All Forum Posts by: Ian Tvardovskaya

Titus, if your house is vacant, make sure its secure. I own several in 43211 and manage others as well. You will get a good return and the city is poring money into this neighborhood, but its rougher. 

Try Hanover Insurance, they insure mine.   

You need an estoppel, the title company can write it up. 

When I've bought properties with delinquent tenants I send them an introduction letter that outlines the amount due and gives them two options: 1) vacate the house on or before a certain date, remove all their belongings, and clean the home and in return I'll waive the current amount owed - basically debt for keys. 2) they stay and sign a repayment agreement that my attorney gets signed by a judge. If they miss a payment, then I can red tag the door without a trial. Ohio is much more landlord friendly, then NY so you may not have option two. 

Even if you can obtain financing, that doesn't mean you should. I help with apartment community due diligence and large companies look at dozens of communities before buying one. 

Consider expenses that are currently not calculated. Mortgage payments are not included in expenses, what will your first and second position payments be? Is the property owner managed? Are the utilities properly metered and compliant with city requirements? Is the lawn and snow cared for by the owner? Have large items been deferred - parking lots, roof, ect? Are any of the apartment communities amenities in the public right of way - signs, fence? Is there a staff, if so, then can they be replaced at their current wages if they quit? Do you have the proper people in place to handle payroll, taxes, and state/city compliance? Is there an onsite office, if so, does it have all the equipment needed to function? 

Consider when the current owner claims a property made its income. Was it last month, quarter, year? How many units were occupied then versus now? How many service requests were open then versus now? How many people are in legal, if evicted what is the income? How many people are not paying, if evicted what is the income? How many people are currently on notice to vacate, they will leave and it will effect your income? Are the market rents undervalue? Are the market rents overvalue, meaning if people leave could you rent the same unit for the same amount?  

The property is making $328k after the current owner's expenses, what will it be making after your expenses? Only when you know the latter can you determine if the property will give you a good return at a tolerable risk level. 

Big deals often require teams of people that know how to handle different problems as they come up. If you're about to do a $4m deal make sure you have people that can support. 

@Kristopher Hanks

That's a long time for an initial inspection. I can usually get them scheduled in 2-3 weeks in Columbus. Basically, I schedule it, repair the unit, then give my maintenance team a deadline to complete.

@Kristopher Hanks

That's a horrible story and I've, unfortunately, had similar things happen to tenants in Columbus.

Can you tell me, how long did it take for them to inspect your house?

@James Wise the water devision is horrible and o the verge of useless. I guess is CMHA is better that's a positive.

Looking for a review of the Cleveland Metropolitan Housing Authority (CMHA). How easy are they to work with? Good service? I do a lot of work with Columbus Metropolitan Housing Authority and i love them. I would like to take my experience north for lower acquisition costs.

I think I'm about to buy a 50 unit, value add mobile home park. Any suggestions on major concerns I should have during the due diligence period? Any documents I must have?

@Karen Warren Apply for an EIN number through the IRS it's free and takes 5 minutes. A business bank account is essential to make it look like you and your LLC are separate entities. A business credit card is nice because you can earn cash rewards, but it's not essential to start.

@Stefano Mitrano Who pays the water? If the tenants pay, then I'd add the dishwasher and w/d because you can often get more rent for the amenities. If you pay water, I wouldn't add them.