All Forum Posts by: Michael Kiley

I've owned many homes in the Kamms neighborhood. You will get the same quality tenant in the Kamms neighborhood as you would in Lakewood but you will pay much less and less in taxes there as well. Lakewood has a bigger inventory of MF houses if that is what you are looking for. Both are good areas to invest. Best of luck

Pay off the bad debt. House hack a MF with a low down payment. Save enough money for a down payment on another house and rent the first.

My son wants to buy his first SFH or multi in 2019. Can anyone recommend a good down payment assistance program / first time home buyer program to look into?

Originally posted by @Tim G.:

I'm really bored and I don't feel challenged professionally. Not sure if this means I need to move into another asset class or do something different. Money isn't a motivator like it used to be. I need a creative outlet and way to give more purpose to my work. 

I've been fortunate to spend the majority of my time doing meaningful work with quality people. Every day I get to use my hands and create something beautiful that's tangible and purposeful rehabbing houses. I've rehabbed homes all over Cleveland almost exclusively by myself and someone I enjoy company with. It's a good life, a rewarding one...but here's my "problem" I listen to what other successful investors have to say about creating a passive income by developing systems and hiring teams to do all their work (deal finders, contractors, brokers, property managers...) I know this makes financial sense and it's smart...but at the end of the day, I don't find it satisfying. My problem is that as much as I would like to enjoy the fruits of a scalable business, creating one is as exciting as filing my tax return. So in conclusion, I think that happiness must lie in the balance. I feel that we all need an outlet for our creativity and if we don't allow it, life gets boring and we lack purpose. 

@Shanti Jimenez "I realize good Contractors are hard to come by and when you get them, you hold them tight"

Very true!  I have a difficult time keeping up with the demand because good help is so hard to find. New projects are booked thru June 2019 so I can understand why folks here might not want to share their contractor lol. I can hook you up with an excellent small property management company in Cleveland that returns calls and is crushing it so private message me if you still need a referral.

@Mitchell Litam, any area can be advantageous to BRRRR. It just comes down to buying at the right price. The Biggerpockets BRRRR calculator can help with that. With that said, I BRRRR in C or B neighborhoods because I rent single family homes and get good tenants that never want to leave. There are many good zip codes to choose from, but I like 44111, 44135, 44109.

@Joseph M. I see a ton of bank owned on the MLS. They also list on sites like hubzu and auction.com

@Courtney M. I have a friend who I started buying houses with 25 years ago. He had money and I had time. We put the house in his name but the success or failure of the project was all on me. I'd find the house that he would then purchase and fund all the improvements. 3 months later when "his" house sold, I would invoice him for the work I did. The invoice amount would equal the total profit minus the cost of his money. Pros: He had security. I secured a "line of credit" that was relatively cheap (7% no fees). I didn't need any money to get started. Cons: The house was in his name so if something happened to him (law suit, death) I could be on the hook. We had a construction agreement drawn up by my attorney but obviously, trust was still the main ingredient. This process could work for a BRRRR as well if you didn't plan to flip.

@Courtney M. Closing with a bank can be as quick as the title company can work...from a few days to a month. It's whatever you both agree to

@Courtney M. Dealing with a bank is just like dealing with any other seller except they are professional sellers and offers will be submitted with their purchase agreements and addendum- very one sided agreement nonetheless. You need to accept all their terms or they move on to the next offer. If you get a great deal, who cares. Bank owned is a great source for distressed property. I find many times they are priced to move so you need to act quickly...which is why cash works well in this circumstance and many of these homes are uninsurable so you couldn't get financed anyway. Hope that makes sense. Best of luck!