With the changing Real Estate Market and the up tick in interest new ideas need to become reality. In the past I did excursively cash flow real estate that worked well and got my clients solid assets. in fact one client called me and said that the two properties he had purchased from me was the best producing properties in his portfolio.
Cash flow real estate is still around but not like it used to be and that means we need to change gears and look at new opportunities.
Here are some examples that we are looking at to move forward in today’s market. The first thing that comes to mind is lease optioning a property. I have done a few of these properties around Cleveland. I think you can look at 2 bedroom properties to do this with. We had one property in Bedford that I did that with at 736 Columbus . This property was purchased for just over $11,000 in March of 2011. The tenants lease optioned it until 10/18/13 when they purchased for $60,000. Click here to view the tax records.
Before it was optioned though the client had $14,000 in profit from the rents and made a huge amount of money on the sale. It was around $45,000. These types of properties are often ignored and there is a lot of value in that.
Another example is in Lakewood Ohio this home was also leased optioned on 1/31/13 for $1200 a month. they have leased this property for over 2 years and the client only missed one month’s rent. He netted around $650 a month. The market is now changed to a sellers market and they cannot exercise their option so he is not renewing the contract. When they move out in July we will be remodeling that property and selling it for him. He should make a great return on that.
So you can see that the Lease option, Rent to own is the way to go sometimes. In this market today I believe that it works well with certain properties. If you want to learn more about these types of properties call Brett 216-703-5740.