All Forum Posts by: James Seed

TLDR: Potential Robber/Assaulter tried to break into houses (including mine) by yelling for help and banging on doors this morning (and has done it before). Now I want out of my house/neighborhood but feel like a failure if I do and don’t know where to go. Don’t want to sell or move because I will most likely lose money and I love the house.

So to kick the new year off right, some random guy was banging on all the doors in my neighborhood about 20 minutes before I was getting up for work. He was yelling “Please somebody help me!” but I recognized the voice as it was the same one that did it roughly 5-6 months ago. So I deduced that it is a scam to trick people into being robbed/assaulted.

My neighbor got his car broken into about a month or 2 after I bought my house but I passed it off as him having a really nice car and people targeting it. People in the next town over which is nicer than the area I live in complain about car break ins so I didn’t think much of it. 

And when the guy was running around the first time I admit I was a bit frightened but more confused. I’ve also had drunk people try to break in my apartment during college.

After this morning though, I’m just scared it will keep happening and I want to move ASAP but love the house and will probably lose money if I try to sell. 

I’ve planned and worked really hard to get my student loans taken care of, get my credit up and buy my first house. Now my plan seems to be crumbling and going backwards.

I was planning on buying a duplex in Lakewood this year but felt I had time. There aren’t that many available and they are more expensive that I find reasonable.

Now I am thinking about just getting another SFH farther out where I know it's safer but I feel rushed, slightly trapped, and humiliated if I tell friends/family because RE investing is all I talk about.

I’m not really sure where to go, I don’t want to/am not ready to move yet but I’m scared to stay.

I suppose I could move back to my parents and try and rent the home or sell it but it would be incredibly embarrassing.
 
I knew the neighborhood wasn’t the best but didn’t think it was that bad either. Had people tell me they felt alright, people walk their dogs, decent cars, a couple screen doors with bars but not many.

Anyway, any advice would be helpful!

@Tom Shallcross Thank you very much!

I bought a SFH at the beginning of this year with a conventional 5% down loan. I have to stay in it for 12 months.

I'd like to move into a duplex or triplex instead to keep my personal space and keep the SFH as soon as possible or by the end of next year.

Would I be able get another conventional loan where I'd be able to stay in the duplex/triplex and keep my SFH to rent.

Would I have to replace the conventional loan to qualify for another conventional owner-occupied?

I would be grateful for any advice on the transition.

@Mo Weis

No FHA sadly. Even though I've never missed a payment on either of my credit cards that i've had for years, the government student loans ruined my credit. I couldn't find work for 2 years after I graduated and no one told me you could defer payments or arrange payment plans. I'm in talks now with the agency and have been making regular payments. It's just a matter of time before my score increases but i'm eager to get started now.

Thanks for the NACA tip!

@Thomas Staub

@Brandon Carriere

Birdtown is part of Lakewood but a little more blue collar. It's the east side which is not as nice as the center and west but still not a bad location. Ideally I am trying to get started in REI with a house hack in Lakewood but am having a difficult time due to the fact I just can't qualify for conventional loans.

Overall It is hard to go wrong in Lakewood as it is popular with people in my age range (20-30s) with lots of nice restaurants and bars but make sure if you are looking on the South East side towards the Cleveland border you don't overpay, chances are you wont be able to rent for as much as the rest, assuming that's your goal. Properties are getting snatched up really fast so you need to really be on the ball, or at least that is my experience. Most people are white collar employees.

I personally don't like the Cudell area except for the homes on West Blvd or near. It's weird to me how you cross south of 90 and go onto to Denison how quickly it gets rougher.

Old Brooklyn is an okay area, definitely more working class but less crime as far as I know though i've heard some stories. I was told their downtown area received a small grant for revitalization. A friend of mine who has experience with REI invests there and I am looking for something as well. Homes are cheaper and rent for less than Lakewood.

Tremont is also an area I don't like but it is popular with people in 20s-30s. There are some nice restaurants and bars in the area but overall it's not for me. For what it's worth my cousin and his wife rent a home there with their child, work as nurses and seem to like it.

