All Forum Posts by: Lesley Ray

Hi all,

We're currently analyzing a property in Lorain, OH. Does anyone have experience investing in Lorain vs. Cleveland? We're used to Cleveland properties so investing that far outside of the city makes me a bit nervous. Is there still a steady tenant base to choose from? Any insight would be greatly appreciated!

@Tracy Meyers where in Cleveland is it? 

@Daniel K. my agent in Cleveland said the same thing. She said it's still a seller's market and she doesn't see it changing much over the next few months. She said we may seem some prices drop in Q3/Q4 but she doesn't think it will be much.

@Jonathan K. Also happy to provide additional insight on Cleveland, as I invest long distance there as well.

@Jonathan K. Looks good overall! However I would factor in something ($5,000-$10,000) for repairs to give yourself a cushion. Unlikely that it will need absolutely nothing done.

Hi Jacob,

I am also an out of state investor who focuses on Cleveland. I grew up in Cleveland so I know the area pretty well. Happy to answer any questions you may have.

Thanks @Roni E.!

Anyone have thoughts/predictions on student housing moving forward? With higher education possibly going through a transformation with increased online learning, will there be a need for student housing in the future?

Background: house is in a decent neighborhood outside Cleveland, OH. Purchased for $9k and seller put in $50k of renovations.

Buyer to pay $4000 toward commission at lease signing and seller to pay remaining commission plus seller agent fee

Sale price of $72,000… Lease payment to be $685 month.

Lease payment to have principle reduction as if we had a note for $72,000 for 420 months @ 7.5% . $5000 down after 6 months and we will create a note and mortgage for $66,809 for 414 months.

What we are doing is giving credit for the principle reduction amount of the lease payments as if they were note payments, After 6 months, The UPB would be $71,820

$71,820 (- )$5000 down payment at signing of note and mortgage (due at end of 6 month lease to own) makes for a note of $66,820 for 414 months at 7.5% .. Monthly P&I of $451.89 plus taxes, Ins and service fee.

4 year Balloon

Buyer and seller to pay their own closing cost at time of note and mortgage

Seller to pay Ins and Property Tax during 6 month lease

So the things that have changed is the sale price has been reduced, we are crediting the principle reduction amount of the lease payment toward the purchase and the principle payment of the note has been reduced

I have a great guy! PM me