All Forum Posts by: Matthew Hermenau

@Nicholas L. Not rented yet. It is about to be listed for rent. Have engaged with a property manager and as above they take 10% monthly rent + 1 month rent up front to find a tenant.

@Eric Gerakos couldn’t have said it better. In the future I plan to just grind and pay more for the local rental opportunities here in S Florida. Like you said it’ll be more costly initially but worth it in the long run.

@Leo Ray very helpful feedback! Thank you 🙏🏻

Unfortunately, I don't plan on moving to OH anytime soon. It's a C neighborhood overall where it's relatively safe and the street is nice but not super nice. I just pulled the trigger a little too soon and at an unfortunate time with the market. But I agree with the ARM recs… that gives me anxiety in and of itself. I think I'm going to just cut my losses and do something locally.

The original intent of doing OOS in this part of OH was the low entry point price wise. I live in South Florida where the market is beastly and very difficult to enter into.

@Joseph Crunkilton purchased with an agent

@Jon A. Do you happen to know of any good resources for longterm rental templates/legal documents?

@Brittany Minocchi thank you for your tips/feedback!!

Yea it’s Cleveland. I fixed all the POS violations so that’s not the problem anymore but it was far from easy with how strict the city is. (Delayed everything 1-2 months)

I live in FL which makes this very difficult to self-manage so far away. However, I’ve found a really great handyman in the process (which is incredibly difficult to do so here).

I posted it for rent to gauge interest and it got a lot of hits right away so finding a tenant isn’t exactly the hard part. But I understand your point about section 8 tenants and will take it into consideration.

@Jon A. Thanks for your feedback! Unfortunately I’m thousand miles away and unable to self manage without it being virtual essentially. The tenant market in this part of OH needs to be hands on from what I’ve been told.

@V.G Jason my reserves are more than twice what I paid for the downpayment. So that’s not the biggest concern but I’m out of state and this has been a major headache without even renting yet

@Kevin Sobilo thanks for the feedback! Yeah I unfortunately think I bought at the peak of the market. I’ve never considered rent by room but could talk with a property manager about it and see what they say. I factored 7.5% each for the small and large cap expenses, 8% for vacancy and 10% for property manager when doing calculations.

Hello BP network,

I recently purchased my first single family, out of state property in OH with the intent of renting it out long-term but have come across some major road blocks. I overlooked a lot of details during the home inspection and assumed all of the point of sale violations on the home (~ 30 in total) at the height of the market 4-5 months back. I did most of the repairs myself but kept finding problems that didn’t come up on the inspection (water leak before the main line, gas leak). I’m about to finish all the repairs to get it rented and grand total in repair costs will be $7500. With a renter I will be breaking even after accounting for all expenses (prop mgr, small and large cap, vacant tenant, taxes etc.). This home is old (100yrs), old furnace and water heater on last leg and I’m worried anything the renter touches will break. With the current market being so unfavorable for sellers I’m at a standstill whether I should just cut my losses or whether I should buckle up, hold and ideally refinance in 2-3 years where then it may cashflow a little more or I can leverage the equity. Selling won’t financially break me by any means but it sure would burn.

Numbers

- Purchase price: $130,000

- Downpayment: $20,000

- Mortgage left: $108,000 7-1 variable ARM @ 7.5%

- Projectes monthly rent: $1300-1400

- Projected monthly profit: $0-100

- Assuming 7.5% small/large monthly cap, 10% property manager, 1 month vacancy, taxes, mortgage insurance

Any words of wisdom/guidance would be greatly appreciated 🙏🏻