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All Forum Posts by: Richard Schubert

Richard Schubert has started 8 posts and replied 99 times.

Post: Looking to build relationships with lenders

Richard SchubertPosted
  • Akron, OH
  • Posts 100
  • Votes 76

It’s amazing how as time goes on that the deals begin to look for me rather than me looking for the deals. I have a line on 1 or 2 off market deals that will need a total renovation. These just suddenly fell in my lap. I am going to look at one of them seriously as the owner had pretty much abandoned the property and I believe it can be purchased for in the teens. I would like to see if any private lenders would be interested in developing a mutual arrangement that works well for both of us. I own some rentals, have a property manager, a good realtor , am currently renovating a home for a long hold rental, I have pretty good credit, and a good w2 job .i have a construction background and a good amount of reserves. I would see these deals through with renovation and most likely cashout refinance to payback the lenders and use the home as a rental. Selling , renting, refinancing would be my exits. Thank you in advance for your time!

A  visit to the area, boots on the ground of a similar mindset, , property manager, realtor, contractors. In that order if it was me shopping for a new market.

Quote from @Stevan Stojakovic:

Hi Michael,


Single-family properties are often better for first-time investors due to lower costs, easier management, and broader resale appeal. However, they can carry more risk if vacant and usually offer less cash flow.

Multi-family properties provide steady income from multiple tenants and scale your portfolio faster, but they require more upfront capital, stricter financing, and can be harder to manage.

If you're new, starting with a single-family home is a simpler way to learn. If you’re confident managing more complexity and have the funds, a small multi-family property could yield higher returns.


Align your decision with your goals, market conditions, and comfort level.


Best of luck, Stevan

I second the opinion of a SFH as your first. My reason is always to point out that your risk is lower and your exit is easier. A nice 3 bed 1 bath around 1200 sq ft is easy to buy, cost very little to maintain, rents easy, and is easy to sell to another investor or a homeowner. If your investment dream does not workout, your risk is lower due to the size and cost of your investment. Cut your teeth on something easy.

Not sure about maple heights/cleveland, but just down the road here in Akron, the Akron housing authority maintains a list of properties and landlords who are actively interested in providing section 8 housing. Referral can come directly. Might be worth checking if there is such thing up there. 

Message me when you’re in town. Maybe I can help.

Post: is the structural engineer correct??

Richard SchubertPosted
  • Akron, OH
  • Posts 100
  • Votes 76
Quote from @Ryan Fox:

@Richard Schubert- Yeah, I'm glad I brought the engineer out because 2 foundation contractors looked at it previously.  One quoted $20k to put piers on 3 sides of the home, and another quoted $10k to put piers on one side.  Because of the difference in opinion, I decided to bring out the engineer, and he's actually saying piering isn't necessary at this point.  

Next time I'll start with the engineer.  

It’s in the foundation repair company’s interest to sell you a repair. They are not wrong, you will eventually need a repair. The engineer is giving you peace of mind that it does not need to happen immediately. I don’t expect they were trying to sell you something you don’t need. There are companies with the customer best interest in mind. I used to do contractor work and we would always inform the customer of their options. Your engineer should be able to approve some options to fix, then have companies quote to the engineers specs. Then you will have an apples to apples price comparison.

Post: is the structural engineer correct??

Richard SchubertPosted
  • Akron, OH
  • Posts 100
  • Votes 76

The reason for the water to be away from the house is water movement from surface water soaking in, such as poor grade or leaking gutters, is it will move the subsoil causing the settling. Almost all foundation issues are because of water movement. Being a slab, your footings are not as deep and more prone to movement . As mentioned, a good foundation repair company can make it good as new. Properly repaired, you should see no value decrease.

Quote from @Drew Sygit:

@Richard Schubert are you having these professionally inspected before you buy them?

That should catch most of these issues.

Some, you'll never know about until someone actually lives in the property. 

What type of interview do you do with existing tenant(s) to ask them about maintenance issues?

Using these, you should be able to get most maintenance issues addressed in less than 90 days.

One other thing, different tenants prioritize different repairs. We've had a tenant move out with no maintenance issues requested for months, only to find many in our MoveOut process or when a new tenant moves in.

I inspect the homes myself. I have a in depth background in construction and tend to understand what quantifies as a major issue more then most. They did not have major issues, just the normal things that come up over time if everything is not new already. I speak with the tenants personally and they are usually happy to tell me all the issues. I can fix any issues we can see and know about right away, it’s the hidden ones that older homes just tend to appear. After a while they seem to work themselves out and get fixed. 
Quote from @V.G Jason:
Quote from @Richard Schubert:
Quote from @Nicholas L.:

@Allen L.

i hear you on the hassle of conventional loans, my portfolio is not as large as yours but I applied for a HELOC last year and it was a huge pain. the loan officer was really helpful and responsive, it was just a lot of paperwork to work through.

i like @Jay Hinrichs idea of just paying cash and refinancing. 


 Can your llc buy it with a Dscr loan and rent it to yourself? Trick a friend of mine did many many years ago. Wrote off the expenses, depreciation, etc 

Is that a trick or just mortgage fraud?

I don't have a solution to this. We own many rentals ourselves, but all primary & second homes we pay cash. We don't deal with financing for owner occupied. 
Can’t be done anymore, a long time ago it was possible. Laws are now passed that prevent you from renting to yourself and claiming all the losses. Think I was just tired when I posted that and after I posted I was thinking it was a waste of a post since it can’t be done anymore anyway.

I think a good option was as Jay mentioned, to buy with cash and refinance later. 
Quote from @Greg Scott:

I never bough SFRs with tenants in them.  The rehab of the vacant was part of the business plan.  We fixed everything in the first 3-5 weeks, plus paint, carpet, landscaping, then rented it out. There were very few problems after that.

I am fully rehabbing one currently and when finished I will rent it out. I don’t expect to have much maintenance with it for a while since most everything will be new. The other two in my post I picked up from OOS investors who had the same property manager as I do. The the transition was seamless and since I know the tenants already had to pass their screening process, I was not concerned about inheriting these tenants. The manager had all the maintenance records, so we knew going in that the previous owners had let them slip a bit. Price was pretty good for that reason.