All Forum Posts by: Jad Boudiab

Originally posted by @Justin R.:

Im willing to give a few ROI for higher quality tenants. Maximum ROI = Maximum Headache (typically.) How high does the one percent rule climb in the greater Cleveland area? Could a 160k home produce 1600 gross rents?

Do you suggest any one stop shops (REA,Construction,Prop Mgnmnt) in this area that specialize in investors? Im weary of many of these companies due to their inflated pro forma, and over priced management fees. 

Sunny is correct, your $100k double should bring in rents of $1,400-1,600 per month. If you're not around the 1.5% mark for a duplex, you're either paying too much or are investing in an A grade neighborhood which always bring lower returns but higher quality tenants.

@Matthew Augustine don't mean to self promote here, but this will help get the point across.

I'm not recommending you jump into a market, hire an agent, google a property manager, and call it a day. Rather take your time to find local experts to help you find what you're looking for. Screening is not only for tenants, but for business partners alike. Search for reviews and ask about the experiences of everyone who will be apart of your on the ground team. Many out of state investors are comfortable working with us at Holton Wise simply because of our track record. We may not be the perfect fit for everyone's plans, but hey that's a start. You'll need the right agent who can handle investment properties and thinks like an investor. You'll need an established property manager who has presence in the market. This one is more tricky without connections, but you'll need a local contractor whom you can trust to do the work and do it correctly.

There's no other way of going about investing out of state that will make sense, you have to build a team, and how you go about choosing the team will definitely affect your bottom line.

@Justin R. a $100k SFR will not bring you optimum returns. You'll find Parma doubles in the 95-120k price range with cash on cash returns between 8 and 10 percent with 8% vacancy and 10% for CapEx and Maintenance. Parma provides a rare mix of high tenant quality as well as solid returns.

For a single family to make sense, you'll need to be purchasing in the 60-80k price point, which too is achievable in Parma.

Adam, welcome to the site. I saw Strongsville and couldn't help but reach out. I'm down the road in Middleburg Heights. House hacking is a great way to get started, your rental income covers a nice portion of the expenses. You'll also get great experience as a landlord, make sure to screen properly and lay down the law when you need to. Feel free to reach out when you're back in Cleveland.