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All Forum Posts by: Michelle Cohen

Michelle Cohen has started 3 posts and replied 24 times.

I thought there used to be a tax professional category under "build your team," but now it's not there. Darn it! I live in Florida and have my own business (in the marketing industry) and in 2023, we bought our first investment property in Ohio. Can anyone recommend someone to do our taxes for us? Thanks!

Quote from @Ibraheem Ejalonibu:
Quote from @Michelle Cohen:
Quote from @Ibraheem Ejalonibu:
Quote from @Michelle Cohen:

I bought my first investment property in Cleveland just about a year ago... more specifically, in Clark-Fulton, which recently had and is still having money pouring in. It's currently a C- area but it's projected to improve in the coming years. In the meantime, the cashflow is good.


 Hi! I'd say the first thing to get started is to make sure you have a good agent. Look for one who is an investor and who has experience working with out-of-state buyers. 


 Thanks for your feedback, Michelle! Do you perhaps have some contacts you could share?


 I sent you a PM!

Quote from @Ibraheem Ejalonibu:
Quote from @Michelle Cohen:

I bought my first investment property in Cleveland just about a year ago... more specifically, in Clark-Fulton, which recently had and is still having money pouring in. It's currently a C- area but it's projected to improve in the coming years. In the meantime, the cashflow is good.


 Hi! I'd say the first thing to get started is to make sure you have a good agent. Look for one who is an investor and who has experience working with out-of-state buyers. 

I bought my first investment property in Cleveland just about a year ago... more specifically, in Clark-Fulton, which recently had and is still having money pouring in. It's currently a C- area but it's projected to improve in the coming years. In the meantime, the cashflow is good.

Quote from @Sahil Jain:

I can tell you which ones to stay away from!


 I'd love to have your list. And I can add a couple of my own to it....

Post: Switching to Self-Management

Michelle CohenPosted
  • Posts 24
  • Votes 15

Hello! We are first-time investors with a triplex we bought in January. We live in Florida and the house is in Cleveland. We are on our second property management company and have gone from terrible to even worse, so now we're thinking about whether we can manage it ourselves. We're already spending hours each week trying to get hold of people, so while we know we'll have headaches managing on our own, we already have headaches, and at least then we won't be paying for the privilege.

A few questions for those who know about managing a property from 1,000 miles away:


1. How do you manage repairs when the tenant isn't home to let in the contractors? We aren't going to be able to fly up on a moment's notice to let in a furnace repairman while the tenant is at work, for example, so how is something like that handled?

2. How do you fill a vacant apartment? Our issue is mainly showings. I know we can set up an account on apartments.com or zillow and manage the listing, but again, we can't physically be there to show the apartment.

3. How do you handle things like lease violations, evictions, etc? Can you hire someone to post a 3-day notice, for instance?

4. How often, if ever, do you go to the property to take a look at it in person? Only at turnover? Never? Can you hire someone to be the eyes and ears and drive by occasionally to make sure nothing untoward seems to be going on, that the lawn company is actually doing the mowing, that there isn't trash piled up in the yard, etc? 

5. Is there anything else you might advise on? What didn't you think of when you first started managing your own property that you wish you knew?

Thanks so much for any advice!

Michelle

Quote from @Matthew Masoud:
Quote from @Michelle Cohen:
Quote from @Matthew Masoud:

So back in 2018, I decided to purchase property out of state since I couldn't afford the property in SoCal. I chose Ohio as a market and started looking for property.

The first deal I found was a 3-unit for $100k. Market Rents were $600-$800/month/unit. Monthly expenses were around $1,000 with everything.

I thought I was purchasing a cash-flowing machine. 

Turns out, the property was in a D-class area. Break-ins, loitering drug addicts, and inherited awful tenants were my everyday headache.

Before I knew it, I had to fire my property manager and move from Los Angeles to Ohio to figure out what to do with this property. I started doing repairs myself to save costs and slowly over 6 months got all the bad tenants out and got 3 solid tenants in all at $800/month.

In exactly 12 months I sold the property for $190k. Even though I lost my hairline, I gained so much knowledge. 

That knowledge took me from 3 units to 51 in less than 2 years.

We are all so worried about making mistakes but the mistakes I made with that 3-unit is what got me to where I am now. A lack of action is WAY worse for your success than mistakes.


