All Forum Posts by: Kyle Lewis

The odds are high. It may not be immediate though. I believe Cuyahoga county reassesses properties every 2 years. This doesn't necessarily mean the taxes will go up, just that they'll be reassessed. I typically look into the property tax and transfer records, which are all online to see what the property is currently assessed at. If I see that the property was purchased a few years ago for much less than I plan on paying, than there's a good chance that the county will see that and raise property taxes the next time they reassessed. I would also look to see what exemptions are currently on the property tax bill. Exemptions like the Homestead Exemption will go away once an investor purchase, so definitely bake that into your numbers. I'm no expert, but this has been my process. It seems to me like Cuyahoga County loves taxing investors so I always err on the side of caution with property taxes. Below is a link to the county property tax rates.

https://treasurer.cuyahogacounty.us/pdf_treasurer/en-US/2017LevyImpacts.pdf

Welcome to BP!

Welcome to BP!

Welcome to BP and best of luck to you!

Welcome to BP! and best of luck to you!

The water/sewer,  garbage and property tax expenses look very high to me.

Deal looks great to me. Good luck!

Seems reasonable to me

I've had a good experience with Holland Paving

http://www.hollandpaving.com/

Looks like a pretty good deal to me. Three other expenses I'd look out for are property manager lease up fees, utilities and CapEx. If the PM charges a full month's rent lease fee and avg tenant duration is 18 months, you're looking at $7,000/year in lease up fees. If these are all SFR, you probably won't need to worry about many utilities but definitely something to confirm by looking at lease agreements. I'm guessing that the maintenance number at $83/door/month doesn't include CapEx, so I'd make sure to factor in about the same amount for CapEx.

Also, if these are SFR, the taxes look really low. I'd look into that further.

Good luck on the deal!