All Forum Posts by: Mitchell Litam

Hey guys. Trying to secure on Heloc on my home to help secure funding for a BRRRR.

I recently did a cash out refinance to buy my business partner out a year ago.

How do banks typically do appraisals.

I own a duplex (Does this get valued differently by banks as opposed to single family homes?) and owe about $140k on it.

The city just raised my property value to about $126 and I tried to dispute it to keep property tax lower.

Zillow says my zestimate is about $269k with single family homes within two houses selling for $250k and 300k in the last 6 months. Again not sure how much it affects that those were single family homes and mine is a duplex.

Can anyone help me understand the appraisal values and how they may run the numbers on them? I am trying to work with Third Federal Bank if that helps.

@Austin Davis Sounds like you have a very skilled job with the amount of student loans you have so good for you.

Hard money lending is a great option for you as many people have said. It allows you to get amazing returns on your money with minimal work. I am working on building my portfolio but am on my second lend while looking for my next property. I am currently getting 15% on a 6 month loan.

Make sure you vet the person you loan to so you dont get burned.

Thanks everyone for the comments!

I was going to order @J Scott s book but saw there was a new version coming out and I was very excited. I already pre-ordered it. I love when new editions come out because I love the most updated information.

@Kenneth Garrett Thank you for that. It was exactly what I was looking for. I was hoping to do most the work myself but again I am not very handy. Ill contract any plumbing stuff there is for sure.

@Ken Barnett very detailed description of what I need. Ill have to watch some youtube videos to see how to do all that. I have heard to never pay contractors up front so thanks again for reinforcing that!

@Amir B.

I am sure you have ran your numbers correctly. With those numbers I would think that the quad would be in birdtown part of Lakewood correct? That area is a little rougher than most other desirable areas of Lakewood and offer a lot of section 8 around that area.

@Sebastian Reymers Nursing home into a multifamily. That sounds amazing. Sounds like a lot of moving parts. The good part is your mind goes straight to building and creating value. Make sure you do a lot of research and reach out to people that have done similar projects before.

Im currently driving for dollars around Lakewood, Old Brooklyn. I would prefer Kamms corner. Looking to BRRRR a house with the ARV fo $120k since I am just starting to get ready. I havent had much luck on the MLS.

@Sebastian Reymers Congrats Sebastian. Also welcome back to America. What part of Old Brooklyn did you buy in? I was interested in that area but calculated as more of a C neighborhood. 

SInce it was a FSBO did you find it on the MLS?

yup James nailed it basically on the head with all the areas.

I was looking at Cudell but as James said only near west Blvd and these are street by street scenerios. 

Lakewood will always be a hit and will have the best appreciation. Every recent college grad moves to Lakewood to live cause all the non downtown great bars. I am currently house hacking in it and the values have skyrocketed from when I bought it 4 years ago. 

Birdtown is a part of Lakewood but a lot of section 8 tenants there. I dropped off my sisters dog to her friend that lives there and it seemed like a lot of hoodlums living and walking the streets at night. Lakewood itself is a pretty wacky city in itself which is why I love it.

Most likely I will try and find my next house either in West Blvd or Old Brooklyn cause as said before Lakewood is on fire and very hard to find a deal. However you should keep lookig @James Seed I believe in you haha. I still try and look myself.

Tremont is an interesting area. There are brand new very modern chic builds next to condemed houses. Nice resturants yet people getting robbed at gun point. 

Good luck

@Andy Scott I lived at my parents house in Cleveland after gradating from Xavier. I lived there for two years stacking up cash until I started messing around with a recptionist at work and wanted more private space. I started renting which was super dumb. Eventually I met a partner to go into house hacking with me. We got a duplex in Lakewood. Found a roommate to live with us and rented the second part. Living for free in a great part of Lakewood and dont pay any rent of any sort with all the advantages of loan paydown, appreciation, and cash flow.

Its a win/win situation. House hack all day. As long as you find a great deal it could possibly help you pay down your loans faster as well. 

@Andrew Ziebro Very Curious what part of Cleveland is this in? I thought about converting my third floor to something similar to that. Do you have a kitchen in that basement suite?

@Michael Kiley What areas of Cleveland have you found to be most advantageous to BRRRR? You said you use listsource.com?