All Forum Posts by: Michael Kiley

I would never live in a city that doesn't enforce it's laws but I'd imagine a quick google search for builders in the Chicago area should do the trick.

I respond almost daily to my inbox from out of state investors interested in Cleveland. Here is my usual reply...

I self manage and do all my own renovations so I don't have any experience in dealing with outside property mgmt. In fact, I believe my numbers have worked out that well because of those factors. Many of the deals that you hear about that sound like they need their own infomercial are in areas I'd never buy and the rest are from folks like me who have boots on the ground and don't mind hard work. That's just my perspective but I'm sure there are more great deals to be had by out of state investors like yourself, especially when comparing to what you find in your home town. The property I bought for 15k wold have been condemned or torn down by many but it was a small home and didn't take much for me and my son's to make it look like new. I'm familiar with the materials I use in a rental or house flip so I don't have to rethink it every time. I keep my costs low and know how to appeal to the majority of home buyers. If I were you, I wouldn't give up on Cleveland just make sure of the neighborhood you're buying in. (44135, 44111 and 44109 are a few I like) I think it should be C class or better. Lower class properties would be a nightmare dealing with from afar. Lastly, my own personal niche is buying smaller homes built in the 40's and 50's. Houses built around here in those decades were built the best by real craftsmen and typically have hardwood floors. Anything older is gonna have maintenance issues with lath and plaster, tampered-with knob and tube wiring, galvanized plumbing and drafty windows. I look for houses that need everything because after a house is rehabbed fully, I know everything about it and all of the major systems have been replaced. Best of luck to you.

(I posted this to help guide would-be investors in the right direction. I don't do property management for others and only use my license for personal use)

I use my HELOC like a savings account and don't keep much in the way of cash reserves. By feeding the HELOC with all my rents and other income sources, the average daily balance stays much lower and the result is a mortgage that gets paid off way sooner.

Have you heard of a HELOC credit line being shut down prematurely? In other words, the bank just decides on a whim not to lend any more.

Huntington does no cost HELOC's for rental properties. I was quoted 5.5%, 75% LTV. $60 annual fee. I don't plan to use it, but in times like these, it's nice to have access to relatively cheap money

 Excellent idea! This sounds like a better alternative than no rent. Has anyone else tried this? 

Linda, Did your tenant get caught up on the security deposit?

@Erik Pierson

I've been part-time in real estate sales for 23 years since my main gig is flipping and accumulating SFH rentals. That being said, getting my license has been very helpful and profitable in running my other businesses and gives me access to great deals on the MLS. I sell a few homes each year and buy a few more so I always make a profit. If your goal is to someday transition into a full-time career, I believe this could be a good way to do it. Best regards!

@Jeff C. 

Hi Jeff, just to be sure, are you saying you would calculate the new taxes from the sale price and disregard what the current tax bill is? Thanks

Some of the best deals I've found have had foundation issues. I made 100k on a 3 month flip that had a block wall that was pushed in. I repaired it with a pilaster and waterproofed all the way around. I keep in touch with the guy I sold it to (10 years ago) and he has had no issues with it ever since.

If you are unsure, you could always get an inspection by a foundation specialist BEFORE purchasing. Don't lose out on a good deal because of this.

That's quite impressive to graduate from high school with an associate degree AND your real estate classes completed! It will be hard work to make it as a new agent so I'd recommend riding on the coattails of a large brokerage like Keller Williams.

$17,500 (1950's 3 bedroom bungalow in Cleveland)

$2,500 renovations (new roof and paint)

Rented for $800

*I recently spent $18,000 on interior renovations. It now rents for $975