All Forum Posts by: Vincent Donato

 Correct, Zillow. This was just most recent property I was looking at before making this post. There are others that aren't foreclosed with similar data.

I'm seeking out distressed property on Long Island that could use some rehab. I have come across a handful of properties that are for sale, but were sold within the last 2 or 1 year for sometimes double or triple the price. 

Example: November 2023 sold for 500k
Listed under foreclosure for 260k now.
Photos don't show any updates or signs of any rehab being started.

My first guess it these were bought as rehabs without inspection and people found severe structural issues that they cant afford to remedy, which is common with the amount of water around us on Long Island.

What other assumptions or conclusions would you draw from seeing listing like this one?

Friend of mine is trying to purchase a home on Long Island, New York. He is overbidding by an insane amount and still losing properties, usually to cash offers.

I haven't done research into this for personal real estate purchases so looking for some pros/cons here from my idea.

Can you take out a hard money loan to make a cash offer on a personal home. Then once you close on the house take out a standard 30 year mortgage to pay off the hard money loan? Obviously you'll be paying the interest on that hard money loan, but aside from that, does this work?

I bought a rental duplex in Lakewood, Ohio for 250k back in 2021 when I was living in Cleveland. I now live back in New York so I'm using a property manager to handle the rental. Since then it seems like my property has appreciated almost 100k. This is my only rental property.

I'm contemplating selling the property and taking my profit for a few reasons, but one most of all.

I would say my property is in average, a bit above average condition, but certain things are a bit dry or dated, no central A/C for example. For the moment, it's good enough that the home value and rent value continue to increase with everything else in Lakewood, but is this the peak? I'm sure values overall will continue to rise, but for a 102 year old house will mine start to plateau? The newer more renovated houses will continue to rise but I feel at some point mine will appear as an old dated house that somebody looks at and will want as a cheaper place to fix up and renovate.

Other than this, I don't really enjoy the out-of-state investor aspect of relying on a property manager when this was always a hands on investment for me until I moved away. I could use this capital on a new investment that I could be more hands on with, and it nerves me to think about major renovations or fixes through a property manager that are bound to be needed on a house of this age.

I'm just wondering if I'm overthinking it and silly to sell out on a cash-flowing property in a growing neighborhood at a 3% interest rate.

Thanks for your thoughts and inputs.

Moving to Cleveland and realizing the affordable market here is what brought me into Real Estate. There are great projects for any type of investor. I will agree with others that cash flow is king though, appreciation is tough here. 

Personally, I went the route of purchasing a duplex for long term renters in Lakewood, Ohio. Lakewood is a popular suburb right outside of downtown where a lot of people live to be close to the city but not in it. There is a surplus of renters here. Downside is, taxes are high but the town is very well taken care of.

On the east side of Cleveland, the areas surrounding Cleveland Clinic and Metro Health short and medium term rentals have become extremely popular. Many people live here short term as travel nurses or for treatment at the hospitals. Be careful, just because it is close to the hospital, could still be an awful neighborhood. Things change when you cross a street. Working with an experienced agent and property manager who specializes in those areas will be beneficial. The east side is extremely hit or miss. 

That goes for rentals in the college areas as well. 

I wish you luck, but proceed with caution!

On the bright side I'm glad this didn't shatter your real estate confidence! You will find a solution to this and won't make this mistake again. I think Shane's comment above will be most helpful to you. Connect yourself with more people and you may be able to find somebody who has the funds and would be willing to take the property off of your hands. Get out of the property at a zero or affordable loss that won't kill you. 

I'd also advice reaching out to other plumbers about your issue. Even if they give you the same opinion/pricing, they may have somebody in their network who would take this property over for you.

Where in Cleveland is the property?

I have a rental duplex in Lakewood, Ohio. This older home has older ceiling fans in the bedrooms.

I'm planning to replace all the fans with LED light but wanted to hear peoples experiences on this.

My thoughts are, ceiling fans are another object in a rental that break a lot, they get dusty and gross, and these don't provide much light to the rooms. Tenants never change the lightbulbs on them, and not sure if they even get used. An LED lights up the room so much better and does not get dusty.

No, the house does not have central air, but this is Ohio so A/C window units are commonly used for the couple months of the year they are needed.

 Thank you for the response Charles. The idea of insurance companies software is something I hadn't thought of. My main residence is technically New York, but will be traveling from state to state for the next few months so will never really be at my primary residence for too long. Which is why I thought this be a better idea. 

Okay so instead of replying to everybody I'll make a general reply.

I have a team of contacts available in the area to handle issues. I self managed my property for years before moving away, I'm completely aware of what goes into property management. I travel back to the area frequently and can handle vacancies, scheduling maintenance, repairs, etc.

I'm just looking for a general person who can answer a call and address an issue. Yes I understand that is hard to come by somebody who will prioritize your time to make it over there, which is why I'm asking for the advice.

If you think a property manager is $80 a month I'm not really sure what world you're living in. If both my units turned over in a year I'd be paying the property manager $6,160/year...$513.33/month. That is between monthly payments and costs for filling vacancies. 

I appreciate responses suggesting to find a better property manager, but there's no need to call me cheap. This is a business, we're all here to make money and maximize profits. This forum is for helping others build their best strategy that works for them, not telling them it's wrong. Plenty of people self manage from out of state, it is not impossible if done correctly.

I'm not sure what a sewer backing up and me knowing how much it costs relates to how close I live to my property. 

I have a rental duplex in Ohio which I was doing very well managing myself. Work brought me back to New York so I was forced to hire a property manager.

That didn't go very well. For reasons I will not get into, I fired him. I'm capable of managing the property myself from New York, filling vacancies, calling for maintenance, etc. 

I want to continue to manage the property myself, but I want to hire somebody to do simple things such as viewings, respond to small issues from tenants and address the problem, etc. How do I go about finding somebody like this, and what would you pay them?