All Forum Posts by: Patrick Drury

@Garry Lawrence
Nice. I got started the same way. When I was 19 I was washing dishes out of high school in Columbus and then decided to buy a single-family rental. So I bought a cheap single-family rental in a C location. I used to go and bang on the door to collect rent in cash which I don't do anymore, but I learned a ton with my first one. 

1. Do you have any advice for me as a young real estate investor?
   The best piece of advice I can give is just pull the trigger. Too many people get stuck in analysis by paralysis and then before they know it it's been 5 years and they are in the same spot 
   
2. Do you think my age will impact my authority as a landlord?
   Yes. Been there done that. On my first rental, I was dumb enough to tell them I was the landlord which was a mistake. Just tell them you work for the Property management company in my opinion. 
   
   
3. I’m debating whether to furnish the shared areas or just stage them for photos and viewings. Which would you recommend?
   Me personally I wouldn't furnish the common area in a rent by the bedroom college rental.
   
   
4. I plan to put a $600 utility cap in the lease. Is this a good or bad idea?
   I am not familiar with your market, but can you sub-meter all the utilities?/ What is the standard in your market? Maybe some people from Baltimore can chime in
   
   
5. What are your best tips for screening tenants, especially for student renters?
   Check the County court records. If you are going for college students you will most likely also have their parents co-signing for them since most of the students will probably have next to no credit score or income. 
   
   
6. What property management software or tools would you recommend for tracking rent payments, leases, and maintenance requests?
   If you have one rental Google Sheets/Excel is more than enough 
   
   
7. Based on the numbers and my strategy, do you think this is a good investment for my first property? Maybe some people from Baltimore can chime in
   
   
   
   

@Celine Li
I also agree with @Jonathan Greene. Doing a BRRRR that you plan on turning into an air bnb would not be the best as a beginner out of state. Regardless of the market I would buy something more turnkey and get familiar with your PM, agent, and team then look at branching out and buying a BRRRR after the first one is stabilized. People have a hard enough time doing a BRRRR minus the air bnb portion and vice versa doing an air bnb minus the value add. On top of that, add being out of state and that just adds more complexity to it. Start simple

@Nick Cooper
Anything sub 25% down for 2-4 units that are non-owner occupied will be DSCR/ a portfolio product. Last I checked 25% down is still the minimum for a 2-4 unit non-owner occupied conventional loan. You could get a DSCR loan for 20% down non-owner occupied, but the rate will be higher. I have one lender though in Columbus that does 15% down on investment properties non-owner occupied. It's a portfolio product

@Srikanth Kumar
200-250k is a reasonable price range in Cleveland for something that cashflows. 

in terms of areas
I would recommend being in areas on the West Side of Cleveland like West Blvd, Cudell, Old Brooklyn, Clark Fulton, Edgewater, Jefferson, and Brooklyn Centre. The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.


 

@Jeremy Torres
In terms of what's a good offer you would need to check with an agent or do some research on your own of looking at comps in the market. If you plan on living in the property FHA could be a good route to go. Just keep in mind the MIP doesn't come off the loan like normal PMI at 25% equity. Also since it's a 4-unit it would need to meet the sustainability requirement.

@Mahde Atmna
Do you mean like non-US resident loans (foreign national loans) or that you just live in another state in the US? 

@Tyler Edmister
If you are local and have the time to project manage a BRRRR thats about half the battle and it's what most people struggle with. Most people focus on the numbers and then learn the rehab portion through trial and error/ feedback from other investors. Most meet-ups in Columbus usually take place in the warmer months. Make sure to go to those to meet other investors who are investing here locally and ask them questions.

@Denny Knapp
As an investor, you get a good idea of rehab price points by getting quotes from multiple contractors and doing rehabs. The more projects you do the better of an idea you will have on rehab numbers as well as timelines

@Allen McCann
When looking to invest in the Cleveland market I would recommend being in areas on the West Side of Cleveland like West Blvd, Cudell, Old Brooklyn, Clark Fulton, Edgewater, Jefferson, and Brooklyn Centre. The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.

@Maria Jeanette
I would recommend trying to narrow down your search to a state and then 1 market. If you are looking in 3 states and multiple markets in each state it's like drinking from a fire hose on trying to learn those markets. It's too much info and just overwhelms investors.