All Forum Posts by: Jake Forehand

Hi all, I currently have one real estate property in Cleveland Ohio (purchased in 2019) but have largely been out of the real estate game since COVID reared it's ugly head. I am looking to gradually start buildling my team again and would appreciate solid references for the following specifically in the Cleveland, Ohio area :

- Investor friendly real estate agent

- small bank lenders/ private lenderes

- inspectors

- appraisers

- contractors

Thanks in advance, and happy hunting :)

Hey Charlene, welcome back! Happy to send over a rolodex of contacts that you can reach out to.

2 Votes

Cleveland, Ohio

Quote from @Josh Asselin:

Hello BP,

First post. First time buying an investment property. I’m 26 years old. I went to look at a 3 family home yesterday. My goal is to house hack a multi-family and then move out after 12-18 months when I am able to buy my 2nd property. 2 of the units are under lease agreements. 1 unit is vacant (which I would be living in). On the tour yesterday, my agent and I noticed some settling in the floors in the top unit (vacant). The house was built in 1890 so it has field stone foundation and we noticed some joists in the cellar like they’ve tried to temporary solve this problem. Another concern I had was the unit I’d be living in is very tight. The bathroom ceilings were so low that I may not even fit in the shower. There are a lot of pros about the property including that it would be cash flowing approx. $600 per month if I were to move out.

I guess my question is how do you know when to take risk and when not to? What types of sacrifices should I be willing to make? Or just any general advice about buying your first property would be helpful. I have also seen a lot of negative posts on here lately about the real estate industry so just need some assurance this is still a good route to go.

This is also one of the first properties I’ve toured so I don’t want to jump too soon but I also don’t want to miss out on a good deal.

Hey Josh, it seems like you are interested in real estate, but you may be a little confused. That's great, because many people never get started at all. Online research will only get you so far. If you haven't done so already, speak with several lenders. Figure out what you are pre-approved for, what they need to see from you, and what products would make the most sense for you. Did a contractor walk this property with you as well? A GC or inspector will have a better understanding of whether or not the sloping floors are an issue versus an agent. It is very commonly seen in older homes. How bad is it? Ask questions to experts in their field prior to buying anything. Walk the next property with a GC, have a conversation, and ask questions. Or just contact a bunch of them and tell them what you saw. Don't worry about missing out on good deals, just figure out ways to find more. There are a ton of properties out there. I'm happy to jump on a call with you as well. Good luck!

1 Vote

Quote from @Ross Hayes:

Hello

Do you have any general price per square foot (or other measures) that you use for general light work?

I’m defining general light work as plank flooring, painting, minor electrical, etc..

For example - is it fair to estimate flooring labor as $3/square foot?

Or a general rough number for interior painting.

I fully understand every market will be different. We’re in the Midwest. I’m just checking some of my model assumptions.

Thanks!

I agree with the other two posts above. I think it is better to connect with many GCs, find the ones you want to work with the most, and have them walk properties and provide bids for you. Using models to estimate would be great if every GC in an area charged the same amount for labor, but that is not the case. For example, some GC's may have a go-to electrician to sub out that work, but not have a great HVAC guy, and vice versa. Thus, they may charge a much different amount depending on the scope of work for a particular project. Estimating costs comes easier with experience and working with the same people multiple times. Hope this helps.

1 Vote

Quote from @Gaya Ben Simon:

Hey bigger pockets community!

I'm thrilled to begin my first fix-and-flip project in Lakewood, Cleveland.

What tips and precautions can you provide In order to succeed in this project?

For those of you who have done a fix and flip in the Lakewood area, what tips can you share to increase the ARV?

Thank you !

Congrats! Lakewood is a very competitive market. It is crucial that you pull accurate comps and have a reliable GC prior to performing this type of investing. Keep the renovation as simple as you can. Good luck!

3 Votes

Cleveland, Ohio

Quote from @Derrek J Hooyman:

I just started using the BRRR method. I bought a side by side that needed a little work. I was not as familiar then with the idea of BRRing it. However, the bathrooms were outdated. Thus I will cash out refi after I renovate the bathrooms. I have a decent understanding of flooring and painting now. The bathroom will be roughly 5k if I do the work with my dad.

