All Forum Posts by: John Koster

1.  The Cleveland area is quite diverse and can vary block to block in certain areas.

2.  One month is reasonable with quality management and a quality property.

3. Issues  depend on the quality of tenant, neighborhood and management.  You can get great results in most areas, but also bad results.

Any two bedroom in Cleveland under $600 is generally not in a desirable neighborhood.  C neighborhoods are generally commanding $700 and above for 2 bedroom duplexes.

Hope that helps!

I am no expert, but this is what I know.  Costs can vary widely depending on the coverage you get.   Levels of liability, replacement cost, and deductibles, etc, are all variable depending on the condition/area of the house.  Some banks are strict with what they want covered, while others are a little more lax.  My cheapest coverage is $585 for the year and my most expensive is $1081.   I have a $615/yr policy on a CH house, and I believe that is for 300000/600000 liability with 80% replacement cost coverage?  Not sure off the top of my head.   I usually budget for $65 or $70/month for insurance.   

@Tim Palacio Just FYI, we are having a meet up tomorrow night in West Hollywood for investors interested in the Cleveland market.  We usually have a good turn out of 15-30 people.  You can find the details in the "marketplace" section of BP.  Or hit me up with a private message if you can't find it.

I would definitely be interested.   

West Park and Parma are the easiest ereas to find qualified tenants (from your list).   Old Brooklyn & Euclid less so, but still pretty easy.

Los Angeles investors who invest in Cleveland are meeting again for happy hour to talk real estate! Join us if you want to mingle with other new and experienced investors. This is just an informal hang out. No presentations will be given.  See you there!  @Shiva Bhaskar @Sammy Lyon

February 5th  6:00-9:00 PM

EP & LP Rooftop Bar

603 N. La Cienega West Hollywood, CA 90069

Rentometer is a pretty good resource.  

I would take out an amount that will still allow the property to cash flow.  This insures that the property will always be an asset, rather than a liability.    Losing a few bucks every month might be okay in an appreciating market, but imagine losing money every month after the market turns and starts to depreciate.  Not good.

While some lenders are not big players, and may not have many references, that answer is strange.  How hard is it to ask a couple of your clients permission to use them as a reference?  Most companies exercise and encourage that.  I believe you are thinking right.  No bueno.  

@Lucas A Davidson Some banks consider investors as "risks" until they have a few properties stabilized and/or a few years of experience. They can also then start to consider you more of a risk when you start to approach the 10 loan mark or your DTI approaches their limits. I have heard varying answers about this, so it varies from bank to bank. For your reference, I am closing on a $70K delayed financing of a property that is valued at 95K and I am getting a 30 year 5.0% rate. I currently have 4 conventional loans and a 745 credit score. Shop around, you can definitely get a 30 year loan.