I'm glad I read this today! We are dealing with what are most likely just rookie mistakes. We are getting frustrated and tempted to throw in the towel, but I think if we're making mistakes now, they're basically training for how do NOT do things, which will lead to us learning firsthand how to do things correctly. 

Were you in Cleveland? We have a property in the Clark-Fulton area right near the hospital. My realtor says it's a C-class area. We were there in person, but we aren't super familiar with the neighborhoods in the sense of living there or spending more than a long weekend.


I always make a joke that take whatever the realtor says and subtract a letter grade. 

Definitely spend some time in the area. You can make a lot of money in C class but it's quite a bit of work.


Yeah, maybe! It's Clark-Fulton, close to the new hospital. When we were there, we saw several new houses being built in between the old ones, so there is some movement in the area. We haven't dealt with any crime/nonpayment/etc, mostly just a bad PM company and for some reason they/we can't get the third unit rented. It's nicely updated and priced competitively so IDK. Maybe it's the street.

Post: Property Management Woes

Michelle CohenPosted
  • Posts 24
  • Votes 15
Quote from @Michael Smythe:

@Michelle Cohen Suggest you try to have a VERY open conversation with Mary about their overall business systems and procedures. 

Guessing it won't go well because they bought another company and were ill-prepared to take on all the new units and provide acceptable service.

So, while you're waiting for that chat with Mary, which she will most likely avoid, you should start interviewing other PMCs.

Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.

We also can’t believe how many owners hire the first PMC they speak with!

Then they complain their expectations aren’t being met!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Thank you! Yes, it's basically impossible to reach Mary. I've emailed and called several times, and my husband called twice and we've gotten absolutely zero response. I agree with your hunch that they took on a company's clients and just don't have the bandwidth.

We hired the second PM we talked to, who came with the referral from our awesome realtor. I did call the realtor and told him what was happening and he was mortified. I was optimistic when they were absorbed by the other company, but apparently that optimism was misplaced. 

The main issue I'm having is that I specifically asked about contact methods, frequency, how long it takes to get in touch with someone, how estimates are handled... and Kate had all of the right answers. She just has no way/inclination/desire/ability to actually follow through on her promises. I'm guessing she had good intentions. I just don't know how to discern whether someone else is also telling me their "best case scenario" rather than the reality. 

But you're right, live and learn. 

Quote from @Matthew Masoud:

So back in 2018, I decided to purchase property out of state since I couldn't afford the property in SoCal. I chose Ohio as a market and started looking for property.

The first deal I found was a 3-unit for $100k. Market Rents were $600-$800/month/unit. Monthly expenses were around $1,000 with everything.

I thought I was purchasing a cash-flowing machine. 

Turns out, the property was in a D-class area. Break-ins, loitering drug addicts, and inherited awful tenants were my everyday headache.

Before I knew it, I had to fire my property manager and move from Los Angeles to Ohio to figure out what to do with this property. I started doing repairs myself to save costs and slowly over 6 months got all the bad tenants out and got 3 solid tenants in all at $800/month.

In exactly 12 months I sold the property for $190k. Even though I lost my hairline, I gained so much knowledge. 

That knowledge took me from 3 units to 51 in less than 2 years.

We are all so worried about making mistakes but the mistakes I made with that 3-unit is what got me to where I am now. A lack of action is WAY worse for your success than mistakes.


I'm glad I read this today! We are dealing with what are most likely just rookie mistakes. We are getting frustrated and tempted to throw in the towel, but I think if we're making mistakes now, they're basically training for how do NOT do things, which will lead to us learning firsthand how to do things correctly. 

Were you in Cleveland? We have a property in the Clark-Fulton area right near the hospital. My realtor says it's a C-class area. We were there in person, but we aren't super familiar with the neighborhoods in the sense of living there or spending more than a long weekend.

Post: Property Management Woes

Michelle CohenPosted
  • Posts 24
  • Votes 15
Quote from @Nathan Gesner:

The fact that they haven't even signed the PM Agreement is a HUGE red flag. Without a contract, they have zero obligation to you and it opens them to liability because they are acting on your behalf without authority. Serious rookie mistake. If they allowed such a major document to fall through the cracks, what else will they fail to do?

The other thought: maybe they left the ball in your court and you never signed the PMA. Because you haven't signed it, they don't feel any obligation to act on your behalf and are slow to respond. Is that a possibility?


I suppose it's possible. I would have thought they'd say, "we can't do this because we don't have a signed PMA." But I guess anything is a possibility at this point!