All Forum Posts by: Nicholas Misch

Message sent to you. 

 Hey David, I can forsee a correction or dip in prices, but with the extreme shortage of both homes for sale and rent, and many buyers flush with cash and decent credit, I do not see how a "crash" in prices is possible. 

It appears as if no one has asked / mentioned the possible tax implications. Have you lived in it for 2 out of the last 5 years? If so no taxes due so no worry. If not you will owe short term capital gains tax. This is a very big consideration as we sold a property last year and were in hurry to cash out so we could use it on the next deal, but that decision came with a very heavy tax consequence and we are not sure we would make that decision that way again. If this is a consideration for you I highly recommend you consult your CPA before moving forward. 

 Hey Ivan,

Your question honestly leaves some crucial info out regarding what is the "best parts". This really depends on if you are looking for primarily cash flow, appreciation? Easy to manage but less profit, harder to manage and more profit? You definitely need to get your core 4 together so you can get direct and pertinent advice to your desires and needs. 

Message sent. 

Both markets have many opportunities. Akron area also has many great opportunities. My biggest advice is make sure you thoroughly vet anyone you partner with or work with, especially when you have to have complete trust investing at a distance. Always check out and investigate multiple options. 

I HATE to sell anything as I believe in and love long term appreciation, however how many A/C's or other items will need to be stolen for a good deal to be bad. If there is any profit at all, I would sell and use those funds (and my time) elsewhere. In the end it completely depends on your goals and desire for more work or less. Best wishes on your decision. 

Hey Hina, while I am not in Texas a few things come to mind to consider. For me anything with an HOA, I generally stay away from because of all the rules, and generally the HOA board can make changed and increase dues, as well as charge special assessments anytime they want (based on a vote by the members). As far as the numbers I generally do a quick 1% rule (which just to mention is not a tell all rule, but a good quick rule of thumb), which would say that for every $100k in property value you should be able to get $1k in rents. On your deal above if you pay cash, your estimated rent minus your monthly HOA and insurance of roughly $350, you'd be left with cash flow (without other possible costs included) of $2,850. This is only 0.5% of the 1% rule, and in that situation your money isn't working very well for you. Obviously if you didn't pay cash, but had a loan to pay instead this would greatly reduce your cash flow or even make it negative. I understand that the 1% rule won't work in every market, but based on the numbers and my general knowledge, this would not be anywhere near a good deal to me.

This is an ongoing struggle for agents and investors alike. Cleveland and surrounding market is still very tight. People are paying $30-40K+ above asking with AGC (appraisal gap coverage) and no inspections (not recommended). Inventory is growing some but still extremely scarce. As far as the adapting part, I am just doing whatever I can to keep building my portfolio and net worth. Working with buyers when we can actually get an offer accepted on a property. Listing properties for sale when I can grab the few available, and using whatever investing strategy I can where I can buy right. Currently wrapping up a BRRRR that will be our first Airbnb. Cleveland is a great market for finding a value add deal and then adding the value :)

 Hey Joe, I wish I had your problem LOL! Seriously though you have to take breaks and have systems so you can. I don't know your whole situation but If you posted it here, then you must be feeling it enough to need it. I have had moments of RE burn out (sometimes weekly), but I always work to make sure I still love it as I never want it to be something that overall feels like work. I know what I have said is often easier said that done. I wish you the best success and rest.