All Forum Posts by: Robert Matelski

Investment Info:

Single-family residence buy & hold investment in Cleveland Heights.

Purchase price: $32,000
Cash invested: $32,000

SFR purchased as in 2017 from out of state investor, required no work (City of Cleveland Heights POS compliant), got a good deal on it because it was rented to a long term tenant paying below market rent (tenant is still there, and is still paying below market rent... which is fine by me for now).

What made you interested in investing in this type of deal?

Stable neighborhood, great prices relative to previous peak values.

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

Cash

How did you add value to the deal?

N/A

What was the outcome?

Ongoing monthly cash flow

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Mike Balamenti

That was great timing, Michael! Though if you had held onto those semi-detached singles (half duplexes) a few more years I think you could have gotten $50-60K each for them. I prefer anything in Euclid that is north of the freeway or alternately south of Euclid Ave. but UP the hill. When I was a kid in the 1980s (long before I moved to CA) I actually lived in one of those semi-detached houses, on Treadwell Avenue... so I know that area very well. I have been focusing more on buying in the city of Cleveland proper now, but near the Euclid border (off of Lakeshore, E. 185th, etc.), as those areas draw solid tenants as well but have much lower property taxes and also now city POS stuff to deal with.

Thanks James. I like Euclid too... but mainly the areas north of the freeway, or south of Euclid Ave. up the hill. Anything off of Euclid Ave. that's not up at the higher elevations seems a little sketchier. I figure it will return to the pre-crash (i.e. 2006) price levels across the board before long, as they were never really too outrageous to begin with. The median household income there is somewhere around $35-40K, which easily supports an owner-occupant SFR purchase price of $90-140K. I intend to hold for a few years and then at some point after a tenant leaves do a simple cosmetic refresh and market to an FHA owner-occupant.

 Thanks James!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35,000
Cash invested: $40,000

SFR purchased as short sale (in 2016), required minor repairs (mainly City of Euclid POS requirements) before renting.

What made you interested in investing in this type of deal?

Properties available for well under their previous peak values, in an area with strong rental demand.

How did you find this deal and how did you negotiate it?

MLS listing

How did you finance this deal?

Cash (no financing)

How did you add value to the deal?

Minor repairs to meet point of sale requirements, and bringing suitable property management to the table

What was the outcome?

Ongoing monthly cash flow while property appreciates (values heading back toward previous, pre-crash levels)

Lessons learned? Challenges?

City of Euclid building department is a pain in the neck. They made things difficult, despite the fact that the house was overall in good condition, and the scope of the POS repairs was minimal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Mike Balamenti is my go-to broker. He knows the Cleveland market very well.

This one is currently at 800 mtm, w/ tenant paying all utilities.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $43,000
Cash invested: $45,000

Condominium unit in Fairfield, CA

What made you interested in investing in this type of deal?

Was able to buy for well under previous peak value.

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

Cash

How did you add value to the deal?

Minor cosmetic work

What was the outcome?

Ongoing regular stable cash flow

Lessons learned? Challenges?

Don't self-manage! I tried to self-manage at first and ended up with a horrible tenant. I now swear by using property managers... it is well worth the 8-12% they charge.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $27,000
Cash invested: $30,000

SFR purchased as short sale, required minor cosmetic updates before renting.

What made you interested in investing in this type of deal?

Properties available for well under their previous peak values, in an area with strong rental demand.

How did you find this deal and how did you negotiate it?

MLS listing

How did you finance this deal?

Cash deal

How did you add value to the deal?

Minor cosmetic work, and bringing suitable property management to the table

What was the outcome?

Ongoing monthly cash flow while property appreciates (values heading back toward previous, pre-crash levels)