All Forum Posts by: Vince Lucas

@Seth Bradley

Building relationship is key. I’m not sure why everyone thinks they can come to Cleveland for the weekend and think they can learn the market. You need to connect with a local who can guide you. But you need to be serious or no one will waste there time.

@Daniel Pinto

I am an appraiser and run a construction company in Cleveland. First off, as stated appraisers do not verify permits. Second, again as mentioned there are some cities that do not require roof permits to be pulled. Doesn’t seem like you have anything to worry about.

Cleveland Remodeling Services is looking to work with/partner will more investors in the Cleveland market. Reach out and see how we can help you on your next rehab project.

You can also check out our facebook page (Cleveland Remodeling Services).

How are active investors sourcing their DEALS in this market (direct to seller, MLS, wholesalers, etc). In this market it seems to be getting harder to find an actual deal. Seems like many buyers are over paying. Any thing you are doing to get a competitive advantage in this market to cut cost?

@CJ M. I see what you are saying but I guess what I am looking at is the $45,000 (less with closing costs and selling cost). Just trying to better understand but why wouldnt just sell it and take those profit?

@CJ M. How do you take the equity out? Lender is still going to want some in there? How much is too much where you are better off just selling to make the profit?

@Kenneth Garrett I get what you are saying with the write offs/depreciation but arent there other avenues that can give you the same/similar results?

@Steven Ko I am not sure how this post would make anyone feel better about themselves. I am trying to better understand the SFR rental model as I cant seem to make sense of it and trying to see if I am missing something is well. I have no ideal what the ideal SFR is or if there is a better alternative to passive income than SFR rentals. Also, I dont remember saying anyone is wrong.

@Stan Butler So you are saying that you pretty much only look at the 1% rule from the financial side? Seems like your return would be rather low and need a ton of SFR to live "passively" off those investments. Are you looking for more appreciation over time or if the cash flow what you are more interested in? I have ran number and seems like only getting a around $200/month until a tenant gets turned over (property management fees and repairs needed) or just repairs over time there is not much cash flow saved. I am just trying to see if SFR are the best route of others like commercial, land contracts, seller financing, private lender or others might be better. Thanks for your response!

@Heath Ryans I guess I just cant figure how a SFR for rental that seems to be worth it. Also, the amount a rentals needed to hit any type of "goal" would be to large

@Steven Ko I get the location issue. But getting a couple $100 a month does not seem to be worth it. If you are investing for appreciation, what if market turns then you have to wait for the rebound to make anything?

@Kenneth Garrett If you are able to do a BRRRR, why not just sell the property rather than having equity sit in a property?

@Nathan Brooks 40 years? Who would/should keep a property for that long? This "cash flow" you refer to will likely get eat up on tenant turn overs and basic repairs over time, no?

@CJ M. If you are able to do a cash out refi, why would you let all that equity sit inside a property?

@Jim K. Im glad you were able to respond because you were the only one who was able to come close to answering my question correctly. I was actually trying to figure out what color it should be and if that would give me the best return on the investment..... I am glad you have a lot of time on your hands to help me with my question. 

@Eoin Bolger feel free to reach out to me. I think I can help you in the Cleveland market.

I am having a hard time figuring out what an “ideal” rental property looks like. Does it need to cash flow a certain amount? Do I measure it by the cap rate? Cash on cash? A certain amount of equity in property? Would like to hear examples of others ideal rentals that they have purchased.