All Forum Posts by: Joe Liu

Thanks everyone!!

Is there a way around the PAL as an investor who maybe just purchased their first investment property, both husband and wife work a w2 job, make $200k+ so the PAL doesn't give them any benefit, but the plan is to keep buying more properties and grow the porfolio? Seems like they won't really get any tax benefits in the current example but could they not create an LLC of some sort to try and create a work around 'loss' against their w2 income without being REP? Thanks!

Hi Kislay, is there a way around the PAL as an investor who maybe just purchased their first investment property, both husband and wife work a w2 job, make $200k+ so the PAL doesn't give them any benefit, but the plan is to keep buying more properties and grow the porfolio? Seems like they won't really get any tax benefits in the current example but could they not create an LLC of some sort to try and create a work around 'loss' against their w2 income without being REP? Thanks!

Hey James, on a C- class and below tenants, how often are you seeing tenants that don't pay and need to be evicted? Also, if you do section 8, do you need to pay some or most of the utilities? 

I just had a local colleague of mine mention Huntsville as well. I'm definitely planning on visiting this year. What was it that put Huntsville on your radar? I will let you know if end up getting anything over there and happy to share my experience with the PM, agent etc. For Cleveland, did you pick up a multifamily or a sfr or a 2+ unit? I guess the landlord pays some or most of the utilities which eats up quite a bit of the perceived cash flow. 

Hey Austin, are you investing in Cleveland or any other areas? Have you found other cities to be better? Jacksonville was one that my brother is heavily considering but he's going after the 1% rule with future appreciation. Also, when you are flying into a new city to check it out, any tips on what you are looking for when you visit? I am trying to line up a meeting with a PM, agent/wholesaler to see some houses. Driving a few A, B, C, D areas and after that, just being a tourist. Do any of you guys go beyond that to meet with contractors as well, investment groups, etc? 

Hi guys, I am an out of state investor and have been digging into Cleveland's market. Just wanted to get some insight from others who may have invested in the area and figure out what I am missing. Seems like you can pick up a SFR for $40-50k and get $800-850 in rents which is about the 2% rule. However, I see a huge chunk of inventory in this price range which seems too good to be true. So what am I missing?

My own homework - 

- An abundance of inventory at this price

- High property taxes

- High rents for the price

- Houses are all early 1900s

- Won't get much or any appreciation 

- The unemployment rate is high - 10%!

- POS fixes in some areas

Questions I still have -

What is the rental vacancy rate roughly?

What is the average amount of time it takes to rent out one of these SFR?

If I need to sell, how many days on average does the home sit?

What are some pitfalls some investors are seeing? I am only looking at A, B and C neighborhoods. Based on those prices, seeing a lot of C and maybe some B- areas. 

Any links to future development or anything coming into Cleveland that might help with jobs or appreciation?

With the houses being in the early 1900s, what kind of maintenance are you typically seeing each year? Besides the roof, electrical and HVAC, any other large items?

Just trying to figure out what I don't know that might be obvious to someone local or something I should know before purchasing in this market. 

I've been looking at Jacksonville as well. What kind of returns are you seeing there? 

Lots of great tips in here. I am seeing Nashville and KC quite a bit. I know Nashville had quite a bit of growth but the house prices seem to have jumped quite a bit as well. Kansas City seems to have 1000s of houses under $100k and quite a bit of multiplexes on the market. Anyone have an example of the cash flow they are seeing in KC or Nashville?