Buying a Residential Multifamily In NW Ohio

[Curtis Hummel]

Hello Everyone,

I was hoping some experienced investors could shed a little insight to help with my first purchase. I live in NW Ohio and after years of renting and saving my wife and I have decided that we will be buying a residential multifamily before our next lease needs to be renewed we would like to "house hack". I have been casually searching and it seems like most of the products I am interested in such as duplex's or quads have several for sale nearby, as well, sometimes on the same street. When I see this it makes me think that there is an oversupply in this particular area.  

Is this a fair assumption to make or are there other factors to consider?

Any recommendations would be greatly appreciated.

Thank you!

[Andrew Fidler]

@Zareth Gray you know we are talking about a a 4 unit apartment building, not a 3 bedroom house, right? 

@Engelo Rumora - let's see what spin I can put on the questions, like my investing strategy...I really just connect with buyers and sellers through networking and see what I can do to bring them value. There's no real master plan beyond the reality that once I have thrived in 43608, there really isn't a tenant I can't manage or a property I can't tackle.

That said there definitely are requests have had to I turn down...I have had investors approach me after they buy the wrong property, in the wrong place, in the wrong condition (really at any price) and I can't responsibly rehab and manage a turd. Those really need to be donated or sold on Craigslist (Detroit Avenue comes to mind).

I have had a bunch of investors come to me post-Sierra Realty (search the forums if you're unaware)...these properties are never what we expect them to be and the owners genuinely need help to avoid walking away from Toledo. I try to do my best to assist those who have been genuinely sold up river, the goal is to invest in Toledo profitably, responsibly and ethically. 

My biggest interest in a client is that they appreciate what I bring to the table vs their own ambition to run everything themselves. It's not going to work out if my company tells the tenant to pay or leave and they contact the owner and get to renegotiate. My goals are to be the best within my niche...I'm not interested in managing all of Ohio or even Lucas County. I am the best within North Toledo, I am also not trying to be the cheapest (call me after you've tried the cheapest in town and see how the return looks).

As to representing buyers for new properties I use an agent contract so if they buy a property off-MLS (which is where most of the deals are) then the buyer pays me directly. Any property I take over as agent I take responsibility for all the way through renovation and tenanting. A major caveat is that I have learned that I don't have enough hours in the day to run concurrent $30k renovations for investors so I am very sensitive to ensuring we are targeting quality properties for basic renovation, not targeting fire-damaged properties for massive rehab.

The natural conclusion of the buyer-agent rehab and rent concept is offering completed and performing rentals at a similar price range as the all-in rehabs so I do offer my regular group of investors a few Turn-Keys...properties that have been in my portfolio for a few years, typically rented Section 8 (which I feel are very stable investments), with my company continuing to manage so the tenants never feel a change in authority. I just value these on the upper end of the market, it allows me to personally keep taking on challenges. (There are no commission or fees on a property I personally own)

I'm not sure I've answered you well Engelo...when my phone rings I try to assist each client in their goals. I turn down more clients than I evict tenants so I'm either smart or stupid...but at the end of the day I try to be building the reputation of Toledo and responsible real estate investors.