All Forum Posts by: Nick Ferguson

@Brian Legg, I have to agree with @Matt Motil and @Federico Gutierrez about just taking action.  While I am not as experienced as many on here, I can tell you that my "plan" has changed probably more times than I can count.  You definitely shouldn't rush into something until you are knowledgeable but by no means do you need to do all of the stuff on your list before you purchase something.  You will definitely learn by experience when it comes to the actual management side of things.  

I would also agree about aiming for more than $100 per door and make sure you account for capital expenditures.  I purchased a duplex last year with an original furnace from 1924.  On the one hand, it was 80 years old but on the other had been there for 80 years and was still kicking. What were the odds it would fail in the next year or two?  Well, it failed 6 months into my owning the property.  It cost about $2,500 to replace and ate about 6 months of cash flow.  Luckily though, I planned for those kind of surprises so no big deal.  Also, at $100 per month per door, with a duplex, a $2,500 expense is over a year of profit if nothing else breaks. 

Overall, I think you've got a great plan and great motivation.  Just be sure not to get bogged down in "the plan" and not take any action.  I'm in Parma and on a similar path to what you are going for, feel free to connect if you want to chat. 

@Nicole S. Welcome to the site. 

I don't think I can answer things any better than what has already been said but I'll echo a few sentiments. If you plan to be active and not just a partner in a larger multi-family deal, a SFR is a great place to start. I started with a single and they are definitely easier to manage than even a duplex.

As far as some of the areas already mentioned, I live in Parma and have an investment in Old Brooklyn.  As said, Old Brooklyn is a great area for buy and hold.  There are tons of available single and double units available for low/moderate prices and rents are solid with a good working-class tenant base.  The Parma area is more expensive than Old Brooklyn but also has higher rents and stable tenants without the overhead you can get in some of the more "glamorous" suburbs.

I'm not nearly as experienced as some of the people on here but feel free to connect with me on here or when you come through. I'm always open to any kind of partnerships or JVs that benefit both parties so feel free to reach out if you ever have an eye on a deal and need help tackling it. 

@Kim Meredith Hampton  

Hey Kim, 

I'm having similar issues tracking down a property owner except the property is still under mortgage.  When I look up the property on the tax assessor's website, it shows the owner's name and the tax mailing info is to their mortgage company.  How do you find the owner's address when the tax info is going to the mortgage company?

@Timothy Murphy III is exactly right.  It doesn't have to be in your (the landlord's name) but you are ultimately responsible for that bill if a tenant leaves you high and dry.  Additionally, in the Cleveland market, it is pretty much expected in 2 units and up that the landlord will pay water/sewer.  If you try to make the tenant pay that, good luck keeping them unless rent is lowered as well. 

On a side note, I do have an SFR NOT in the Cleveland area and I do have the tenants put it in their own name and pay it. But I always know that I am ultimately responsible for that if they leave a balance at the end of their time being there.

I'm starting to poke around with the idea of starting out in the multifamily space with apartment investing. There are a decent amount of apartments in solid neighborhoods near where I live and near where I work. I'm looking for off-market deals as the MLS, loopnet, etc. will likely not fit criteria. So my question is how do I actually find and contact a property owner if I see a property that interests me?

I know how to look up the property info and get the owner's name from the Cuyahoga County property search but once I have the name of the owner, how do I find out where they actually live or some kind of contact information?  The only addresses I've been able to find are with the associated property and nothing about where the tax bills are sent or any other owner info. I'd love to reach out to some local apartment owners, build a relationship, and someday perhaps purchase a property before it hits the market from them or someone they know who is selling? 

@Nicholas Libertin I've been able to find a guy that is doing some work at my house.  He charges $40 an hour (not terrible in my opinion) and does quality work and is reliable.  The caveat is that he has a 4-hour minimum so he isn't who I would call for a leaky faucet or something unless there were several other projects that needed doing.  I'm still looking for that kind of person.

PM me if you want contact details or if you find any good leads on an "emergency" call kind of person. 

Welcome @Greg Parras . 

I started investing right after college and now own some student housing.  I work about 2 blocks from U of A.  I'm no expert but I'd be more than happy to meet for coffee/lunch some day if you wanted to talk real estate. 

- Nick

I'm interested if anyone knows what the associated costs for sub-metering units are in Cleveland and what the restrictions/obstacles for sub-metering electric, gas, and water.  I've got a duplex and I've kind of kicked around the same idea except with water.  Whenever something needs replacing, will it be feasible to drop rent by say $25 per month, sub meter the water, and pass the water/sewer expenses on to the tenants?

@Garett Koehler .  I actually do have an investment in your area in Portsmouth.  I used to work near Otway and bought the house when I worked down there but I'm now in Cleveland managing from afar and I'm trying to build a property up here.  Please reach out to me and I'd be happy to connect, give you any advice I have on the area, and just get to know you.  You're the first person in the area I've seen in my 2 years or so on BP.   Perhaps we could both help each other grow. 

- Nick

@Garrett F Anderson  Tax assessed value isn't what I would be looking at to determine a purchase price.  In a lot of areas of the country, tax assessed value may actually correlate to value but in Ohio (at least where both of my houses are) the tax assessed value really has nothing to do with the market value.  It's simply a product of whatever multipliers the local municipalities use to determine the taxes that they collect on the property.  

For instance, my first property... purchased for 52K, tax assessed value at 25K, and my appraisal I had done appraised at 68K.  Purchase price, tax assessed value, and appraised value are often independent.  

A better way to figure a fair purchase price would be to A) Talk to a realtor or compare local comps or B) figure out how much you need to make, what your expenses and risks are, what risks you're willing to tolerate, and then go from there.