All Forum Posts by: Michael Orlando

Hello friends!

So I am considering putting an offer in on my first property (a duplex in the Cleveland, OH area) and have a little issue..

The area has very high taxes which tend to be over 6K a year. When I ran the numbers, it was hard to get this deal to make a lot of sense from a cashflow standpoint. However, if I can get it for a solid price and raise rents a bit, it would make sense. It's close to a couple of colleges, in great shape, super clean, just slightly dated. 

One unit is currently rented for 825 but I think the tenant is actually paying slightly under market rent for the area as she knew the owner who lived in the downstairs unit, but passed away. Market rent for this area and unit type seems to be around 875. I'd like to get 950 or 1000 per unit if possible. These are 2 bed, 1 bath units. 

There is older carpet through out, a pretty dated kitchen (but very clean), and dated, but clean bathrooms. I'm leaning towards doing some vinyl plank flooring through the units, kitchen cabinets and new tub and toilet. I guess I'm looking for advice and what tends to add the most value in tenants eyes and if I'm on the right track. If so, does anyone have recommended materials/brands for the renovations that they tend to use over and over for certain reasons?

Thanks!!

Would love to hear from anyone who’s sold properties using lease options! I feel like when I bring up lease options or do some reasearch, people either love them or hate them. A lot of people say it’s borderline illegal and sketchy, but many say it’s a great way to get started and a useful strategy. 

Wondering if anyone had some real life experience they’d be willing to share as to why or why not they utilize this strategy :)

Hey Dan! I'n a born and raised Clevelander and looking to get my start in REI as well. Working on establishing a network myself at the moment. Would love to connect sometime!

Awesome. Definitely appreciate the input. I guess not really being aware of what comes with being a landlord was a hesitation I had. I'm sure it can be all over the board in terms of how much time it consumes on a weekly basis, but was just feeling in the dark about it. I feel like I definitely gravitate toward multi-family investments so maybe I'll "house hack" and start there. I have no issues whatsoever working extra to achieve the goals I have and it's something I've always done. 

That being said, any opinions on lease options would be great too lol

Hello everyone!

My name is Michael and I'm a 24 year old graduate from The Ohio State University with a passion for entrepreneurship. I currently work as a project lead for a quickly growing startup in the Cleveland, Ohio area and recently became obsessed with REI. Working for a startup, I don't make a ton of money.. obviously.. Both my family and I have never had a lot of money, but I've always been motivated and a self-starter. I see real estate not only as an entrepreneurial challenge, but a key to financial freedom and being able to support my family. I was never someone interested in working in the corporate environment..

So, I've been saving the little money I can for a potential down payment on a house (I'm talking like 3-5%). I became interested in lease options after watching a lot of Kris Krohn's stuff and it seems like a pretty good strategy for a beginner with less capital. I've contemplated buying his course. I guess in his course they actually give you all of the paperwork you need to go out and start doing deals which is what really made me interested. However, I also have a wealthier family member who may be willing to get into some multi-family investing, she just doesn't have the time/will to learn about investing so is leaving that up to me. With my full time job (about 60 hrs a week) I don't have a ton of extra time to be a landlord. But, I also don't know how time consuming it will/can be and if it would be something I could balance with a full time job.

As a new investor which path do you think you'd pursue in terms of having a work/work balance (being able to keep my full time job and invest at the same time)? Why would you choose this route?

Any and all help/advice is appreciated!