All Forum Posts by: Sameer M.

So would you pay $300 to just replace 3 valves? With that, I think $600 is not that bad as they had to go in twice, inspect, get the parts and then repair.

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Thank you all. This was my first time dealing with a remote contractor. Appreciate your feedback.

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Hello Friends,

I recently bough a property in a suburb of Cleveland (Wickliffe) and we had to replace 3 radiator valves on the second floor since they were malfunctioning and there was no heat. It has a Gas bolier 95K btu around 12 years old. It is fine but the problem was found with the radiator valves.

I was charged 330 (110 *3) for the parts and 270 for the labor that included initial investigation and then the actual repairs next day. Is the cost of $600 reasonable for this work? My agreement includes no cost to owner for service calls or markups.

I think the labor looks ok but the parts (valves) seems too costly. I am getting in more details, but on the face of it, does this breakup look reasonable to you?

Also if anyone has any local handyman / contractor recommendations for properties in Cleveland, would appreciate.

Thanks

Sameer

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Thanks all. An update on the rent and vacancy. Found a tenant who moved in less than a week of closing for 1100 per month. Moving on to the next one...

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Thank you all. An update on the actual numbers.

Rent: 1100

Vacancy loss: -128 (Tenant moved in less than a week! Expect 2 years of tenancy)

Taxes: 1860

Maintainance and CapEx reserves: -1100

The CoC comes out to be around 20.5%

On to my next one now :)

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Originally posted by @Bogdan Cirlig:

There you go, see attached numbers.

Thank you very much. This is neat. I just registered to that. The number are inline with what I had calculated (infact mine are more conservative)

The appraisal just came back and it looks good. 84K by comparable sales, 94K by cost to approach value and 91.2K by gross rent value. The appraiser has been appraising in this area for 16+ years so hope the numbers are reasonable. It was actually one of the most thorough appraisal report I have seen.

Will update on the thread as I move forward.

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Originally posted by @Isaac Rowe:

@Sameer M.

Good! That is key, I have seen to many people pay more for properties then they should/need to.

What I meant by neutral is from a 3rd party who doesn't stand to make a bunch of money selling you their home. As long as you have conservative comps from a source you trust!

Thanks. Yes, the rental estimate is is 10% less than the proposed rent and I based it upon other comparibles, rentometer and feedback on this forum.

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Originally posted by @Isaac Rowe:

These are the types of deals that are safer, but don't cashflow as well. There are definitely deals out there that would cashflow better that you could get for 10-20k less in similar areas, but if everything is updated nicely on the home, you may compensate for that with lower maintenance costs long term.

In the long run singles/doubles end up being pretty similar when you take into account increased vacancy rates, water costs, Snow and lawn care on the multi's. Not to mention relsale values.

The most important thing for you on this deal is to make sure you have gotten neutral comps and are confident that if in a year or two you want to sell it, your able to without taking a loss.

Thanks. Yes agree. I think my comps are on the conservative to neutral.

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Originally posted by @Christian Carson:

Wickliffe is OK, and Lake County is probably one of the most dynamic and growing counties in the state.

That said, this deal is way too expensive for me. Given your numbers and a few other standard assumptions for the area, it works out to be an 8% cap. Throw in the substantial risk that your maintenance will run far higher than $720 a year for a 1935 house and the deal can be a real loser. On top of that, I don't expect any appreciation in this area.

As a rule, I will automatically discard any deal where the price is more than 60 times the monthly rent.

I would take my $78k and try to find a duplex. For that price point you can be in a B-C suburb with a duplex or triplex. Heck, you can buy two SFRs if you buy in Euclid just two miles to the west with five figures to spare - but beware the risks of doing this.

Thanks. Will factor that feedback in future. I looked at Euclid and as you rightly pointed out it does have SFRs in 30K to 50K but I decided to pass it for the risks you mentioned. Yes, the deal might be a loser if there are major CapEx that come across.

I have assumed a 2% YoY appreciation over 20 years. Is that reasonable? Or you expect the prices to stay flat or even go down further from where they are today. I am betting on the Cleveland MSA comback over next few years as the economy picks up.

Based on my calculations and assumptions, it looks like a 11%ish IRR

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Originally posted by @Lee Smith:

so one month downtime? Depends on the house, your price range, etc.. In Indy I would recommend you go with 2k+ sq ft, 3+ bedrooms(4 better), and that will significantly cut down your vacancy rates. We generally tend to fill those the quickest and get calls requesting them. You are probably also looking at 80-100k all in on buy rehab and rents, or 100k+ on rent ready units in Indy.

Thanks @Lee Smith

As a side note, do you think the baths (1 vs. 1.5/2) matter that much. I have seen quite a few ranches with 3BR and 1BA. Wonder what people would prefer 2/2 or 3/1.

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All Forum Posts by: Sameer M.

Sameer M. has started 12 posts and replied 48 times.

Post: Cost for boiler service call?

Post: Cost for boiler service call?

Post: Cost for boiler service call?

Post: First rental property in Cleveland suburb (Wickliffe)

Post: Cleveland Suburb SFR analysis

Post: Cleveland Suburb SFR analysis

Post: Cleveland Suburb SFR analysis

Post: Cleveland Suburb SFR analysis

Post: Cleveland Suburb SFR analysis

Post: Indianapolis Vacancy Rates