Welcome to Cleveland real estate investor. On this podcast, you'll hear about every aspect of the real estate investment business. You will talk to your rockstar investors about their businesses, how they built them, where they came from, and where they're going. Who am I? I'm Joe Lieber and I've made millions of dollars from the real estate investment business over the last 20 years. If you're ready to hear the good and bad from a guy who's learned this business from the school of hard knocks and get educated by some bad ass entrepreneurs, then put your helmet on, strap on your chin strap. Let's ride.
Hey guys, what's going on? Thanks for tuning in to another episode. Hey, before we get started today, as a quick update, I did a podcast a few weeks ago about, should you evict over utility bills? And you know, we had that talk, but I want to update you on someone that I was going after over utility bills. And you have to be very careful when you're doing this stuff. It would be very strategic almost when you're, you're totally in the right, but when you're going after these tenants. So I called that guy up and said, Hey dude, you know, we got to work this out and need you to pay up, blah, blah, blah. So my suggestion was in the show and retelling you here. I suggested let's split it. Let's split the bill. So we did agree to do that. But before we got there, he started coming at me about the house.
(01:50): He's like, Hey man, the front steps are cracked and someone fell. And I'm just telling you, man, you know, they're not real happy with you and, and this and that. And I was like, dude, really men, you know, you're completely wrong. And now you're going to come after me telling me that I had no idea about that. Someone fell on the front steps. You didn't make me aware of it. And you're alluding to the fact that you're going to want to Sue me now. You know, he didn't, and I didn't come at him very aggressively because hell I don't want to go through a lawsuit. I mean, those never do work out real well. Usually either going to pay an attorney or pay them or have to get your insurance company involved. And I don't want to deal with any of that, but it's just kind of funny how just be mindful of that when you're going to call a tenant and you're going after them because they pay late.
(02:38): And we say, as a habit all the time, they start bringing things up like that. Like, Hey, well the house is the roof's leaking or the basement leaks or this toilet, this and that. And just be ready for that. We also see that a lot when you increase rents is a word of the wise, watch how you're increasing rents on tenants. They don't like that stuff. And then they will ultimately start asking you for things. So you go to raise rent 50 bucks a month, which is what, 600 bucks a year. And then there one, this or that done, you could lose a year or two's worth of cashflow, just I'm making that phone call to raise the rent. And then when you do raise the rent like that, it keeps them looking around, right? You might have turnover that way, because if they're going to be paying what they feel is a premium or right at market rent.
(03:23): And if they don't like the house that they're going to move, then you're gonna have to go through that whole process again, of trying to find a new tenant rehabbing, fixing, filling. So just something to think about today. But today we're going to talk about something different route road we're going to talk about today. Now root road is a turnkey property. I don't use this podcast that pitch anything, but today we're going to do that. And yet this might look like a pitch to you, but whatever I want to talk to about this property, I think it's great. And it's a great opportunity for someone looking to buy turnkey properties here in Cleveland, but I just of want to use it in today's show. So here it goes, I acquire this property through a bank owned foreclosure kind of route road. This is in Lorain County, route Rose, kind of the dividing line between Cuyahoga and Lorraine County.
(04:16): And I've never really purchased real estate in Lorain County before. This is my first house I've ever done in Lorene County. So I was kind of wanting to see what the temperature of the market was going to look like and different things like that and how easy it was to work with the city and how investor friendly they are. And I was very surprised, very surprised how smooth this transaction was and the demand for houses and Lorene County. There's a lot of folks who don't want to live in Cuyahoga and I'm starting to think of some of these sub markets basically might be better than some of the investments in Cuyahoga County, which is where Cleveland is located. So this property here, we acquired a property through bank owned foreclosure, and the basement was jacked, man. It was taken on water down there and there were some major issues.
(05:04): So I brought in a licensed certified bonded waterproofing company and we waterproof this basement, the right way, cost 17 grand to do this. It's a lot of money. And I wasn't really expecting that to get that crazy in it. It's the most I've ever paid to do a basement waterproofing job, but at least now I know it's done, right? And the basement's dry as a bone. And when you're selling turnkey, at least I can rest easy at night if you know what I mean. So it did that. Got a new roof going on right now. It's got new windows, nice updated kitchen bathroom. We didn't do them put new kitchens and bath center, but they were relatively updated when we acquired the asset. It's got two car garage and it's a good spot in Lorain County. Cause a little bit like not off the beaten path, but it's out of the hustle and bustle of the city.
(06:01): And people are really, really like that. Let me give you some information. Your taxes are nine 28 a half. So that's around 150 bucks a month in taxes. Insurance is 30. So tax and insurance are about one 80 a month and the house is rented for eight and a quarter. Now here's thing, I didn't really know what to rent this house for. And I rented it like after I found out and got the person in there. This is really easily, a nine a quarter a month house, if not a thousand dollars a month, the person I rented to is the daughter of a tenant of mine who the mom and dad had rented from me for over 10 years. And they both made a really long time. And the daughter is just like 25 or 28, something like that right now. And she was getting engaged and they wanted to get a house.
(06:54): And that's what I put in there. So I really liked the girl, you know, young girl, her boyfriend, fiance, they're working hard and really trying to make their Mark. So it was exciting. It's a good deal. It's a good opportunity for that man. Like I said, I give it to him later. I give it to him eight and a quarter, two year lease. And they've been there a few months. Now. I like to hold these houses for a few months just to get the bugs out. So to speak like anytime you acquire a new asset, especially, especially a house hasn't been lived in like a bank REO. You never know what could be like wrong. Like Coby, a clogged sewer line could be leaky water lines. There could be just, there's just service calls. There's always service calls in the first couple of months when you're acquiring an asset that you had never owned before.
(07:38): So when I sell these things during key, I like to keep them just for a few months just to make sure it goes smooth. So when you guys buy them, you have the easiest small streamlined experience. Possible cool thing is, so this property is going to be professionally managed by my buddy, Steve Taylor. He is mr. Laurene County, this guy's on his game. He's got about 800 units in management. He's no stranger. I've known him a long time. I even interviewed him at one point on a YouTube channel of mine or something I did back in the day. I don't know if that video is still floating around out there or not, but he's real good. He's on his game. I just talked to him recently. He's looking forward to managing this property for me, for somebody, for some new owner, probably one of the California boys out there.
(08:22): And we call me wanting this thing, or a lot of your London guys are buying right now, I think is really cool. So I hope to hear from one of you, if you have interest in this thing, but you know, just put it out there for you. I think it's a great asset. I'm going to sell it for 75 grand just to be blunt and throw it right out there. Eight and a quarter a month in rent seventy-five thousand dollar purchase price. And if you have interest in it, call me, like I said, I don't like to use the podcast for pitching. This is more of an education format, but I want to see also how the power, I want to say the power of podcast and starting to get a lot of downloads. I'm incredibly grateful for you guys who are loyal listeners and tuning in.
(09:02): And I want to see what the power is of having a, having a podcast. So it's kind of why I'm throwing it out there. I did move a few units. You guys were calling me just getting on my list and wanting to buy stuff. I think that's really cool, but I never, you know, pitch a specific asset. So that's all I want to talk to you about today. It's a quick show today. I'm hanging out here at Catawba with the family. Just want to record something. So I try to keep doing weekly shows. Gosh, it's getting tough to keep pump with content, to be honest, to come up with all this good stuff, but I really appreciate you listening. And if you have any interest in this that, you know, give me a buzz. Call my office (440) 389-3883. Shoot me an email RENTbroker216@gmail.com. Thanks guys. Have a great great day.
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