All Forum Posts by: Zach Johns

Hello everyone,

Recently my father proposed a deal to buy rental real estate in San Angelo, TX. My only concern are the property taxes for landlords.

I’m hoping someone can break down how the property taxes work there. Also, where in San Angelo is there cash flowing RE? It seems that property there doesn’t quite fit the 1% rule.

Hope everyone is well and someone could provide a bit more insight into that market.

Thanks.

@Michael Plaks

Is it also a bad idea to form an s-corp to hold LLCs that hold rental property? Curious about your thoughts on that, I thought it would be a good idea

@Linda Weygant

I had a similar situation recently. Not OP, but my accountant recently said that my wife and I can form an S-Corp, and deduct our losses from our rental against our w-2 income. Now we combine to make over the $150k agi limit, but individually, we do not make over 150k.

Is that agi limited to joint filers and single filers? Was my accountant mistaken? Would hope for some insight, I’m having trouble finding this answer.

Thanks.

Good afternoon.

Hope everyone reading is having a good day.

I’m very close to my first rental. I put in an offer on an old home near Cleveland, it was accepted, and I paid for the inspection. But I pulled my offer. The inspection scared me.

The home had several safety issues, where multiple outlets needed to be grounded, all the windows were old / missing, cracks throughout walkway, water in the basement (inspector is not legally allowed to say mold exists, but noted several stains from water). The home was built in 1900 and also had a lot of “settling” in the foundation which also meant the basement would get some water when it rained heavy, but apparently that’s normal for some older homes - nothing to be concerned about according to the inspector.

How do you guys rationalize the purchase of older homes for buy and hold long term investments. Does anyone have specific criteria they use to determine the longevity of the house? I figure the house can’t require major updates within the first couple years since it will take some time for the tenant to pay enough rent that the house has enough savings for the major updates? Do I need to change my mind set for this strategy to work?

Would hope for some insight from someone that has done this.

Thanks.

Hoping to buy my property soon.

Would love to get some PMs about any Prop Mngmt recommendations that you have used on your rentals.

Thanks.

Thanks everyone!  Definitely feeling pulled toward old Brooklyn so I’ll see what comes up in my price range.  

I would also hope a 4/2 duplex could rent for about $650 each side?  Would that be accurate?

I have been preapproved by a lender in the Cleveland area.  Since they are financing, I think they will be cautious about the point of sale, and my realtor should be doing some of his own diligence.  

Thank you everyone for your insight, I’ll trust my gut a bit more.  I’ll also try to reach out to some of you tomorrow.

Hello everyone,

So my wife and I are looking to buy our first investment property. We live in CA, but plan on investing in Cleveland. I will be flying there in a couple weeks, and hopefully we can own our first rental in a couple months. We have been preapproved for a 100k property, and plan on buying a multifamily.  

I've read The Ultimate Guide to Grading Cleveland Neighborhoods and have found it very useful thus far in my search.

Our realtor suggests we look into the Elyria/Lorain parts of OH. However, I've seen lots of property in Old Brooklyn and have heard some good things about the area. The goal of the property is mainly cash flow, but having a good tenant base is nearly as important. My realtor says there have been riots in Cleveland, and lots of the city is unsafe, which is his reasoning for focusing on Lorain/Elyria.

I'm hoping for some insight. Is my realtor correct in his assessment of Lorain/Elyria/Cleveland, or are the riots an excuse for him to stay close to his office in Elyria? Any ideas on the vacancy rates in Lorain/Elyria? I imagine the cash flow in Old Brooklyn would be a bit better than further West. Are there parts of Old Brooklyn that I should avoid when looking at property?

Also looking into the Detroit-Shoreway area.  Would hope for similar insights for that part of Cleveland.

Thanks.