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Investment Properties in Ohio : Real Estate Advice

  • All356
  • Local Info13
  • Home Buying207
  • Home Selling39
  • Market Conditions1

Activity 93
Sat Oct 14, 2017
Ropergirls74 asked:
A cash deal, I live in Orlando, do I need to look for a private lender in Orlando or Cleveland?
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Tue Jul 4, 2017
Steve Bracero answered:
Sat Jul 1, 2017
Kathy Burgreen answered:
Ignore Steve's reply because there is a lot more you need to know and Steve's reply is not realistic. The truth is as follows:

1. Your side business of lawn mowing will not count if you are paid $300 - 400./month in cash. Lenders need to verify your income that is reported to the IRS and any income earned that is not reported to the IRS does not count. Since you have not filed a tax return yet, lenders will not count your side business.

2. Lenders restrict how low they will write loans for to purchase a home. There are expenses that lenders have to pay and they need to make a profit. Therefore, lenders do not write loans below $100,000. A few or some will go down to $80,000. but any amount below $80,000. will be very difficult to get a loan for. The reason is the costs involved to get a loan for $200,000. is the same as for $80,000. so it doesn't make sense for a lender to write loans for low amounts because they end up losing money instead of making a profit.

3. Do you have a credit score or have you checked your credit? You can go to:
www.annualcreditreport.com and get your credit history then go to FICO's website and get your credit score. Lenders will verify your credit history and credit score. Without a credit score, it will be impossible to get a loan. Review your credit report and make sure there are no mistakes on it. Make sure you are not a victim of ID theft either. For your credit score, the ideal score to get a home loan is 620 or higher. The higher the number, the more options you have.

4. What about your future? I applaud you for thinking about investing in real estate BUT at 19 yrs. you also need to think about other things. Example: college education. What type of career / job do you want? Does it require a college education? How will you pay for it? You need to know that with a high school education, your job opportunities will be severely limited and you won't earn a high income.

5. Don't worry about interest rates so much - even if they do go up (which they will). You need to understand that as interest rates go up, so does savings rates. Example: cash in savings accounts today are not earning much if anything at all. That's because interest rates are really low. When interest rates start to increase, so will savings accounts rates.

6. If you have $11,000. saved, where is it? If it's sitting in a savings account earning 0 interest, that is a very poor choice. You have the ability to open a stock market account and put the money in the stock market. Currently, it's doing really well and people are making money on their investments. You will need to contact a financial advisor for this. Use one of the discount brokerage investment companies so you can avoid some of the hefty fees. Example: Charles Schwab is one.

7. Owning a rental is not as good as you think. These will be some of your issues that you need to think about. Will you do everything or will you pay for a property manager? You need to research what property managers do and how much they cost. It's not free and fees vary. What will you do when things need to be repaired? Again, it costs money. Contact some local contractors and ask how much they charge for things like: hot water heater; roof repairs; plumbing repairs (tenants will call you when their toilet is not flushing or when the drain pipes are stuffed); etc.

8. When you own a rental, you will need to pay property taxes and homeowners insurance. Insurance on a rental is more expensive than a single family home. Start calling insurance companies and ask about costs for an investment property.

9. You should also investigate how Section 8 works and other housing vouchers offered by your city / county. Many low income people are on Section 8 and they all want to rent. The issue is Section 8 is a government subsidy program and although they do pay the landlord directly, Section 8 does NOT pay market rents. They only pay what the government allows which is less than what you want to charge in rent. Find out what the typical Section 8 voucher pays in your area. It varies across the country.

10. How difficult will it be to find tenants? Do you have a system you can use to verify the tenant's income and credit? There are companies that do this but it will cost you money.

Hopefully this information helps. My honest opinion? Put the $11,000. in the stock market, watch your investment on a daily basis, apply for scholarships and get a college education. You have the rest of your life to invest in rental properties.
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Sun May 14, 2017
Lisa Brown asked:
Mon Mar 6, 2017
Steve Liang answered:
The answer is "it depends".

A realtor can certainly give you a average "Days on Market" in your local area, but as an investor, you need to be more specific to get a meaningful and actionable "Days on Market".

Talk to a local realtor and be prepared to provide the following:

Which area (which zip code, or better, which subdivision)
What condition of houses are you considering?
What is the size of houses you are considering?
What is the age of houses you are considering?

Having access to your local MLS would certainly help. I recommend developing a good working relationship with a local investor-friendly realtor.
... more
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Thu Jan 5, 2017
Rob Base asked:
Looking for an investor friendly Real estate agent or title company for investors in Newyork PLEASE get back to me if you can help
0 votes 0 Answers Share Flag
Sun Dec 18, 2016
Die035 asked:
Looking to buy investment property in the Cleveland area
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