I'm looking to make some connections in Cincinnati

[Wayne Popelka]

Hey everybody!

I'm Wayne- I'm from Chicago (Oak Park). I caught the bug a couple of months ago and I'm looking at Cincinnati as where I think I'd like to start. My wife and I (or maybe just me, we'll see what happens) are thinking about driving out next Saturday to look at a few places. Anyone know any brokers they'd recommend? Preferably one that invests. We'd like to get our feet wet with one or two duplexes that don't need too much work, and then we can look at BRRRR in a year or two when we're more confident about what we're doing.

I've got a ton of questions, both in general and specific to Cincinnati. Something I'm required to avoid due to my day job is section 8 tenants, is that going to be difficult getting started in the 100,000-200,000 range?  How's Evanston? Any other neighborhoods we should be checking out? Anybody looking to make connections? Anybody or anything I should run screaming from? Thus far, I've got a pretty good lender and that's about it. What else do I need to know? Is there anything I can tell you? 

Another question that popped into my head today about commercial loans. Is the more than 4 unit rule that black and white? Is there a little grey that you can squeeze a 5 unit though for conventional loans or anything like that? Or is it just 4 = conventional, 5 = commercial, regardless of other factors? 

[Kyle Bale]

To your first question about section 8 in the $100,000-$200,000 range, I don't think you should have any trouble. Evanston is a pretty good area, C+ to B- properties if I had to paint a broad stroke. If you're looking for places that don't need much work at that range, you might also want to consider Norwood (but far enough away from Bond Hill and North Avondale, south or around St Rt 562).

As far as what else you need to know, I think it just comes down to getting more of your team together and asking more questions on BP! It's great you've found a good lender, now you need to connect with a good realtor and property manager since you'll be needing boots on the ground.

Is there a reason you are looking to Cincinnati instead of areas around you? There are definitely still some good deals to be found in the Chicago 'burbs if you wanted to stay local. Could always get your feet wet with a property near you that you can self-manage.

I would also echo what Joe said about financing multi-units with conventional loans. Anything above 4 units and you'll be needing a commercial loan.