All Forum Posts by: Arman Ahmed

@Cole Jennings

Cleveland can be a solid market for investing, but as an out-of-state investor, it’s important to approach it with a solid plan. Section 8 can offer stable rental income, but tenant screening, property management, and maintenance costs are key factors to consider. Some investors mitigate risks by focusing on B-class neighborhoods with strong rental demand and reliable tenant pools.

Have you had a chance to visit the area yet? It’s always a good idea to walk the neighborhoods, understand rent comps, and connect with local professionals before making a decision. What criteria are you using to select your first property?*

@Isaiah Cuellar

Hi Isaiah,

Welcome to Columbus! I work with many out-of-state investors and can connect you with trusted real estate attorneys, lenders, and property managers who specialize in duplexes and rental properties. I’d be happy to hop on a call or meet in person while you’re in town to discuss your investment goals and how to build the right team for long-term success.

Let’s connect! Looking forward to helping you get set up in Columbus.

@Yossi Gamrasni

Hi Yossi,

I specialize in helping out-of-state investors like yourself, particularly with long-term rental strategies in Cleveland. I’m familiar with the neighborhoods you’re interested in, such as Euclid, South Euclid, Willowick, and others. I can also provide rehab cost estimates based on photos and have connections with trusted contractors for detailed assessments.

Additionally, I have access to off-market opportunities and can help streamline your investment process. Let’s connect, and I’d be happy to discuss how I can assist you with your Cleveland investment goals!

@Eyal Gepstein

Hi Eyal,

It's great to see your interest in Cleveland and San Antonio! I specialize in working with out-of-state investors and have a strong understanding of both traditional and Section 8 rental properties in these markets. I can also help you with BRRRR strategies and portfolio acquisitions to scale quickly.

Let’s connect and discuss your investment goals in more detail. I can provide insights, access to off-market opportunities, and a network of trusted service providers to ensure a smooth investment process.

Looking forward to working together!

@Justin Whitfield

Hi Justin,

It sounds like you’re diving into the Cleveland market and looking for off-market opportunities. I have a strong connection with investors in the area and can provide access to off-market deals. Additionally, I specialize in helping out-of-state investors by offering valuable market insights, deal structure advice, and access to trusted service providers.

Let’s connect, and I can share some strategies to help you secure properties in Cleveland!

Best regards,

Arman

@Melanja K Jones

This is a tough but important lesson for new investors. Turnkey providers like Norada often market themselves as an easy path to real estate investing, but as you experienced, they don’t always have true long-term accountability. Here are some key takeaways for other investors looking at turnkey properties or out-of-state investments:

Lessons from This Experience

1. Proformas Are Marketing Tools, Not Reality

• Vacancy rates, repair costs, and rent growth assumptions are often overly optimistic.

• Always run your own conservative numbers with higher vacancy (8-12%), higher maintenance (10-15%), and realistic rent appreciation (0-3%).

2. Property Management Can Make or Break You

• Don’t blindly trust a provider’s recommended PM. Vet them independently by checking reviews, interviewing multiple options, and getting references from other landlords.

• Understand their lease structure: Keeping late fees for themselves is a huge red flag.

• Check how they handle maintenance: Do they have a markup on repairs? Are they responsive?

3. Remote Investing Isn’t Passive

• Many investors underestimate the work involved. You need systems, oversight, and local contacts in place.

• If you’re remote, consider investing in a market where you have trusted boots on the ground (agent, property manager, handyman).

4. Legal & Tax Realities Matter

• The 750-hour rule for real estate professional tax status is real—most investors won’t qualify.

• Out-of-state tax benefits are minimal unless structured correctly.

5. Exit Strategy Matters

• Before buying, plan your exit. If appreciation or cash flow expectations don’t pan out, can you sell or reposition the property profitably?

• Some markets have high liquidity risk—selling might be harder than expected.

Your Next Steps

If your property has appreciated, selling might be your best option to cut losses. Otherwise, a strong new property manager can stabilize cash flow. If you need a second opinion on options, I’d be happy to help analyze your numbers!

This is a rough experience, but it makes you a far more informed investor going forward. Thanks for sharing—it will help others avoid similar pitfalls.