Anyway I'm a newbie at REI so take my thoughts for what you will.

 Good Luck!

@Rebecca Arko

Full disclosure, I also live in Cleveland, am new to REI and am still looking for my first deal so take my opinion for what you will.

Here is my situation. I am currently 33, single and employed full time with an ambitious goal of financial freedom before I turn 40.

I am currently paying $700/month on my government student loans. At my current income and expenses it will take me roughly 8-10 years to pay them off. I work every Saturday, holiday and Sunday(when allowed). Student loans are also my only debt until my car eventually breaks down and I have to get another used vehicle.

If I house hack and can add $200-300 more to my income every month then I now have created extra options...

I can work less and enjoy life more or I can increase the student loan payment rate to 900-1000/month (potentially increasing repayment ability by 25-50%!) or I can work towards finding more properties to invest in to make more.

Even should hacking mean I break even, I’m still gaining equity that someone is paying for (in theory). I also am enjoying a better standard of living.

If I only buy 1 duplex a year for 5 years in a row that cash flows at a benchmark of $100 per door as Mr. Turner and Mr. Leighbovich (probably spelled this incorrectly) have suggested then I am now making $1000 income a month.

At the 5 year mark I am potentially earning more than I would if I were to spend every dime I had to stop paying $700/month in SL payments and in nearly half the amount of time! And I’m building equity (icing on the cake).

Granted there are some assumptions made (which I think are entirely reasonable) and even though I am not a math major, it makes sense to me to invest.

If I were you, I would consider how fast I could pay off my loans versus how quickly I could slowly, cautiously build cashflow. Weigh the variables and decide your path then follow.

I don’t even necessarily think there is a wrong choice as long as you have developed good financial habits. Building investments and paying off bad debt are both smart choices even if one takes longer than the other.

Hope I helped!

@Irina Belkofer I am currently living on the west side in Edgewater. I'd like to find something preferably in Lakewood, Kamm's Corner, West Park or Ohio City, potentially Rocky River. Since I work downtown I want to keep the commute as short as possible as I was commuting 3 hours a day for 2 and half years at my previous employer.

I don't have much capital so i'm hard pressed to pay cash. I'm sure my income would be enough to qualify for a mortgage. I have no debt other than student loans but unfortunately they have damaged my credit which I am trying to repair. I fell on hard times after graduating and am only recently in a position to recover and it's why i'm hungry for a future. Conventional financing is unlikely for the time being. Currently I am looking at seller/owner financing.

@Aaron Howell Thank you for the warm welcome! That's exactly my plan! Live in one unit and rent out whatever I can. I definitely love Cleveland!

Hello everyone out there in the BiggerPockets community!

My name is James, i'm 33 years old living in Cleveland and I have developed a real fire inside myself! Over the last few years i've really developed an ambition to push myself in life to become better and better. I haven't even realized it until the last year. 

5 years ago I was having a very difficult time post graduation. I'd graduated but was just unable to find work for over a year.  An opportunity to live in Hawaii presented itself and I decided to make a go of it instead of playing it safe and comfortable, if one can call where I was safe and comfortable.  While Hawaii didn't work out, i've since lost 90lbs, converted to Catholicism, found somewhat enjoyable full time employment that lets me put in a generous amount of overtime (Last week I worked 65 hours and on average 55+ hours a week, I haven't had a day off in months), started to tackle overwhelming student loan debt, volunteer, well...you get the idea. 

Like many on here, I've read Rich Dad Poor Dad when I was in my early 20s and have rediscovered the original inspiration it gave me for real estate. I am voraciously listening to as many financial podcasts as possible which is how I discovered BiggerPockets. My plan is to start house hacking with smaller multifamily and transition into apartment complexes. I'm a buy and hold type of guy or rather I plan to be. 

I'm hungry for real estate investing. Hungry for a deal. I hope to see you around and maybe we can help one another in the future. I'd love to hear your story.