However, I'm struggling to determine the costs of rehab if I would have someone do it like drywalling and more extensive BRRRs. Any advice on how to get better at estimating my rehab costs? Also are there any ways to get a better understanding of how much it will appraise for? For arv, I can look at comps. Guess I could get some connections to contractors as well/. Any advice?

Hey Derrek. I am not a GC myself, but if you are wanting to learn more about rehab costs, you should walk properties with different GC's. While doing this, ask them what they are looking for when giving a bid. You will learn a lot by doing this.

They are probably going to take measurements for flooring and drywall, count any doors that need replaced, look at what appliances need replaced, outlets, fixtures, countertops, etc. It is very common that they will subcontract out some of the more specialized work.

Reach out to a ton of contractors and filter out the ones you like best. Study prices in home improvement stores like Home Depot to get a good idea of what everything costs, and log it on a spreadsheet. You can do this online by looking at their catalog. Also study costs of roof replacements, furnaces and water heaters. Compare these numbers with the quote you are provided and you can find out what the markup is.

Pulling good comps for the property is crucial. You want to factor in location, condition, bed/bath count, and square footage. If there aren't any good comps in the area, I would move on and not take the risk.

1 Vote

Quote from @Golan Corshidi:

Hey all!

I am looking at an opportunity to invest in Cleveland, Ohio and I am looking to connect with a local property manager who has experience working with mid-term rentals.

Looking forward to connecting!

Hey Golan, I can send you some contacts. What areas are you focusing on?

1 Vote

Cleveland, Ohio

Quote from @Noah Yashinsky:

Very curious about this market, been doing some research to determine if its viable. I'd love your perspective if you invest in Cleveland! Happy to chat as well. Let me know!

Hey Noah, I like it for the value-add opportunities and high rental demand. Like any market, there are risks and you need to have the right team in place prior to buying a property or you could lose money. The people who succeed have a great team established first.

5 Votes

Cleveland, Ohio

Quote from @Bobby K.:

Looking for a Good & Reliable Contractor in the Cleveland Area...

Happy to send you some contacts. You will have the best results reaching out to as many as you can via Facebook, asking people for referrals and filtering out who you think is best. It's crucial to get right. You could lose a lot of money picking one that isn't reliable. The best ones have no issue staying busy and you'll need to reach out to them.

0 Votes

Cleveland, Ohio

Quote from @Gladys Villa:

Hi all! I am new to this community and I'm so excited to learn a lot of things! My husband and I will be ready to buy a home in the next 6 months, but we decided that we want an investment property instead. However, since we don't have any experience in rentals, we don't know if we should buy a single home and get it rented out or buy a multiplex. I feel like if we buy a multiplex, it becomes too risky with a lot of maintenance and possible vacancies. On the other hand, if the single home doesn't get rented out, we can just move in there too!

What are the things you should consider in buying your first home rental property? Thanks for all your answers!

Have you considered house hacking?

2 Votes

San Francisco, California

Quote from @Chiane Martin:

Hi everyone,

I’m an investor in Cleveland. Born and raised here. I currently have 6 doors.
I just recently bought a single family home and had a contractor tell me about making it a rooming house. 4 bedrooms, 1 bath.
Wondering does anyone have any experience with this? Pros/cons/tips? OR should I keep my original plan and section8 it.
Thanks in advance

I would definitely shy away from doing this. Many of the reasons have been outlined above. I haven't seen this pulled off.

1 Vote

Cleveland, Ohio

All Forum Posts by: Jake Forehand

Jake Forehand has started 0 posts and replied 43 times.

Post: Looking to rebuild my team

Post: First Time Investment Opportunity

Post: General Rehab Estimates

Post: first fix & flip project

Post: What are the best ways to get estimates on contractors before buying a property?

Post: Looking for Property Manager Experienced in Mid-Term Rentals In Cleveland, Ohio

Post: Curious on Cleveland OH

Post: Contractor Needed In Cleveland Area

Post: My husband and I are undecided whether Single or Multiplex Homes

Post: Rooming house help?