All Forum Posts by: Greg Haygood

@Robert Flores I’m an out of state real estate investor in with properties in Cleveland. My last purchase was a 100+ year old duplex in Cleveland Heights, OH.

I used WIN Inspection to vet this house, and I’ve used them several times during my search process. I would not consider buying a home without their feedback and/or inspection report.

I’ve had several good experiences with inspector Dan DelMonte, but I’m confident that they have have a very professional, knowledgeable crew.

https://wini.com

Investment Info:

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

Purchase price: $185,900
Cash invested: $49,371

My first multi-family investment, a duplex in Cleveland Heights, OH. It took almost six months to close, i.e. lots of local red tape and other issues, but after three separeate re-negotiations, we closed the deal. It is also my first section 8 property. Most unique, I bought the property sight unseen from out of state, which is another first.

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

I wanted to buy my first multifamily home. With prices appreciating nationwide, I spent all of 2021 finding this deal. The projected cash flow provided enough downside protection for me to get a few things wrong.

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

I found it on Zillow. I have a great agent, and she knows the area well. I used her market analysis to craft an offer, and the owner accepted with no counter. Unfortunately, he is dealing with medical problems, so he is selling his investments.

How did you finance this deal?

I used a conventional mortgage, although it's my first investment property loan. Rocket Mortgage required a 25% down payment.

How did you add value to the deal?

In this instance, my value contribution was being patient to ensure I bought at a profitable discount to market. Real Estate assets are appreciating significantly nationwide, even in small markets. It was important that I chose a deal that still allowed me to cash flow. I had a few contracts that I lost on the way, and this deal seemed came to the brink. It was critical that I knew my walk away point before I began negotiations.

What was the outcome?

I collected my first rent payment this month. The HUD payment was deposited at midnight on the third, which was awesome. One tenant is late, although she is long time tenant, so I hope for the best.

Lessons learned? Challenges?

I truly believe my patience paid off. I knew what I wanted before I began looking, and I did not compromise.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My agent, Linda Pursely of Tower High Realty, is a rock star. If you are searching on the east side of Cleveland, OH, do yourself and your portfolio a favor and give Linda a call.

Good Afternoon REI Community,

I'm very close to convincing a friend to dip his toe in REI with his first property. He lives in Collierville, TN, which I gather is a suburb of Memphis. I don't know the area very well, and he's suggesting that real estate taxes are a major concern in his cash flow analysis. Additionally, market values seem to be healthy and appreciating. He's also found a property manager whom he feels is experienced and knowledgeable of the area, a gold mine if true. He's a pretty smart guy, and if I can point him in the right direction, I know we'll have another convert (lol).

I live in Washington DC, so I know the market is dramatically different, and I'd like to give him local advice.  Are there any BP investors in the Memphis area willing to share their experience and/or advice?

Much appreciated,

Greg H

@Diego Hodge I'd like to expand in Cleveland as an out of state investor. I understand off campus well enough, but how do you target VA and traveling healthcare workers in Cleveland, eg Cleveland Clinic listserv?

My family and I purchased a home in a private beach community in Bethany Beach Delaware last October.  The community is named Sea Colony, and our unit is approximately .9 miles from the ocean.   We invested significant time in preparing the unit for the 2020 rental season, and we were initially encouraged - our unit was rented for the entire season before the end of January 2020.  Once the pandemic took hold, we began to receive cancellation requests in April and May, which was probably the scariest time during the pandemic.  We didn't have to refund, contractually, but we thought it was the right thing to do.  However by June, it was clear that the pent up demand resulting from being quarantined far outstripped cancellation requests.  The management company has been handicapped by supply chain and travel disruptions, which primarily prevented European students from fulfilling their summer lifeguard and hospitality jobs, but vacation demand has been on pace to meet or exceed prior year levels (per the management company).  We have been able to meet our conseravtive cash flow projections in spite of the Covid pandemic.  I believe one of the primary success factors has been accessibility.  The typical vacationer is from the NE corridor of the country, which means 95% of all Sea Colony vacationers drive here.  No flight is necessary; families may travel in their own socially distanced comfort.  The beach is private, so the community avoids overcrowding, and families can comfortably remain distant from others while relaxing.  If my family purchased a home in the Carribean or South Florida, I believe we may not have been so lucky, but that's only a theory. 

I’ll give it a shot. Born and raised in Cleveland, OH 😊

Thanks.  I'll check them out.

We use Wyndham Vacation Rentals who manages the pricing, which fluctuates depending on demand for the week.  For example, July 4th is more expensive than September 4th.  This year, we received $2,075 for a week in July and approx. half that rate for a September rental.  

Good Morning BP Community,

My family and I are looking to change accounting firms. We used Glass Jacobson who did a fine job on the filing. However, I’m looking for more of a strategic partner in addition to tax services. My current firm won’t even answer my emails. My wife even contacted them for a separate opportunity involving her employer - no reply.

My wife and I have one SFH in Ohio, one vacation rental in Bethany Beach, DE, and one 3- bedroom 2-bath unit in the heart of Logan Circle DC.

Any recommendations would be appreciated.

Thanks

Greg H

@Kenneth Croisetiere just curious - did you end up using Brandon Hall for tax services. I’d like to know more about your experience if you feel comfortable sharing.