All Forum Posts by: Ike Stephens

How old is the furnace, water heater and roof? You've got $6.50/month budgeted for CapEx. The repairs budget $39.00/month may help make up for that but you'll want to factor in for turnover too (carpet, paint, misc minor repairs etc). A furnace or water heater going out is a pretty quick drain on cash reserves. Most of Clevealnd homes are older so CapEx and repairs are usually more frequent.

Insurance seems low too. Did you get a quote or estimate for $360/year?  I'd just hate for you to assume $360/year and have you find out it's double that when the time comes.

PM in Cleveland is almost always 10% + placement fee (usually first month's rent) so I budget 11% in my calculations. It's hard to find quality ones even at 10% so I'd be cautious of any place that's only charging 8%.


All in all it looks like you may be underestimating the expenses.

We're closing on our first this week. We've been researching the Cleveland market for about 18 months and would have jumped in sooner but another investment opportunity came up. 

The article was really helpful especially starting out so I knew which areas to avoid altogether and it helped me narrow down which areas I needed to do more research on. 

Awesome! The original article helped out quite a bit when I was researching Cleveland. I'm sure this tax rate guide will provide a lot of value as well.

Their rates are pretty high and the main drawback is it's not a revolving line (at least that's my interpretation.) If it was a revolving line that I could access again and again it may be worth it. Considering the rates they charge I think it's probably best to go with a HML. I looked into SoFi just recently but I think a different route is best.

Ike 

Thanks for the advice, Ryan! Welcome to Houston too by the way! We usually don't get this much rain lol. 

"Rich Dad Poor Dad" is probably the one book that has caused the biggest change in my outlook on finances. I recommend it to everyone.

"The Millionaire Next Door was good. A little dry and very factually / study based but it's a good read.

Currently reading "7 Habbits of Highly Effective People". It's shaping up to be a worthwhile read.

Some others that I've enjoyed are:

-Getting To Yes

-How To Win Friends & Influence People 

-Never Split The Difference

-The Richest Man In Babylon

I'm also in the retail space and some books that have more application to that side but can still be applied elsewhere are:

-Crush It
-Crushing It
-How To Sell At Margins Higher Than Higher Your Competitors
-I Know It When I See It
-The Thank You Economy
-UnMarketing
-Delivering Happiness
-Grinding It Out

I'm sure I left quite a few out but that's the top ones that come to mind. I've read probably half a dozen of the BP books too and each of them has been great.

Ike

I sure appreciate the input!!

Ike

Getting close to pulling the trigger on a duplex in 44105. It's about 1.5 miles North of Harvard Ave (106th @ Union). I've been avoiding anything N of Harvard Ave in my searches (thanks @James Wise for the article). But this one is fully occupied at $1,300 gross (2 year leases), requires 0 repairs and is at $30,000.

I'm planning on picking this up for cash and the HELOCing out of it later on to help fund the next deal. The numbers make sense but I'm wondering about the area.

My question is, how far N of Harvard can you go before you reach the hardcore ghetto? Looking on Google Maps (2017 images) I'm seeing some nicer properties on the street and surrounding streets. Flower beds maintianed, freshly painted houses and other signs that some folks actually take pride in where they live. There's some run down places too but the majority look halfway decent.

I'm from out of town and have been on the ground a few times in Cleveland but I'm looking for advice from some locals.



Thanks in advance!