All Forum Posts by: Jack Krusinski

It's tough to give a definitive answer without knowing your specific investment goals (cash flow, appreciation, etc.) and preferred strategies (BRRRR, wholesaling, etc.).

However, since I'm a Cleveland native and active in the real estate market here, I can offer some insights on why Cleveland could be a good fit:

• Affordability: Compared to many other major metros, Cleveland offers a relatively low barrier to entry. You can still find solid investment properties at reasonable prices, which can lead to strong cash flow.
• Diverse neighborhoods: Cleveland has a wide variety of neighborhoods, each with its own character and investment potential. This allows you to really niche down and target your ideal tenant demographic. Do you want to do section 8? That works well here. DO you want to do mid-term rental to traveling nurses? That works well here to. A lot of different strategies work very well in the Cleveland market.
• Strong rental demand: With major employers like the Cleveland Clinic and University Hospitals, along with a growing arts and culture scene, Cleveland attracts a steady stream of renters.
• Revitalization efforts: Many areas of Cleveland are experiencing significant revitalization, which can lead to increased property values and appreciation potential.

I can't comment on the Detroit market specifically, I have never been and have never done any research on it!

Hi Richard,

I am an investor myself and was born and raised in Cleveland. I am also an agent. I have great lenders and property managers I can refer you to.

In Cleveland, it all depends on what your goal is. Are you looking to just get the maximum cash flow? There are certain areas and strategies for that (and city laws you should be aware of). Are you looking for mostly appreciation potential? There are certain areas that I believe will see higher appreciation over time. Or are you looking for a hybrid of both? Good cash flow but also will hopefully see some appreciation?

Yes I do. I just sent you a PM with a good recommendation! 

How much would you have to put in it, what would it rent for, with your current mortgage (if you have one) what would the cash flow be, and is it in a good appreciating area that you believe in? Then on the opposite side, what could you sell it for and how much cash would you get at closing? I would have answer to the questions then with those answer, I would ask, can you find a better deal (equity, cash flow, appreciation potential etc.) that better fits your portfolio and is it worth the extra time? If the answer is yes, I would sell. If it is no, I would not sell. 

Did you take professional photos and what do you have the amount for rent? Also, this is the worst time of year to try and rent a property. It will pick up in January. 

When my rental properties are in a situation like this, I make an effort to create a structured and aggressive payment plan to help tenants catch up. However, if they fail to meet any of the agreed-upon payments, I request that they vacate the property.

I recommend checking with your lender about their specific requirements. If you're planning to use an FHA loan or another owner-occupant loan, there are typically rules about tenant occupancy. Most of the time, you can purchase a property with tenants already in place, but the leases often need to expire within a certain timeframe—usually around three months—so you can establish owner occupancy. Your lender will have the exact details.

If the current leases don't align with your timeline for moving in, another option is to explore a DSCR (Debt Service Coverage Ratio) loan or a traditional investment loan. These don't require you to live in the property, so you could close with the existing tenants in place and then move in once their leases expire. Keep in mind, though, that this approach comes with higher down payment requirements and interest rates, which may not be as favorable

I just sent you a DM with two recommendations. 

Hi Jingeli, this deal seems very good. Do you know the bed bath count and location class? If this is a a C class area or better, I would say this is a good deal.

The quickest way is to build a relationship with a general contractor and have them walk the property and give you a quote. Then to be safe, I like to add 10% to it as a buffer when/if cost overruns occur. Then as you get more and more experienced you will be able to estimate it yourself from doing your own projects.