All Forum Posts by: Sofia Komrskova

You're going to have a tough time finding somebody legitimate to do that for you. The LAIC can be held liable - criminal + civil for any failure to maintain property. Do you have an existing PM that you use who'd be willing to take that on for you? 

Happy to help. Yeah that sounds like a nice little cash cow =). Hold a little longer and see how you feel. Again, if you feel like selling it you'll be in a good position to do so in the upcoming months(Spring-Summer season). Don't forget interest rates are trending down, so you might be able to move it quickly. 

Yeah 20k over the past four years is not great. But honestly 40-45k back in your pocket doesn't do you much good in this market, especially with interest rates the way they are. I'm going to assume your PITI is somewhere in the $700-$800 range. If you really can get it rent-ready for 15-18k then market rent at $1400 isn't terrible. I doubt you'll find a MF that you can get into for 40-45k that will give a similar return that isn't in a terrible neighborhood. Renovate it, put a new tenant in there and then if you still aren't feeling it throw it on the market and see if anyone bites.

True that. 99% of people will stay on the internet, analyzing deals and doing research but when the time comes to pull the trigger on a deal they'll do absolutely nothing. 

It's never a bad time to buy if you can purchase below market value. If the spread between the purchase price and ARV after a value-add is high then you are good to go. If you are a buy and hold investor and have no plan to force equity that is a different story. Rates are still super high and we've seen a ton of appreciation over the past 5 years. Depending on your market it may not make financial sense at all. IMO outside of a few small markets in the southeast the midwest is the only region in the U.S right now where you can purchase property with leverage and still expect a reasonable cash flow.

You invest in the midwest. With the exception of some small markets in the Southeast, places like Cleveland are the only major metro areas where a regular investor can find cash-flowing assets with a mix of appreciation. 

Absolutely ridiculous. As per usual, more regulations = more burdensome b.s for legit PMs and investors. However, if you are an out-of-state slumlord, you can now pass 100% of the financial and legal liability of maintaining a property onto some poor local. Big brain moves down at City Hall. The irony is that this might actually attract more unscrupulous out of state investors. 

Some info below:

https://www.clevelandohio.gov/sites/clevelandohio/files/Loca...

From the City of Cleveland website:

"The City of Cleveland’s definition of “Local Agent in Charge” is in Cleveland Codified Ordinance § 365.01(k). In summary, a LAIC is someone who can take responsibility for a rental property in the same way an owner would. If there are things that need fixed, it’s the LAIC’s responsibility to fix them, if the owner doesn’t. If there is paperwork that needs managed, it’s the LAIC’s responsibility to manage it, if the owner doesn’t. If there are fines to pay, it’s the LAIC’s responsibility to pay them, if the owner doesn’t. A LAIC will be held responsible and liable for any issue at a property if the owner of the property refuses to fulfil their duties. However, the LAIC has the right to turn around and make sure that any costs paid by the LAIC that should have been handled by the property owner are reimbursed by the property owner—ultimately through the courts, if necessary."

Is this for mid term rentals? If so just look on furnished finder for properties in your neighborhood and see what they are renting for. If not then just go on zillow and see what similar apartments in the neighborhood rent for. Check to see how many contacts a listing has received in X amount of days to see if it is competitively priced. What neighborhood is the duplex located in? 

If it's in an area with high appreciation I would try to extract the equity via a HELOC or cash out first. If it's a headache property with little appreciation then definitely sell it, take the cash and move on to the next deal. How confident are you that you'll be able to pick up something good in the 2-4 unit space?

I personally would do a HELOC. I believe the cost-savings far outweigh the risk. Having a line of credit is like having your own personal private money lender. Hard money is expensive.

Some questions to ask yourself to assess risk:

Do you have access to a reliable contractor who can complete the work on time and stick within a budget?

Are you comfortable analyzing ARVs, purchase price, 70% rule, rehab costs, holding costs, etc