All Forum Posts by: Michael D. Shrout

Hello BP Family,

This is my first post.

I just made my first deal and it's a long distance one that came to me through a relationship I built using the tips and techniques I learned here at Bigger Pockets.

I paid $1000. under asking which to me didn't feel like a good deal at the time, but I ran my numbers in multiple different scenarios and I just knew I had to pull the trigger. It is a cash deal and I am presently waiting on my inspection report to confirm my situation.

I am a new investor living in Long Beach, CA. I have been searching the MLS for months in the Cleveland area and have actually had one offer accepted but it fell out of contract after I discovered the property needed a complete rewire and a new roof. Thank you Mr Inspector. The sellers were not willing to negotiate any further so I backed out of the deal and moved on.

I've been extremely cautious due to the fact I'm new at this, but this deal's numbers work for me any which way you slice it up so I jumped in with both feet. I expect to close the deal in mid November and look forward to pulling off a killer BRRRR. This place is a four unit building with three tenants who want to stay. Even if I don't rent out the fourth unit AND I don't change the current rents, I am still looking at an ROI of more than 15%. My plan is to make some upgrades to the interior (outside seems solid) and bump the rents up to market level. I'm setting aside about $20,000 for improvements if needed so if the current tenants don't want to stay and enjoy the improvements but pay a little more rent, they don't have to, but I still have the option of just keeping it "Status Quo".

Any advice you can offer will be welcomed.  But if any of you do business in Lorain, OH, or the surrounding areas, I am looking to put together a team so I can repeat my efforts over and over.  I'm looking for contractors and tradesmen of all sorts, property managers and as much local knowledge as I can get.  

I'm planning on coming to town for a visit Nov 12-14 so perhaps a meet up will be going on that I can attend.

Thanks to all.

Mike

Hello Kristopher and "Sister",

I am a newer member to Bigger Pockets as well.  In fact this is my first post.  

I live in Long Beach, CA, and I made the decision almost immediately after learning about "Bigger Pockets" to start looking around to invest in out of state deals because of the prohibitive costs hear in CA.  I read David Green's book about "Long Distance Real Estate Investing" and got to work searching.

I have been researching where to start and was drawn to Cleveland for a couple of reasons.  I know people in Ohio (Fremont), the landlord friendly state it is, the low vacancy rates and the employment opportunities near Cleveland drew me in.  I have been scouring the internet, evaluating properties, and giving the "Rental Property" evaluation tool on this website a workout.  I have personally looked at over 150 properties on the internet.   I feel like I am on the right path because the three properties I wanted to make an offer on were quickly sold before I pulled the trigger.

One of the most difficult things for me to find is a property which still needs improvements so I can increase the value to justify raising rents and accomplishing a proper BRRRR, but one that does not need a complete tear out and remodel.  The three things I am keeping a priority in my search are Location, Location, Location!!

If you or anyone else reading has input or any access to deals like this, I would be very interested in hearing from you.  

So you know, I haven't purchased any property yet but I am in the process of getting prequalified for a loan to see what my purchase limits are.  I have completed a HELOC so I will have some cash in hand for construction costs or a quick cash purchase of a property.  

I look forward to hearing from you.

Mike