All Forum Posts by: Jack Krusinski

Yes, in my experience appraisers have to pull COMPS that are in the same city as the subject property. Even if it is right on the border of another city. 

Hi David! Is this home a MF or SF? If SF, I have my tenats pay for water and sewer. If MF, yes you will have to pay for water and sewer! 

Hi Miguelli, to answer your question, " is it better to find properties that will cash flow at lower purchase price and find ways to spend the income to avoid taxes or to give up some cash flow and possibly even be at a loss for a few years to buy at a more expensive price in a better neighborhood, be able to take the tax savings each year, but also have a better rate of appreciation?" In the Cleveland market (where I live and invest in) I belive you can do a little bit of both. My suggestion would be to buy a property in a nicer area (or right outside a nicer area that is primed for appreciation) that either breaks even or makes a little bit of cash flow. That way, you can take the tax deduction and have a less risky investment that is primed for appreciation. You will also get some cash flow. 

Hi Clarence! I just shot you a direct message. I am a investor and Realtor here in the Cleveland area. 

Hi Reagan, Personally, I include mortgage paydown (added equity) and home appreciation in my ROI. I feel that it is a part of the attraction of the assets class, and it should be included.

Hi Bob, I am a Realtor so I have access to the MLS. Which I feel is the best tool to COMP properties. However, most people are not realtors so you do not have access to it. I would one, network with a realtor to have them pull comps for you. It shouldn't take a Reatlor too long to do. Also, you can use Realtor and Zillow to see what has sold recently in the area.

The best way to get better at estimating rehab costs is by doing projects and learning the hard way. With that being said, that is also the most expensive way. Other ways are shadowing a contractor, going to networking events and building relationships with contractors to have them help you out. Everything is local so make sure you are connecting with a local contractor! 

Hi Noah, I was born and raised in the Clevealnd area and went to college here. I fix and flip and buy and hold in Cleveland only. I am also a real estate agent for investors here. In other words, I am biased towards the Cleveland area. It has been good for us / our investors—very affordable and good price-to-rent ratios. I believe Cleveland will continue to grow and be a good market for Investors. The two main reasons, I believe, are affordability and the healthcare base. Cleveland Clinic has been ranked the second-best hospital in the world. It is headquartered here, along with many other hospital systems. Hospitlcas very rarely go out of business. Health care is overall pretty inelastic. Also, in a time when homes are becoming more and more unaffordable, I believe that investors and homeowners will seek markets where homes are affordable. But in the end, I could be wrong! This is just my opinion; I am biased, as I stated before.

The Cleveland area can achieve any real estate strategy you are looking for. BRRRR, flips, long-term buy and holds, high cash flow, good potential appreciation in the right areas, mid-term rentals (many traveling nurses come here because of the Cleveland Clinic), Air Bnbs, etc. Cleveland definitely has its pros and cons, like any investment area. You need to watch out for point of sale, lead paint requirements, and Cleveland's new investor requirements. If you have the right team here, you can be successful.

If you have any other questions, don’t hesitate to reach out. I put together a few resources for investors to help them understand the good areas and bad areas, what to look out for, and what to avoid. I'm happy to send them to you if you like.

Send me a direct message! Depending on what type of contractor, I have a few recommendations for you. 

I would try to do "micro rent raises" on a few of the units. $15-$30 dollars. So the little raises help a little. Then, for some of the other units, I would say, based on your message, it is safe to say that they would need rehab to get full market rent. So with some of the other units. After the leases are up (or if they are month to month), serve the tenant for 30 days and renovate each unit. Then get those rents to full market value. Then rinse and repeat.