All Forum Posts by: Joseph R Fornwalt

@Tim Herman thanks for taking the time and providing your insight.

@Tim Herman Focusing on Lakewood

I'm seeing recently sold duplexes in this area for 170k-210k for a 4bed/2bath. These are mostly 100year old homes.

20% down

5%closing costs

Vacancy 8%

Maintenance 10%

Cap ex 10%

Water/sewer. $100/mo/unit

Taxes: referencing the county assessors website range anywhere between 3-4k annually

Mortgage ins. 1%

Rental income: 900/mo per unit...conservative. have seen as high as 1250/mo

No other income

No upfront rehab upon purchase

I dont want to not be conservative on rent and possibly fluff the numbers, but even so, I'm not able to make these work unless it's a 130k or less purchase price which I'm not seeing as far as recent units sold

@Dan Travieso thanks for the advice, I had a decent amount of research already done and actually reached out to a previous landlord who I, as a renter, had a good experience with....she was happy to provide the attorney she used along with other references for accountants, handymen, and contractors.

Buy and hold investor in the cleveland area, looking primarily at lakewood, parma, berea, fairview park. I focus on duplexes in lakewood but have looked at other sfr in these other areas, and it doesn't matter how I break it down but I cant even come close to making the numbers work know any of these markets. I'm talking negative monthly cashflow upward of -100/month and coc returns under 8%. I know people are making it happen in these areas so I have to be miscalculating somewhere. I've been looking g and analyzing consistently for about 14 months now. I want 10% coc with $100 a door. Interested in owner occupying one unit of a duplex. Any insight would be of great value.

I am aware that BP offers, for purchase, legally reviewed landlord forms to members. With this being said, I still am looking for references for a local lawyer or service serving Cleveland's west side to review such forms prior to use. I have also researched local city sites for their references and sample forms and templates as a starting point. Any thoughts/recommendations?

@Alex Deacon @Jonathan Twombly @Mike Dymski @Ivan Barratt Thank you all for the replies. Im still very much in a self education phase, not that I feel that will ever end, but still a little ways out from being ready to make my first real estate purchase. However, I have started to think about how I would like to grow after getting my first deal or two done. Im currently a full time registered nurse and have a few years worth of professional relationships established with multiple physicians and have begun to look at this as a potential opportunity. Something I would probably need to seek out legal advice on, but its something Im starting to wonder that if utilized properly could be a "something of value" that I can bring to the table. Now the ins and outs of making that happen, well I still have to get some experience and dont want to get too far ahead of myself. Thanks for the perspectives.

So Id like to hear from some people that have syndicated or have raised capital to fund deals that they've either found or created. I understand that having a piece of real estate, where the numbers work, is key to having a good deal and not to short sight other components such as property management, contractors, etc... But I'd like some insight on how valuable having or creating a network of high income producing investors can be. Is being the individual with this network of investors a valuable component to a team? Long story short, is there value in not having a deal but having investors? Or do those of you having the deals find there is no need for what may be considered a middle man? Thanks!

@Benjamin Williams Another thing to consider is the "life" of your credits. They may have a shelf life of a few years before they expire, meaning you could put your schooling on hold and pursue other options, and if for whatever reason you want to come back, be able to do so without having to start all over. Just make sure to verify what your options are before you do so with the school or your programs guidance counselor. No sense of burning this bridge and all the work youve already accomplished. Also, and maybe your area is different, but my county's community college cost per credit hour isn't anything that cant be paid off in a relatively short period of time. So unless I'm not understanding correctly, it doesn't seem like you'll be staring down the barrel of a $15-20k student loan debt repayment process requiring large monthly payments, but even if you are there are income based repayment plans that should allow you some flexibility, although that is an entirely personal and individual specific process based on your finances. Hope this helps.

@Wayne Brooks Thanks for the response. So is it then a separate process for pre-foreclosure and auction? And if foreclosures truly are banks looking to part with the property and clean up their books, why aren't the majority of people buying foreclosures vs typical mls listings? Is the assumption that there is inherently more risk in a foreclosed property inaccurate? Trying to make sense of this. Do you have any books, articles, or material you would recommend on the topic?

So my initial REI strategy/goal targeted multi family properties. However, without any capital, I've started to think I need to change my strategy to at least get started because the multi family market where I'm located is competitive. There seems to be a large amount of SFR available though at less competitive pricing. Currently I'm renting, and am starting to consider buying a place that I can place some sweat equity in, in hopes for a profitable ARV. All things considered, there seems to be plenty of opportunities to purchase that will be cheaper per month than what I'm paying to rent. I like to view this essentially as "cash flow savings". With all that being said, there seems to be a lot of pull towards foreclosed homes. What do I need to know about these types of properties? Can they be financed? Can a contingent offer be made on inspection or are they typically as is? I have plenty to research on the topic and am hoping this can serve as part of that process. Thanks