All Forum Posts by: John Koster

I'm in the east valley.

Any day works.

Once a month.

Holton Wise and the deals are quite real. 

The 10K house is on a hill in between a C-/D area and a B area  and it has a septic issue.  It is not surprising that a hood adjacent home with septic issues is going that low.  A quick perusal online will show homes without septic issues nearby going for 30-50K.   

The apartment complex is on a busy street in an okay C neighborhood.   25K per unit on an advertised "value add" isn't crazy in that area.

I agree aggressive marketing can be annoying, but hitting "delete" and "unsubscribe" usually works for me when I receive something I'm not interested in.

Cheers

I have used MB Financial and Wells Fargo in the last two years.  4.75-5.0%.  Both will go sub 50K for loans.

That is a C/C- area.  Check out @James Wise 's  "The Ultimate Guide to Grading Cleveland Neighborhoods.  

Hi Ethan,

I live in LA.  Grew up in, and invest in Cleveland.  Feel free to DM me if you want to talk about the market.

John

Hi Jenelle, 

@James Wise @Federico Gutierrez & Nick Varner at Holton Wise know the west side of Cleveland and the investor game quite well.

I grew up in Lakewood and have a few properties in the area, so I studied up on the tax rates after realizing the stark differences between some of the suburbs.  Garfield & Shaker are above 4% while most of Cleveland is 2.86%.  Cleveland.com had a a breakdown of the different rates at the beginning of the year which I am having problems linking.    It is http://s.cleveland.com/4Ug4hcl   If that doesn't work the post was from 1/25/17....Googling it might work.  

A few notes: 

- Lakewood taxes will be more like 3.33%, but the vacancy rate will probably be lower. Lakewood is a competitive rental market.  I would factor 5-7% rather than 11%.  

- Investor loans will probably be higher than 4%, unless you plan on living in one of the units.  I have paid 4.5-5% in the last 2 years.  If 4% is an actual quote, please forward me your lender details!

- Insurance will probably be a tad higher.  $60-70.  Again, if $50 is an actual quote, please let me know.

- Property Management is generally 10%

Good luck!  77K with little rehab is a decent deal for Lakewood these days.

Andy,

Yes, @Federico Gutierrez is a knowledgable realtor at Holton Wise.  Proceed with confidence.

Hi Andy,

I am an investor from Cleveland, who now lives in California.   There are varying opinions on where Cleveland development is heading.   My opinion would be too long for a post reply so I will spare you.  I will say I am happy about my decision to invest there, but would caution those from out of state to really study the area before diving in.   To a Californian all the architecture looks the same and everything looks relatively cheap.  But there is a fine line between stable, blue collar cheap, and war zone cheap.   I can recommend the Holton-Wise Property Group for guidance on the west side.    @James Wise  has a great primer for a lay of the land.  Check out his "The Ultimate Guide to Grading Cleveland Neighborhoods" post in the forum.

@James Wise undefined