All Forum Posts by: Kyle Isenberg

How are investors funding Brrrr deals when a property purchase price is under $50k and rehab plus purchase price is under $75k. I find that a lot of companies wont loan on a property with values that low. So if your in an area that has extremely low prices how can you get funding for the deal?

Looking for a property manager that works in Lorain Ohio. We have a duplex that was remodeled and almost ready for renters. I have interviewed a couple in the surrounding areas but id like to talk to a few more. Does anyone have any they would refer? 

Quote from @Wesley W.:

Quote from @Kyle Isenberg:

I am friends with a local investor that has a couple properties and he started paying everyones heat after a tenant left for a week and turned the heat off to conserve fuel oil. It ended up freezing pipes and caused an expensive rehab. I’m sure most tenants are not that careless but was just wondering if there were a way around that being an issue

Indeed, there is:

5. UTILITIES: Water and sewer service and curbside trash removal are provided to you. You must obtain and pay for all other utilities. We are not liable for interruption or malfunction in service. You may not occupy your apartment without electric service except during brief interruptions beyond your control. You must not overload electrical circuits. Only two electrically operated items may be plugged in to any electrical receptacle. Electric and natural gas service may not be discontinued while you are in possession of your unit. A minimum temperature of 55 oF must be maintained inside your Rental Unit at all times; damage to the Premises resulting from you not doing so is your sole responsibility.

Thats fantastic! I never thought of making a minimum temperature a requirement in the lease. Thank you for that!

Quote from @Wesley W.:

Quote from @Kyle Isenberg:

Quote from @Wesley W.:

My portfolio consists of C-class apartments, and I almost exclusively use gas-fired "room furnaces."  They are about 1K each (or used to be before all this silliness) and will heat up an 850 sq ft rental unit pretty nicely.  They don't have many parts that can fail, so they are virtually tenant-proof.  If you avoid the "direct vent" models, they even work when the power goes out (or gets shut off in a vacant unit).  I've been very happy with them.

I don't provide AC, but tenants use their own window or portable units on pre-designated circuits.

Do you worry that the tenants wont pay the gas bill to keep them going? I feel like people tend to look at things that directly effect their daily life as more important. (They tend to favor paying an electric bill so they can watch tv or use the wifi) 

I'm not sure I understand your concern.  As the room furnaces are the only source of heat, if they didn't pay the gas bill they would literally freeze to death (very little hyperbole).  I'd say that's sufficient incentive to stay current on their utility bill. 

Alternatively, they could also turn them off to "save money", with unfortunately the same gruesome result...

I am friends with a local investor that has a couple properties and he started paying everyones heat after a tenant left for a week and turned the heat off to conserve fuel oil. It ended up freezing pipes and caused an expensive rehab. I’m sure most tenants are not that careless but was just wondering if there were a way around that being an issue

Quote from @Wesley W.:

My portfolio consists of C-class apartments, and I almost exclusively use gas-fired "room furnaces."  They are about 1K each (or used to be before all this silliness) and will heat up an 850 sq ft rental unit pretty nicely.  They don't have many parts that can fail, so they are virtually tenant-proof.  If you avoid the "direct vent" models, they even work when the power goes out (or gets shut off in a vacant unit).  I've been very happy with them.

I don't provide AC, but tenants use their own window or portable units on pre-designated circuits.

Do you worry that the tenants wont pay the gas bill to keep them going? I feel like people tend to look at things that directly effect their daily life as more important. (They tend to favor paying an electric bill so they can watch tv or use the wifi) 

Quote from @Austin F.:

Electric because its easy to sub-meter. 

What if it is on a SFH? Then there is no need to sub meter? Still stick with electric?

Just a general question to see what everyone thinks…

What would be your choice for heating a rental property? I feel like central air is a great investment just for the sake of ease of use for a tenant. It also gives us more piece of mind knowing the house will probably not be un heated due to running out of oil, propane, or other alternatives. Most tenants seem like they keep up with their electric bills so they still have tv, lights, internet. 

Bonus is that if the central air has a/c and heat then it eliminates the potential of people breaking window frames or windows in general by putting window units in and out. 

What is everyones thoughts on this. Assume the property is a SFH or duplex.

Quote from @James Wise:

Quote from @Kyle Isenberg:

Good afternoon everyone! Hope everyone is having a great day. I would like to introduce myself. My name is Kyle and my wife and I live in central Pennsylvania with our little boy! We took a liking to the Cleveland, Ohio area a few years ago. We have decided our long term goal is to move to Cleveland and move our businesses there as well. We are starting to look at investment properties outside of the city in hopes to find something by the end of the year. We are just getting started in real estate outside of renting our first home for 6 months and then selling it. Reading a lot of posts on here blows my mind!! This website is astonishing with all the helpful folks willing to take time out of their days to help starting investors out.

So as an opening question for those who have followed along: looking at short term rental, what are some good areas to look at outside of the city that would be good starting points for us to get our foot in the door of Cleveland?

Thanks everyone for all the helpful advice on the website and I look forward to reading the forums every day! 

Did someone say Cleveland?

We're doing really well with short term rentals in Cleveland. But you need to know what's what when buying over here. Check out The Ultimate Guide to Grading Cleveland Neighborhoods. I see so many out of state investors jump into Cleveland without understanding why some parts of town are a 3rd of the price of others. This guide will help with that. Should save you tons of money if used correctly, especially when going with short term rentals.

Good luck out there.

I really appreciate that! Thank you 

Quote from @Nicholas Coulter:

@Kyle Isenberg I would look to attend a local meet up in that area to get a better idea of who has gotten property in those areas. Second I would connect with an investor friendly agent preferably one that owns property in that area! You can do that here on the site. 

 I appreciate the feedback. I have called a couple realtors just from searches on google and they seem super nice to talk too and helpful answering questions, but then they say they will email properties and I never get anything. I have followed up with them multiple times but I have stopped following up at this point because it just feels like they are no longer interested. I suppose I could try a few others and see if I can get anyone to actually want to work with someone out of state!

Thanks! 

Good afternoon everyone! Hope everyone is having a great day. I would like to introduce myself. My name is Kyle and my wife and I live in central Pennsylvania with our little boy! We took a liking to the Cleveland, Ohio area a few years ago. We have decided our long term goal is to move to Cleveland and move our businesses there as well. We are starting to look at investment properties outside of the city in hopes to find something by the end of the year. We are just getting started in real estate outside of renting our first home for 6 months and then selling it. Reading a lot of posts on here blows my mind!! This website is astonishing with all the helpful folks willing to take time out of their days to help starting investors out.

So as an opening question for those who have followed along: looking at short term rental, what are some good areas to look at outside of the city that would be good starting points for us to get our foot in the door of Cleveland?

Thanks everyone for all the helpful advice on the website and I look forward to reading the forums every day!