All Forum Posts by: Nicholas Misch

@Amir Navabpour You're definitely right, there is "risk" with investing, and no different for "long term plays" like appreciation and rent growth.  At the same time however, cash flow markets are not "risk free".  

What if your property in Cleveland never gets a tenant? Suddenly the property is stagnantly sitting, not making you any cash, and doesn't appreciate quickly to make it worth while. At least in a market such as Austin (just where I'm most familiar), even without a tenant, that property can increase in value by 74k in a year (median sales price increase of Austin SFH from Feb 2021 to Feb 2022 according to Austin Board of Realtors). Areas like Round Rock saw even more aggressive growth (median increase of 104k, same source).

Like @Nicholas Misch mentioned, for some people however, there is no option, possibly for their current financial situation.  In their calculations, the "risk" of not getting a tenant does not outweigh the potential cash flow they can achieve from the property, and those quick turnaround paychecks are necessary.  

Hi fellow BPers,

Need your help for a friend of mine.

He was denied a mortgage loan by Citi Bank because he is self employed. He has 3 weeks left to find another mortgage since he’s in contract.

Used to be an investment banker. He is not a W2 employee and doesn’t have much credit history because he doesn’t use a credit card very often. Not does he have a car or other assets with ongoing payments. He has an excellent debt to Income ratio and was very diligent in providing 2 years of solid income and payment history.

I know his lack of credit history is a tough one here. Can someone advise here?

@Nicholas Misch I see that, but goodness how long? When I look at what rents to costs to own are you’d be waiting decades to cash flow. In the Bay Area for example you’d be lucky to get a .25 rent to price ratio. Even when I buy 1 percent deals often times I’m breaking even cause things inevitably go wrong

Hi everyone, 

We are considering converting our current residence - 3 BR 3.5 BA 2300 sqft 2013 built Townhome in Cleveland - to a long term rental when we move out of Cleveland. There are about 70 townhomes in our community and the HOA takes care of snow removal/deck/exterior maintenance(~250$/mo). What would be the fees usually charged by property managers for such a unit?

Thank you all for your input.

Recently on the podcast I’ve noticed David advocating pretty strongly for growing markets: Austin, California, Denver etc and being more bearish on cash flowing markets: Cleveland, Detroit. Most recently he spoke of how these cash flowing markets have high turnover of investors who end up exiting the game, in favor of the growing markets. I’m curious if anyone has gone through that process? Personally I can’t imagine it, as it’s hard enough finding good cash flow in the 2nd/3rd tier markets. To me any growing market is almost certain to be negative in cash flow and it feels more like you’d be speculating and hoping for appreciation and rent growth. Curious for any who have exited a cash flow market to go to a growing market, what am I missing?

Hello all - I am new to flipping properties in Cleveland and I need some advice, here is the situation: 

Situation

1. Purchased a 3 Bed, 2 Bath in Parma, OH for $83K

2. The tenant is not paying rent and we are in the processing of evicting

3. Property needs new roof, new siding, rewiring of electrical and cosmetic interior rehab

Questions

1. If the tenant is removed, do you think we can sell the property for $100K given its condition?

2. If not, what repairs above would you do to maximize the profit of this flip (roof, siding, rewiring of electrical or cosmetic interior rehab)? 

Good morning Bigger Pockets community,

I am brand new to BP and I am looking to start investing in real estate in the Cleveland, OH area. I'm excited to be a part of this group, and if anyone has recommendations on local clubs or associations in Ohio that I can join I would greatly appreciate it!

Thank you,

Micah

Looking to invest in low involvement real estate passive income strategies in Texas.

Hi All! My name is Shannon and I live in San Francisco, CA. Currently 28 yo and have around 100k ready to invest. I am very new to real estate and currently do not own any properties. I and am looking for a market that will possible provide me some cash flow + appreciation. I am honestly very overwhelmed with which state I should be looking in. I hear mixed reviews about investing in Texas because of the high property tax. But I know a good deal works well in any market. Texas, Indiana, Kentucky, Wisconsin, Tennessee, Florida? How do I narrow down my search ?