All Forum Posts by: Matthew Jure

Welcome Austin!

@Rich Rodman

Birdtown is definitely trending in the right direction with all the redevelopment that is going on there. Locally, there are some experienced investors I speak with that say Birdtown is the last place in Lakewood that you can find a really good deal. 

 Hi James - great advice. Adjusting my spreadsheet now :)

@Brandon Sturgill

Great point. I include vacancy of 8.3% (1/12 months). I'm expecting to spend at least $4-6k on any property I get because most don't have central air and the houses I've looked at always need some type of upgrade. I'd like to find a property that I can renovate up front. I'll send you the spreadsheet I made. I could use an experienced set of eyes look at how I evaluate properties. 

@Henry LiChi

Nice I'm lowering my maintenance and capex. I figured that was my problem. I've been ultra conservative to make sure I cash flow. I saw you have a 10 unit and a couple 2 units greater CLE. Do you change your maintenance and capex % based on whether it is an apartment building vs 2 family house?

I would think you would spend a little less on capex since everything is under 1 roof. I would assume maintenance would stay the same. 

Hi BP community! I am ready to buy a double+ in Lakewood Ohio, but it seems that out of pocket ROI seems low (~5-6%) and I am curious what others are estimating as expenses. The houses are all about 100 years old so I estimate my maintenance costs at 15% of my gross rents (GSI). Also, I don't include mortgage payments in my calculation because I'm paying cash. How are others estimating expenses in the Cleveland area for something similar?

Out of pocket ROI = (all annual expenses + annual capex) / all cash invested

Here's my expense breakdown on a double: 

Maintenance: 15% of GSI

Property Management: 10%

Water/Sewer/Garbage: $150/mo 

Insurance: $65/mo

Capex: 6% of GSI

Taxes: County website

Any insight is appreciated!

Thank you Basit and Mitch for your advice! I am looking for someone to file my taxes, but also help me set up financial systems, provide advice on reducing tax liability, and provide advice regarding my future real estate plans. I set up the key word alerts and I plan to reach out to some people. I also plan to attend a local REIA and ask around.

Does anyone know where I can find a CPA that specializes in real estate in the Cleveland area? The CPA business must be booming in CLE because I am having a very hard time even finding a CPA that will meet with me. 

My name is Matt and I am new to real estate and own a duplex in Lakewood Ohio (Cleveland area) that purchased in mid 2013. I am slowly making improvements to my duplex by working on it myself, and learning how to do that, as a live in one of the units. I currently rent the other unit to family so I suppose I am a quasi-landlord/investor, but it is giving me good practice for when I get my first "real" tenants - yes they pay rent. I hold a bachelor of science in something completely unrelated to real estate and have a full-time job working in a hospital. I read (really listen) to 2-3 books a month on real estate, personal finance, and time management. I also listen to the BP podcasts, I've recently started attending a local REIA, and I love to learn. I am interested in improving myself every day and that includes education with good habits. I like to think outside the box and I'm used to going against the flow.

My goal is to purchase enough properties to be able to live on the generated cash flow and I'm trying to make the right decisions early to be successful over time. I am currently developing a system for my business while paying off debt and piling cash so I can continue to invest. I am considering obtaining my real estate license, but I'm not convinced that I should invest in obtaining one - yet. I am interested in buying a 6+ unit property for my next purchase.