All Forum Posts by: Patrick Drury

@Michael Addison
If you're just getting started in Cleveland 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.

@Muhammad Danish
If you are looking at 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.

@Michael Addison
Something else worth mentioning is if you plan on buying a QM loan you need to buy it in your personal name. If you plan on buying the rental in an LLC you would need a DSCR loan. There are a lot of forums that discuss this topic, but it's worth mentioning since it's frequently asked here on BP. A lot of people also buy properties in their name with a QM/ conventional loan then do a quit claim deed to their LLC.

@Jason Weidmann
The strategy seems solid. I would just narrow down the markets vs trying to look in 4 markets at once and learn each one it will just be too much info. If you look in Ohio I would check out Columbus and Cleveland. You can find something in both of those markets in your price range

@Benjamin Ying

1. I would start by looking at the macro trends you mentioned then look at the markets that pop out and compare them side by side and see which best aligns with what your looking for 

2. If that market fits what you are looking for and it's closer then I would invest there, but if it doesn't fit what your looking for from a metric standpoint I wouldn't just invest there because a buddy does. 

3.Being able to get a direct flight helps, but I wouldn't make a decision on a market based on that

4. Yes. Having a PM out of state is important 

5. It depends on the area. If you are investing in an A location in Columbus for example it's not going to cashflow. It's a lot of owner-occupants and those areas usually have investors investing in them because they are stable with access to the best tenants. Those areas will eventually cashflow as you pay down debt but definitely not in year 1

@Melissa Stanley
Even if you set up an LLC with a partner there is no inherent tax savings by owning properties in an LLC. It's just a pass-through entity so the income would flow on to your personal and you would pay taxes based the tax bracket you fall in for you personal income (from my understanding). I am not an accountant or tax professional so I would recommend talking to your account about what that means and maybe some strategies on how to reduce your tax liability

@Fulati Paerhati
You can find deals across the Midwest in that price range. I would start by looking at Ohio. There is some solid markets here in Ohio like Columbus and Cleveland 

@Jennifer Gill
The only way to not get any calls about properties is to just sell them all and invest in stocks. It's part of the game. Depending on the county some provide public records of owners' name and numbers to the public thats are attached to the property so people can reach them

@Urvesh Patel
If you are looking in Columbus for MTR I would check out  - 43206, 43201/43202, and 43203

-43206: Nationwide Children's hospital 
-43201/43202: Wexner Medical Center, (This one is brand new) The Arthur G. James Cancer Hospital and Richard J. Solove Research Institute
-43203: Ohio East Hospital 

@Kyler Tarr
If you terminate this deal I would just keep in mind this issue will come up again if you are looking in cleveland. Across the Midwest markets, this will be a common trend. A lot of homes have knob and tube wiring and plaster walls and most were built in 1900-1940. Usually, when I buy stuff in cleveland I do not replace any electrical wiring