All Forum Posts by: Mohamed Gharib

@Samuel Diouf
I just sent you a DM.

Thank you for the valuable advice, @Patrick Drury.

Thank you all for offering help.

Thank you, @Remington Lyman, for sharing your valuable insights. Can you provide more details on the specific tasks you wouldn't do? Additionally, in your experience, when is it more suitable to hire a contractor versus a handyman?

Hi BiggerPockets community,


I'm in the process of evaluating a condo in Columbus, OH and have attached a screenshot of the inspection report summary, which highlights several areas that need attention.

I'm seeking:

1. Estimates: Any rough estimates from experienced investors or contractors familiar with the Columbus market would be immensely helpful. Even ballpark figures can guide me in the right direction.
2. Referrals: If you've had positive experiences with contractors in Columbus who specialize in any of these areas, I would greatly appreciate your recommendations.
   
   

Your insights and assistance will be invaluable.

Thanks everyone for sharing your thoughts!

Hi Everyone,

I am wondering what would be a realistic cash-on-cash return for a SFH (Buy & Hold, 3B, $130K, Cosmic Rehab) in Columbus If paying all cash and what neighborhood would fit my budget?

Thanks in advance.

Quote from @Don Petrasek:

Quote from @Mohamed Gharib:

Quote from @Don Petrasek:

Mohamed, the answer depends on a number of factors including your definition of B-class, location, condition of the property.  In general you are probably going to be looking at around a 5%-6% return at best on a single family in a good area.  The challenge is that you'll be competing against owner occupant buyers who are still willing to bid up a house if its in good shape. You may want to consider C grade houses with government subsidized tenants - there's a huge demand here, 10% returns are realistic and you could buy 2 houses rather than just one A/B class house with the same amount of cash. 

Don, I appreciate you taking the time to share your thoughts. As a first-time renter who doesn't reside in Cleveland (although I plan to hire a property manager), I am hoping to find a hassle-free rental experience. Consequently, I am searching for safe and attractive neighborhoods with good schools such as Shaker Heights, University Heights, some areas of Cleveland Heights, and South Euclid. My budget is $130,000, and I'm looking for a property in good condition or one that requires minor renovations. Considering my preferences, do you think a 5-6% return on investment is still feasible? Additionally, since I intend to pay in cash, do you anticipate any significant competition for the properties?

 $130,000 unfortunately is going to put you on the low end in those cities and may include having to do more repairs than you may want to.  PM me if you want to talk more about other opportunities in the Cleveland market.  

 Thanks, Don, will do!

Quote from @Vadim F.:

Quote from @Mohamed Gharib:

Hi Everyone,

I am wondering what would be a realistic cash-on-cash return for a SFH in a B-class and above area in Cleveland If paying all cash.

Thanks in advance.

Personally, I would not focus on the CoC return if you are paying all cash. I would focus strictly on the cash flow. Also, instead of focusing on B-class areas, I would focus more on the C-class areas and perhaps get 1-2 duplex's in those areas for the price of 1 SFH in a B-Class area. Do the research on the areas that are getting tons of cash pumped into them right now.

Thank you, Vadim, for your input. Just to confirm my understanding, since I am making a cash payment, the cash-on-cash return is essentially an indication of the cash flow. For instance, if the $130k house generates a monthly cash flow of $800, then the cash-on-cash return would be 7.4%. Therefore, I believe that there is no discrepancy between the two measures. If the cash flow is positive, the cash-on-cash return will be favorable, and vice versa. right?

Quote from @Vicki X.:

I've been following several local markets in TX, FL etc. in the past two years and the 1% rule seemed to be too good to be true, even for houses that are 10-20 years old. The gap is even bigger for single family homes assigned to good schools. Curious to hear other investors' opinions and find out what I've missed!

 Thanks for your input, Vicki!