All Forum Posts by: Jake Burkons

I wanted to obtain a rental to gain passive income. The deal also assumed the lease of a tenant who has paid consistently for the past two years. However I did edit the lease after I purchased the property, and the tenant still complied.

How did you finance this deal?

All cash

Lessons learned? Challenges?

This was my first time working with a wholesaler on a deal. It definitely took some extra negotiation because I wanted to price moved down, and I knew the Wholesaler was trying to get a bigger commission. So I ended up trying to wait the wholesaler out where he then came back to me asking me if I still wanted the property and I was able to gain more leverage and negotiate the price down to what I wanted that’s cutting his commission and closing the deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The guy who gave me my insurance on the property give me a great deal.

1 Vote

Hello BP,

I want to create an LLC for my properties, however, I don't know how I should go about it. I've seen a lot of stuff online about creating an LLC in Wyoming or Vermont? Due to their liability protection and tax advantages.
Also, how would one to start this process. Is there a website that y’all recommend online that I use?

All insight would be appreciated.

2 Votes

Hey bigger pockets, I was just wondering what some older more experienced real estate investors thought about the idea of buying tax deeds. I’ve seen a lot of positive posts and information online about tax deeds but I’m sure there are some hidden negatives as well that gurus online won’t talk about.
Any advice would be greatly appreciated.

0 Votes

Hello Bigger Pockets,

I recently purchased a single family rental home in Cleveland that is under 1000sqft and built in the 1950s. Two questions

1. What coverage should I get ?

2. What insurance companies have you worked with in Ohio that you like and are reasonable?

Thank you.

0 Votes

Cleveland, Ohio

Quote from @Bob Stevens:

Quote from @Vadim F.:

Quote from @Bob Stevens:

Quote from @Vadim F.:

Quote from @Jake Burkons:

Hello Bigger Pockets,

I am currently looking for a relatively cheap(25-50k) single family home on the east side of Cleveland and surrounding suburbs. I know the home probably won't be in the nicest area however there are some decent areas in Cleveland and suburbs like Maple Heights and Euclid that I'm considering.

Do y'all have any recommendations of what areas in particular to look in?

Also is there anything in particular I should look out for when buying a home in these areas. I know crime isn't great but are there any other outlying factors that would be detrimental for an investor?

Sincerely,

Jake Burkons

You want be all in for under 50k? Thats going to be tough, unless you are going to be all cash in a warzone. I would focus on higher priced properties in 100k range or so that are already tenant occupied where you could qualify on the income they are producing already. Then you can go in at 75 LTV (MFH) on a DSCR loan.

Regarding East Cleveland, there is money being poured into the area so it becomes an extension of UC, hence be called CircleEast but that will only be the first 10 blocks or so along Euclid.

SHHHHHHH STOP telling everyone about East Cleveland, HMM wonder who told you that :)

I picked up a 7 unit right near the RTA.

Hahaha, can’t find anything out there at all. I’m going to start looking at Glenville between Superior and St Clair. You know I’m attracted to war zones lol

I know someone with 15 he wants to sell in those areas, I can make the intro,

Yeah I would love to connect with him. I sent you a private message with my phone number would love to connect more.

0 Votes

Cleveland, Ohio

Quote from @Bob Stevens:

Quote from @Jake Burkons:

Quote from @Shane Kelly:

If you're looking for a home that cheap, you're going to be priced out of Maple Heights and Euclid for sure. I'd say you'd be pressed to even find any good C- neighborhood houses for that price. With that being said, there are a select few C-/D+ areas that have some things going for them. Some are already upcoming, some I expect to be in the next few years, but just to name a few: North Collinwood/Waterloo Arts District, Fairfax, Hough, Woodhill Homes, Lee Miles, and maybe North Broadway. I do want to preface though by saying all of those areas are street by street right now and likely will be for some years to come. Having someone who really knows the blocks will be crucial to not getting a trap house in a warzone. Best of luck.

I think I will be able to find another investor who could raise our range around 75k-100k. I plan to buy my next property all out in cash with other investors while interest rates are still high and my credit is relatively low. I have been looking in the Collinwood area though because I have some friends from there (I grew up in Cleveland but recently moved to Austin) and compared to other areas of Cleveland it's not as bad. One area in Cleveland that I actually think is relatively decent is the Mount Pleasant neighborhood and the homes near Van Aken in Cleveland. I definitely see some potential there as well.

Although I have been hearing some news about a potential 122 million dollar investment in luxury apartments and business in east cleveland but i'm not sure how accurate that is. If it's true, areas near there hopefully could become profitable in years to come.

Thank you again for your support.

Sincerely,

Jake Burkons

I am buying everything I can in parts of East Cleveland. I recently picked up a 7 UNIT, across from the RTA,. Last week I locked up 7 more, Lee Harvard, better areas of Cleveland and one in Euclid, all rented for 1100- 1400, all renovated, all under 80k, each.

Is your recent action in East Cleveland due to the potential project? I want to look there but I fear that the crime is too bad and that the homes would have many issues. Have you encountered anything in particular that you have found difficult after buying these properties?

Thank you again for the insight!

0 Votes

Cleveland, Ohio

Quote from @Ariana DeStefano:

Hi Jake,

As mentioned above, you are going to be pressed to find a decent home at that price point. Lending could also be an issue unless you were planning on buying with cash. If you get closer to the $100,000 price point, you would be in better shape even if the numbers do not look as nice. Homes priced that low are typically going to be in really poor shape or in areas you may not want to be involved in.

Another piece of advice, is make sure you also get a non-biased rental estimate and opinion on the areas. Not all realtors are the same, but I have ran into a few who told out of state investors that the area is fine and up and coming. However, when we drove over to look, the homes were all boarded up and the listing photos were clearly photoshopped. If you ever need a rent estimate or opinion on a home in the area, let me know and I can do it.

Thank you for the advice and I will definitely look at some higher price points.

Lets connect on here because I probably will have some questions in the coming weeks about rent estimates and opinions on neighborhoods.

0 Votes

Cleveland, Ohio

Quote from @Shane Kelly:

Thank you again for your support.

Sincerely,

Jake Burkons

1 Vote

Cleveland, Ohio

Hello Bigger Pockets,

Do y'all have any recommendations of what areas in particular to look in?

Sincerely,

Jake Burkons

2 Votes

Cleveland, Ohio

All Forum Posts by: Jake Burkons

Jake Burkons has started 12 posts and replied 33 times.

Post: How should I go about starting my LLC

Post: My first buy and hold

Post: How should I go about starting my LLC

Post: Potentially investing in tax deeds

Post: Ohio Insurance recommendations

Post: Investing in the east side of Cleveland and suburbs

Post: Investing in the east side of Cleveland and suburbs

Post: Investing in the east side of Cleveland and suburbs

Post: Investing in the east side of Cleveland and suburbs

Post: Investing in the east side of Cleveland and suburbs