All Forum Posts by: Shane Kelly

I think your numbers sound very realistic, which is the unfortunate part. Deals are making less and less sense in the multifamily segment as of recent. Even some of the SFRs that I had thought were out performing multis aren't doing so well right now. Interest rates and high competition have limited the number of deals that I feel truly make sense to a scarily low amount.

 Oh I see what you mean. It's written into the purchase agreement the amount of time the buyer requests to have the inspection done. I normally do 7 days for the general inspection, meaning my buyer has 7 days to schedule the inspection, have it conducted, and then decide if they would still like to continue with the contract.

The contractor is something I would recommend finding a recommendation for from either an agent, another investor, or a PMC. You can have them picked before offering. As for what you mean with relation to the "window" of signing the contract, I'm not 100% what you're asking for here but I can provide an idea that might help. When a property comes on market here in Cleveland, a great deal will be pending in like 1-3 days, a good deal will be off market in like 2-5 days, and even a mediocre deal can still go pending in less than a week in some cases. You have to be ready to act fast.

The standard is having a reliable contractor who you source preferably from another investor who has used them, but an agent or PMC who can vouch for them works too. Other than that, you can pay some amount up front for materials and a "down payment" of sorts and then the rest is disbursed as work is completed.

Yeah, people are buying these deals here in Cleveland that I just can't figure out how they're making money on. I have such a pulse on the market that I can simply look at the list price of the property and instantly know if it'll be worth even considering, and let me tell you, those are few and far between. This year, I think I've found <10 deals total that I think I would buy myself. Some of my clients are less conservative in their numbers and are willing to go through with houses I wouldn't, and I tell them this, but they like what they see. I'd say hold your course. I'd like to hope the conservative investor wins in the long run personally.

I'm from Cleveland, so unfortunately I am a Brown's fan. I do agree that your situation provides a perfect opportunity to move into a small-multi and rehab it while you live there to add value and rent units out. There's also the opportunity to skirt capital gains tax if you were looking to cash in on these properties that you were owner occupying and gaining equity on if you sold within a certain time frame of living there, so you could snowball this into bigger and bigger investment properties as well. Shoot me a PM and we can chat more about how awful the Browns are or about Cleveland real estate stuff.

Yeah, he's very active on here sometimes as said above. James knows the market better than anyone, and is an expert in the field. The deals are the same as a lot of rentals in Cleveland, the numbers can check out but you just need to actually do your due dilligence on the property itself, the neighborhood and the tenant to see if it really makes sense.

I'm not into that neighborhood very much. Some of the areas nearby to it are really rough and drag it down further. However there are some neighborhoods nearby that I do like more, like the little triangle of Cleveland above Garfield Heights is better and Lee-Miles is (mostly) better. Either way, when looking at these rougher parts of the East-side, you need to be careful as a lot of them are street-by-street. Having someone who knows that, and can put boots on the ground is vital to making it work. Best of luck.

Leverage locals to find them. I come across new contractors quite frequently just by working in the field but since you can't do that yourself, make use of the people who can.

I've been using Daniel Banks with Vault Property Inspections and have been very happy with him.