All Forum Posts by: Tyrell Perry

You can get a nice cash flowing property in Cleveland for under $20K. Keep in mind, these are your older props built in the early 1900s. My standard is that $17K should generate $900 in monthly rent. These are your lower income neighborhoods so only do so if you're willing to engage with these toe of tenants. With that said, if you screen and have systems setup in the area, you'll be fine. By the way, I'm a New York City resident whom invests in Cleveland. In my opinion, Ohio has the best returns and is definitely advantageous for newbies looking to get their foot in the door.

A landlord's insurance policy will be suffice. Insurance covers both the property and the business. I typically get a quote from my broker during the latter stages of closing and add the property to my policy shortly after closing. 

When you mention business license, it appears you mean business entity. You will need to create a business if you want the property to be registered to the business at the time of closing. You can do a subject to formation deal if you want to know if the property has a clean title before starting the business. In the buyer field on the Purchase Agreement, you list the company name (be sure to research its availability) and in parenthesis thereafter, you write "subject to formation." Once you verify a clean title,  you can create the company and then provide the Articles of Incorporation to the title company. 

In terms of your third question, I believe it depends on the holding company. Are you looking to purchase properties under the same entity in which your PA properties are held or are you creating separate entities by each state?

congrats man, keep on churning

well done!

In which city is the property located?

Please see my original post for the answer to your question @Eric Raio

@Henry Chen Yes, there is a tenant concession. Should have cited such in my original post. The lease rent totals $890 and the monthly rent received is $840 given the $50 Property Manager concession. Doesn't affect the numbers but it's worth knowing given that $50 will serve as a tax deduction. If the manager was to leave, I have a contingency in place. The alternative Management company charges 10% of the rent. The management fee would be $90 or $120. I do plan on scaling. At the moment, capital and time is a limitation as I'm planning a multi-family purchase here in NYC. In the process of getting business financing so if everything pans out, I'll begin to advertise deals. I don't care to be an avid wholesaler so I'll simply post the deal and inform my pool of investors. If no one bites, I'll gladly add to my portfolio. Yes, there are deals out there. Currently negotiating my second transaction and I got outbid today on another property which generated a nice return.

Midtown Handyman & Plumbing is a contractor that can assist you with repairs. Check out their online reviews for reassurance.

Got it. Thanks for clarifying.

@Account Closed But you've been saying the cap rate does not change. Why is it remaining stagnant upon property value increases and changing upon property value decreases?

Used WeGoLook as mentioned earlier @Federico Gutierrez

@Chris Washington So what happens to the cap rate if property values were to fall post NOI increase? As stated in your example, NOI goes from $10K to $15K but a market downturn thereafter causes the property value to shrink to $90K.