:

Purchase Price: $140,000

Cash Invested: $42,000

Income:

Unit 1: $1075 + utilities. Unit 2: $950 + utilities. Unit 3: $800 + utilities

Total: $2,825

Expenses:

PITI: $980

General Maintenance: $50/month

Maintenance Reserve: $143/month

Other Fees (admin stuff like LLC, registration fees, etc): $70/month

Total: $1,243.

Monthly Cash Flow: $1,582

Cap Rate: 13.5%

Cash on Cash Return: 45%

I appreciate any feedback or advice on this deal as I am just starting.

Congrats on at least taking action.

You've got nothing budgeted for vacancy that I can see; it depends on how much turnover there is in your market and what your prices are like compared to the rest of the market, but most people would budget 1 month of vacancy/year/unit. In your case that would be $2825/year or about $235/month.

If your place is not fully rehabbed, you have nothing budgeted for capital expenses. Roof, HVAC, water heaters, flooring, etc. You're budgeting less than $2400 for the year for maintenance and repairs for 3 units and that seems unlikely. Who cuts the grass? Where I am, and we have a lot of units under contract for lawn care, we still spend about $1000 per SFH on annual lawn care. There's HVAC servicing once a year on each unit. Assorted things.

Realistically, on a triplex that's not fully rehabbed, without assuming tenant damages I'd be factoring in roof, flooring, HVAC at minimum on nothing more than a 10 year cycle (5 is safer). So let's say $8k for a roof, $10k for new HVAC, $10k on flooring, that's $28k/10 = $2800/yr or about $235/month for just those things.

$235+235 = $470/month, $1582-$470 = $1112 = 33% COC annual.

Either way, you're renting out a place for $2800 that you paid $140k for. That's hitting the 2% "rule", and if you can maintain regular rent on that you've really hit a home run in today's market. Most people are struggling to get 1%.

Thank you JD. I appreciate the feedback. For the anticipated cap ex, would you just put that monthly in some reserve fund and wait for that to come up eventually?

0 Votes

Hey all,

I used all the advice and wisdom from these channels and decided to do my first deal out of state. I would love your feedback on how you all think I did.

Background:

Numbers:

Purchase Price: $140,000

Cash Invested: $42,000

Income:

Unit 1: $1075 + utilities. Unit 2: $950 + utilities. Unit 3: $800 + utilities

Total: $2,825

Expenses:

PITI: $980

General Maintenance: $50/month

Maintenance Reserve: $143/month

Other Fees (admin stuff like LLC, registration fees, etc): $70/month

Total: $1,243.

Monthly Cash Flow: $1,582

Cap Rate: 13.5%

Cash on Cash Return: 45%

I appreciate any feedback or advice on this deal as I am just starting.

3 Votes

@James Wise thank you!! ill reach out.

1 Vote

Cleveland, Ohio

Hey all!

I am purchasing a property in Ohio and since I am unrepresented by an agent I am debating having the listing agent represent me as well.

What do you think are the pros and cons of purchasing a property with dual agency?

1 Vote

All Forum Posts by: Golan Corshidi

Golan Corshidi has started 11 posts and replied 53 times.

Post: Self-Property Management or Property Management Services

Post: Can you find good deals on the MLS that have been sitting on the market for a while?

Post: Can you find good deals on the MLS that have been sitting on the market for a while?

Post: Cleveland and/or Columbus area

Post: Cleveland and/or Columbus area

Post: First Cleveland Investment: Triplex showing 45% COC return. Am I missing anything?

Post: First Cleveland Investment: Triplex showing 45% COC return. Am I missing anything?

Post: First Cleveland Investment: Triplex showing 45% COC return. Am I missing anything?

Post: Looking for Property Manager Experienced in Mid-Term Rentals In Cleveland, Ohio

Post: Buying a Property with Dual Agency