@Cameron Porter

Cameron,

Typically, tenant-occupied properties sell for the same or less than vacant properties, unless the lease terms are particularly favorable. Here’s why:

When a Tenant-Occupied Property Might Be Worth Less:

1. Below-Market Rent: If tenants are paying under-market rates, the property’s cash flow suffers, reducing its value to investors.

2. Tenant Risk: Difficult or uncooperative tenants can be a headache for new owners, leading to potential legal fees or vacancies.

3. Limited Buyer Pool: Owner-occupants (who might pay more) typically prefer vacant properties.

When a Tenant-Occupied Property Might Be Worth More:

1. Long-Term, High-Quality Tenants: If the lease is at or above market rate with responsible tenants, investors might pay a premium for immediate cash flow.

2. Turnkey Investment: Some buyers want rental income from day one without dealing with leasing.

Key Consideration:

• Cap Rate & Cash Flow Drive Value for Investors. A property with strong rental income, even if tenant-occupied, should be priced based on its return.

If the property is selling for more just because it’s tenant-occupied but the numbers don’t justify it, I’d push back on the pricing. What’s the rent vs. market rate?

@Debbie Nunez

Debbie,

Mobile home investing can be profitable, but there are key factors to consider:

1. Cash Flow Analysis

• Land Lease: $700/month is a significant fixed expense.

• Market Rent: What are similar mobile homes renting for in the park? If rent is below $1,500/month, your margins might be too thin.

• Expenses: Factor in property taxes (if applicable), insurance, maintenance, and vacancy costs.

2. Park Rules & Stability

• Lease Terms: Check if the land lease can increase yearly and by how much. Sudden hikes can kill cash flow.

• Park Management: A well-run park is key. Are there restrictions on renting it out?

• Park Ownership: Corporate vs. private ownership affects lease stability and future rent increases.

3. Exit Strategy

• Resale Value: Mobile homes depreciate like cars unless they are in high-demand parks.

• Financing Challenges: Many buyers won’t qualify for traditional mortgages, limiting resale options.

4. Alternative Approaches

• Seller Financing: If the park allows it, you could sell the home with seller financing to maximize returns.

• Own the Land: If possible, owning land instead of leasing is better long-term.

This could work if rental income is strong, but the land lease cost makes it tricky. Let me know if you want a deeper analysis!

James,

Congrats on getting into real estate at 25! That’s a huge step. A few things to consider:

• Cash Flow vs. Appreciation: At $2,500–$2,600 in rent on a $290K purchase, your numbers are a bit tight for strong cash flow, especially with a 7.35% interest rate. Have you factored in maintenance, capital expenditures, vacancy, and property management (even if you self-manage now, it’s good to budget for it)?

• Long-Term Hold: If your plan is appreciation, make sure the area has strong economic and population growth. If rents can increase over time and you plan to refi when rates drop, this could work out well.

• Scaling: If this is your first deal, it’s a great learning experience. Focus on optimizing cash flow, keeping reserves, and planning for your next purchase.

I work with a lot of investors who start with duplexes and scale up. If you ever want a second set of eyes on your deal or strategies to maximize cash flow, let’s connect!

@Brenda Reems

Brenda,

You’re asking the right questions, and it’s great that you’re digging into the numbers before jumping in. A few things to consider:

• Cash Flow & Returns: Your current rents ($1,800 total) put you just under the 1% rule, but you’re close. If you transition to MTR (mid-term rentals) and can get $1,200–$1,800 per unit, that could significantly boost your cash flow.

• Expense Cushion: Maintenance at $3,000 might be optimistic, especially with a duplex (two of everything). Have you factored in vacancy, capital expenditures (roof, HVAC, plumbing, etc.), and potential management fees?

• Loan Terms: The interest rate and loan terms will play a big role in whether this deal makes sense long-term.

I invest in Columbus, OH, and work with out-of-state investors looking for cash-flowing properties. If you’re open to other markets or want a second set of eyes on your deal analysis, let’s connect. I’d be happy to walk through the numbers with you and see if this aligns with your investment goals!