All Forum Posts by: Jack Krusinski

Hi Nick,

Both options you've listed have their pros and cons, but most d experienced real estate investors would likely recommend the second option for the sake of clear record-keeping and easier tax preparation.

Keeping a separate bank account for your rental income and expenses can greatly simplify your financial tracking and reporting. This includes not just rent collection and mortgage payments, but also expenses related to maintenance, repairs, insurance, and any other costs related to your rental property.

While it might seem more cumbersome to make frequent transfers and transactions between your personal and rental accounts, having a clear, separate record of your rental income and expenses can be a real boon when tax season rolls around. It also helps you get a clear picture of the profitability of your investment and can protect you in case of an audit.

One common approach is to set up an automatic monthly transfer from your personal account to your rental account to cover your portion of the mortgage, taxes, insurance, and other expenses. This way, you'll have a consistent record of these transactions.

Remember to consult with a tax professional or a certified public accountant familiar with real estate to ensure you're following the best practices for your situation. They can provide more personalized advice that takes into account the specifics of your situation, your local and state tax laws, and federal tax laws.

Hi Amir,

I've managed several rental properties in Cleveland, Ohio, and based on my experience, a vacancy period extending to two, three, or even four months isn't typical. More commonly, we observe vacancies lasting up to 30 days.

There are several critical factors to consider. First, evaluate your rental pricing. Is it competitive considering the property's quality and location? An overpriced unit can take longer to rent out.

Next, consider your marketing strategies. Are you reaching out to the right audience? We find that platforms like Facebook Marketplace, Zillow (where we invest to boost our properties), and Realtor.com are effective channels for advertising our units.

Quality photographs can also significantly improve your listing's appeal, and offering flexible viewing times can make it more convenient for potential tenants. We typically schedule viewings after 5 PM on weekdays or during weekends to accommodate prospective tenants' work schedules.

Lastly, consider your response time. Quick responses to tenant inquiries can make a world of difference in how fast you fill your vacancies.

I hope these insights guide you in reducing your property's vacancy time. Good luck!

Hi Julie,

I'm sorry to hear about the troubles you've been having with property management in Cleveland. I understand how challenging and frustrating it can be to deal with unreliable property management, especially when you see the potential in your property. Check your inbox! I sent a few over to you.

Here are mine. 

1. Local Property Management: Having a reliable and competent property management team is often cited as one of the most crucial factors for out-of-state investors. A good property management team can handle tenant screening, rent collection, property maintenance, and other day-to-day tasks, relieving you of the burden of managing the property from a distance.

2. Location: The location of the property is a significant consideration. Investing in an area with strong economic growth, employment opportunities, good schools, amenities, and low crime rates tends to attract quality tenants and potentially lead to higher rental income and property appreciation.

3. Networking and Local Contacts: Building a network of local contacts, such as real estate agents, wholesalers, contractors, and other investors, can provide valuable insights and support. They can help you navigate the local market, identify opportunities, and establish relationships with reliable service providers.

4. Good Real Estate agent. Someone who is an investor themselves, knows the market and who isn't just looking for a commission. 

Hi Jeremy, I am an agent that specializes in working with out-of-state investors. Happy to share with you tools, what to look for in a team, and how to avoid some common pitfalls for out-of-state investors. Just shoot me a PM.

Here are some factors to consider:

1. Rental income: The rental income you can earn from the property should cover your mortgage payments, property taxes, insurance, maintenance costs, and other expenses associated with renting out the property. If the rental income is higher than your expenses, then renting out your home can be a profitable option.
2. Market conditions: Consider the current real estate market conditions in your area. If the market is hot, you may be able to sell your property for a good profit. However, if the market is slow or prices are low, you may not get the best return on your investment.
3. Landlord responsibilities: Being a landlord requires time and effort to find and screen tenants, manage repairs and maintenance, and handle any legal issues that may arise. If you are not prepared to take on these responsibilities, then renting out your property may not be the best option for you.
4. Tax implications: Selling your property may result in capital gains taxes, while renting out your property can provide tax benefits such as deductions for mortgage interest, property taxes, and depreciation.
5. Future plans: Consider your future plans and whether you need the equity from the sale of your property for a down payment on your new home.

Based on the information provided, it seems like renting out your property may be a profitable option. The estimated rental income is higher than your mortgage payments, and you have no immediate need for the equity from the sale. However, you should also consider the other factors mentioned above and weigh the pros and cons of each option.

Hi Gabe, and thank you for your service! I would recommend reaching out to a qualified real estate agent. They will be game changers in your search, and you can learn from their market knowledge. From there, you want to get connected with a suitable lender. What you should look for all depends on your goals. Are you looking to house hack? Rent by the room? Air BnB later? Rent the property out after you move out? I would suggest the first start by answering these questions and asking about your goal. Then share this with your real estate agent and have them help you set the criteria to meet your goals best.

I would recommend increasing rents but not right up to the market rate. Increasing their rent to $2,100 would likely lead to them leaving. But if you increase rent by $100 or so this will allow you to cash flow and keep your tenants. 

Recommend getting a home inspection even with a new build! A new build doesn't mean it was a good build. Being there for the inspection will teach you more about your home and what to look for in the future. 

Hi Mario, 

We AIM to achieve $250 a door for our clients and us as investors. However, with rates being up and pricing still climbing here in Cleveland, achieving this has been hard and harder.