All Forum Posts by: Michael Masterson

@Kenny Schumacher welcome Kenny! I mimic a lot of the above with love for Cleveland market. Born and raised here and have just a few rentals on the west side. Also do some flipping.

If you’re willing to go the route of value add here you cannot go wrong. A little more involved but in the immediate suburbs there’s tons of dilapidated duplexes and quads you can really drive up rent on.

Takes some time but there's potential to find $550-$700 a month places and turn into $1100-$1300 units with some love. Additionally money invested in almost always pays you back on a BRRRR.

If you come across any deals and you’re unsure potential I’m glad to give you a quick answer.

Also I recommend dealing with local banks here. With older homes and knowing the market they tend to give

Less hassle on inspections you may encounter otherwise.

@Regina E. Hi Regina-what price point are you looking? There’s good opportunities for value add on some properties in those areas mentioned above and loads of turnkey for “top dollar” here. Problem is you can quickly get into undesirable areas much quicker than you find in larger cities.

If you’re analyzing deals on the west side of Cleveland happy to give input what you can expect!

100%-I started out with my mentor as a laborer at night on their flips. We've grown to partner on deals, and have gotten better in our respective areas because we can focus where we excel. If they see you as a sponge, or willing to learn AND they are a true businessperson they will view it as an opportunity to mold a mini version of themselves. Good luck!  

@Adam CraigI agree with the above. Even the best tenants don't maintain the yard as you expect them too. 

The multifamily properties I do have with a yard I've had tenants plant their own shrubs, and even gone as far to give them a slight rent credit the following month. Then everything was overgrown by the fall, and I just paid a landscaper to pull everything out. 

Stick with professionals on it. You'll be much happier. 

PS - I see you're in Cleveland. I've had really good luck finding really inexpensive landscape design in community NextDoor forums, and even Facebook

Condos in Florida! Good Move @Albano Fatigati ! I think given that market you're not in a bad situation because they are so prevalent. However you do run the risk of HOAs getting into litigation which really reduces the amount of buyers available to you. In the past (when the market was really rough) large institutions wouldn't touch Florida condos with a 10ft pole because everything was a mess. If you want to be MORE liquid with your properties I say get out and focus on multifamily-if you're just looking for cash flow long term and they are treating you well with minimal headaches I'd hold them. Kudos again on the condos I'm sure you're sitting pretty if you've had them for 5 years. 

@Michael Pilolla sounds like you already made the decision but I agree with the above statements here. Its a good property FYI-but probably not if you're trying to rapidly grow via BRRRR.

Is there a way to add another bedroom to this house? Do you think it could be a short term rental to generate a little more monthly cash? If not I think you're making the right choice to move on. 

@Joshua Roberts I agree with @John Underwood. Unless you see a very solid "value add" approach with your quad to increase the rents at least hundred per unit you likely will end up in the same scenario. 

However...if you really feel strongly on a $250k+ appraisal with less than $20k renovation (take into account closing, vacancy while renovating, etc) you should explore it though. Do some solid research on your area, get multiple renovation quotes, and double your vacancy time (personal opinion because timelines are tough) 

If you can increase rent $100 per unit. Increase the value up to $250k you're looking at a max loan value on refi of $187,500 though.  

It's a good position to be in. Let us know how it goes!

@Ashley Gish if you're in a position to qualify for a cash flowing property you should do it 100%. Rates are low, you can offset those student loan payments with the income and come out on top. 6-7% seems high because of where we are seeing interest rates now but in the grand scheme of things its still very low. Use leverage while you have it, and be smart. My only twist would be to entertain a multifamily vs. a SFR just because it spreads out some risk with vacancy. It sounds like you don't NEED this money monthly so you should take any cash flow and bank it or aggressively pay down those loans with every cent. I did the same thing with a duplex...I have the rents go to a separate account, and autopay my mortgage, insurance, taxes AND student loans out of there. Anything remaining at year end I dump right onto the loans so I have the safety net in the event of a major rental expense. It's almost like my student loans don't exist honestly. I forget about them often unless I have my credit pulled.

@Jeremiah Russell hi Jeremiah-I’d suggest finding a local flipper who will let you work hourly and at nights perhaps on construction clean up, having supplies on site for next day, etc. You won’t make a ton but you definitely will learn what handyman skills are important to learn, and what others are worth subbing out.

From there you’ll be able to gain some credibility as well. It sounds like you’re a hard worker so that probably won’t be an issue.

Personally went this route and it has paid me dividends on my own deals knowing what my strengths and weaknesses are in the labor department.

@Brendon Pishny 100% agree on the software. I use RentRedi but it’s the same idea and honestly allowed

Me to take on new properties rather quickly. I typically charge a flat fee and every cent I put into my personal properties so it’s a win/win. Properties are much less of a problem if you have processes in place.