All Forum Posts by: Jad Boudiab

@Elise Keshock @Richard Hislop @Brad Nowak DM me for Cleveland connections. We have a wide vendor network under our PM division, you can interview and vet to see if there's a fit. Cheers.

 Keep your eye on your cash machine. Keep selling solar, ride out the wave until the market gets too saturated where you're at, then see if another market opens up. Then funnel what you see fit into cash flowing RE.

Going out of state is not a bad play here, you just need the right team on the ground. DM me if you want some references.

@Joshua Jones fair enough, good call for now. Good luck with your journey.

 Joshua, where are you buying this one? I recommend you find a third party, an experienced local agent or a real estate attorney that understands that market well, and get a second point of view on the deal. The more insight you can get on this from people that are NOT the wholesaler who's incentivized to sell you the deal, the better.

You can get an SFR in B areas for this price point, yes. You can also get an SFR in C areas for less, around $100k right now, that would rent around $1,250/mo. This is as of Aug 2023 Cleveland market.

Both should prove more profitable in the long-term compared to C area MF, and to your comment about hiring a PM, this is based on real data from my PM portfolio. That's not to say that a MF investor can't be profitable, we have many of that, but there's a clear distinction between performance of MF in B vs C areas. C area MF does ok when you fully renovate and harden up the unit.

A rental investor's biggest cost is actually vacancy and turnovers, if you can minimize that by being in SFR assets that attract less transient and more long-term tenants, you should realize consistent returns with less bumps along the way.

 If this is in Cleveland proper, you will need to call the electric company for a service order number, then hire a licensed electrician to pull a permit and submit the SO# with the permit. The electrician would handle calling out the inspector after inspecting and certifying themselves. Takes 2-3 weeks for this whole process.

 Shoot me a DM, happy to connect you with our Cleveland PM team. Every client gets a direct point of contact who can call / text / email same-day.

 Having dealt with hundreds and currently manage several hundred units for out of state investors I would highly urge you to reconsider your strategy. SFRs outperform MF (duplex-quad) in C areas unless you renovate your units to B quality in C areas and attract better tenants.

Multi-family only outperforms in B areas or better, unless you are local or heavily involved thus finding ways to control more factors.

SFRs average out to have longer tenancies, which decrease your largest expense - vacancy (and turnover repairs). C tenants in MF are paying under $900 in rent, which doesn't necessarily put them in the top earner's bracket nor easiest tenants to deal with.

Can't speak for the other areas mentioned, but the price points you're looking at in Cleveland will not land you quality multifamily (maybe a duplex with some elbow grease) in quality B areas. You will likely be in C, to which if you do, I recommend buying, renovated the units to be nicer than the average C unit condition in that area, then screening for the best tenants you can source.

Try Express Pest Control, easy to find on Google. I'm not sure if they're still going to East Cleveland, but they've done a ton of work for us in the past on both sides of town and may be able to help.

 @Eva Chora my guess is you're bleeding out due to maintenance and turnovers.

On the bright side, turnovers are a good reset, it's a good time to properly inspect a unit and prep it for a new resident. I would agree with @James Maradits here and say that your level of rehab directly impacts the length of time the unit sits on the market, the quality of the renter it attracts, and the rent amount you achieve. This market is no different. Once occupied, your PM team should have a renewal / retention program in place to try and keep your residents in the units for at least two years, and longer.

Now, I would advise a thorough inspection to help you assess the condition, followed by cosmetic updates with the unit turn, and even addressing the items that are constantly costing you money - leaky faucets, drains, HVAC servicing. If a unit is occupied and the repairs are non-essential, I would ask the PM to hold off on them and only focus on items you're responsible for as a landlord. If the repairs are for damages caused by the tenant, your PM should be billing those repairs to the tenants.

If the inspections show far too many repairs are needed, I would engage a real estate professional to give you an idea of valuation and net proceeds, to assess whether you should sell.

Happy to intro you with our PM and/or realty team to see if they can help. You will want to communicate clear expectations with whomever you deal with on the situation, the state of the portfolio, and your desired outcome. Without knowing the exact location of the two Cleveland properties, I know the two zip codes should be producing results, there's plenty of rental demand, so long as you pay attention to your maintenance and tenant retention.