All Forum Posts by: Michael Hayes

Frank, 

Looks like you really did your homework! Great analysis. I have 2 rentals in Parma and it has always been a good rental market. To make the numbers work, you have to buy right!! The property you referenced is the only one on the MLS under $100k, so in the last couple of years, it's been more difficult to find deals like these. What also stands out is the property is 3 bedrooms but only has 750 square feet, but I double checked the auditor's website and it says the same...so I guess they are probably very small bedrooms.

Reach out to me or connect if you have any further questions.  

Good luck.
  

I am just having this issue now as well.  Has one found out how to solve this problem with Zillow Rental Manager?

Great job on the BRRRR!

I read the same book and loved that idea.  I have rentals in the Cleveland area and meeting people out was such a drain on my time, half the time people didn't even show.  So when I came across the lockbox idea, I was sold.  I tried it out immediately and it seemed to work well for me.  I had them text me a picture of their driver's license so they knew I had their information.  I think most people looking to rent a house are not out to destroy property...at least in my experience.  I'm not sure about the liability (not a lawyer) but I did have the rental insured for that reason before I showed it.  

Good Luck!

@Dan Mitchen and @ehsan rishat -  I guess I can only upload one picture at a time.  Here is my dropbox link - I guess I didn't have as many pictures as I thought, but its a start.  

https://www.dropbox.com/sh/wbg...

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $88,000
Cash invested: $111,000

2019 Cleveland BRRRR!!! I just finished the buy, renovate, rent, and refinance on this foreclosure that I purchased. Now for the REPEAT!! I'm very proud of this property. It's a great location in WestPark...a district in Cleveland, OH. It took way too long but worth all the hard work at the end.

What made you interested in investing in this type of deal?

I loved the location of this property. It's very close to another property that I own. When I saw it became available at the county foreclosure auction, I ran the numbers based on what I knew about the property, set my limit I was willing to spend, and went to the auction check in hand.

How did you add value to the deal?

I put about $22,000 into the property to get it rent ready. This included all new doors and carpet in the bedrooms upstairs, completely remodeled full bathroom and updated half bath and kitchen.

What was the outcome?

I was able to put a mortgage on the property and with current rent, I'm making $300.00/month. Appraisal came it at $161,000!!

Lessons learned? Challenges?

The lesson I learned on this one is I can't do everything myself. But I now have a full understanding the amount of work that goes into properties and their costs.

It looks amazing!!  Great job on your first flip.

@Nick Ferguson

What stands out most for me is that you are including all of your utilities.  I pass those costs on to the tenants and that seems to be the norm for this area.  So that will get you some better numbers.  Also, I see you have itemized the following: "lawn and snow", "pest removal", "landscaping / lawn care".  These items seem similar to me - are they all required?  

On another note, I see you have 20% down.  All of the lenders I've spoken to require 25% down for investment properties.  I believe that is a Fannie Mae requirement...if that pertains to you.  

Good Luck, 
Mike

@Christopher - Thank you for your reply and the order of events.

I determined the price of the home based off of comps in the area.  I also own another rental a street over and am familiar with the area.  The property also has new windows, A/C, and furnaces for both units and is all brick...major pluses that I was looking for.  I negotiated $9,000 under asking price.