Vacant 3Bed/1Bath 4-car garage SFH in Canton Ohio - Cashflow Options?

[Kimberly C.]

I bought a SFH in Canton Ohio last year with the goal of making it a MTR due to the location (STR is NOT an option due to regulations but it is close to various hospitals) and the 4-car garage (makes for a lot of options).

Long story short is I quickly acquired 2 other properties right after and spent all my focus setting these 2 properties up for doing the STR loophole for tax purposes (which was a complete success!).  Now I'm back to this vacant property in Canton and although I still think it would make a great MTR I rather focus on acquiring another property and putting my capital there.

I'm currently weighing all my cashflow options for this Canton property and trying to find the best balance of additional funds and maximum cashflow.

Here are the options I can think of:

*Let PM take over and just LTR it (no extra capital, minimal time managing, minimal cashflow)

*Find someone to manage the MTR (extra capital needed for furnishings, then either rent whole house or rent by the room, better cashflow)

*Rental arbitrage (no extra capital, better cashflow than LTR?)

*Other option I'm not seeing?

If there are any MTR investors in the Canton area, would love to hear your take on cashflow and options for a SFH 3bed/1bath 4-car garage?

[Bonnie Low]

You could manage it as an LTR or an MTR yourself to improve your cash flow. Either option would mean you have to spend a bit more time on the property, but not much. I'm personally not a fan of 3/1s for MTR. While you can potentially rent-by-room, this is a really tough configuration to do that with as 3 unrelated people seldom want to share a bathroom and if they do, they expect a pretty steep discount for it.

When you mentioned rental arbitrage do you mean that you're open to someone renting it from you for the purpose of using it for arbitrage? 

[Kimberly C.]

I definitely don't want to manage this myself right now.  My time is better spent expanding my portfolio and closing on deals.

I agree about the 3/1s for SFHs but if you're at all familiar with Ohio, this is just how homes were built (being from CA myself, I'm definitely used to every single bedroom having it's own bathroom but that's not the norm in other states hehe).

As for rental arbitrage, since I'm the owner of the house, yes I was curious how the cashflow would look if I was open to allowing someone else to rent it FROM me for the purpose of using it for arbitrage (and what the difference would be between the cashflow I'd already get for a LTR).

[Regina Blake]

Hi, I came by to let you know that I am an Ohio Realtor and if you or anyone you know need any assistance with all your real estate needs, please feel free to contact me. Thanks!

Regia Blake-Ohio Realtor

[Brittany Minocchi]

Hey, I think we talked last year. I vote LTR. I cannot see arbitrage, MTR or by-the-room rentals working out in this area. MAYBE MTR, but not enough confidence to recommend that over a LTR.  

[Kimberly C.]

Quote from @Brittany Minocchi:

Hey, I think we talked last year. I vote LTR. I cannot see arbitrage, MTR or by-the-room rentals working out in this area. MAYBE MTR, but not enough confidence to recommend that over a LTR.  

Hi Brittany! Yes, I remember connecting with you last year! LITERALLY before my life blew up and I closed on 2 SFHs for STR on the same day! It's been absolutely insane since then but by and far the single BEST decision I've made. So yeah, now I'm back focusing on that Canton property and my PM is working on the LTR option (as we speak). I agree LTR is the safest and easiest option right now. I was just curious if any other local investors in the area had a different take or feedback. The market has definitely changed a bit in some areas over the past 9 months.

[Brittany Minocchi]

Quote from @Kimberly C.:

Quote from @Brittany Minocchi:

Hey, I think we talked last year. I vote LTR. I cannot see arbitrage, MTR or by-the-room rentals working out in this area. MAYBE MTR, but not enough confidence to recommend that over a LTR.  

Hi Brittany! Yes, I remember connecting with you last year! LITERALLY before my life blew up and I closed on 2 SFHs for STR on the same day! It's been absolutely insane since then but by and far the single BEST decision I've made. So yeah, now I'm back focusing on that Canton property and my PM is working on the LTR option (as we speak). I agree LTR is the safest and easiest option right now. I was just curious if any other local investors in the area had a different take or feedback. The market has definitely changed a bit in some areas over the past 9 months.

 Nice! Glad to hear you're crushing it! 

[Tony Guardado]

Quote from @Kimberly C.:

Quote from @Brittany Minocchi:

Hey, I think we talked last year. I vote LTR. I cannot see arbitrage, MTR or by-the-room rentals working out in this area. MAYBE MTR, but not enough confidence to recommend that over a LTR.  

Hi Brittany! Yes, I remember connecting with you last year! LITERALLY before my life blew up and I closed on 2 SFHs for STR on the same day! It's been absolutely insane since then but by and far the single BEST decision I've made. So yeah, now I'm back focusing on that Canton property and my PM is working on the LTR option (as we speak). I agree LTR is the safest and easiest option right now. I was just curious if any other local investors in the area had a different take or feedback. The market has definitely changed a bit in some areas over the past 9 months.

I vote for LTR as well. Rent for $995/Month. $1100 if Section 8. I'm not a PM but could be available to fill the vacancy once the property is ready.

[Kimberly C.]

Quote from @Tony Guardado:

I vote for LTR as well. Rent for $995/Month. $1100 if Section 8. I'm not a PM but could be available to fill the vacancy once the property is ready.

Another vote for LTR!  As stated previously, my PM is already on this path (and just taking FOREVER ugh).  1 week to fill out and snail mail the city rental application, another week and they say they're waiting on the city to schedule the inspection.  Maybe it takes a month for all of this to get resolved? I have no idea since I'm not local.  BUT if I was local you bet I'd fill out a rental application, hand deliver it to the appropriate office, and then ask to schedule an inspection in 1 day.  I have no idea what I'm paying this PM to do sometimes.  OK rant done. 

[Allen Duan]

Hi Kimberly! I just got back from the MTR Summit and met a great Ohio based STR and MTR property manager. DM me and I'd love to connect you.

[Kimberly C.]

Quote from @Allen Duan:

Hi Kimberly! I just got back from the MTR Summit and met a great Ohio based STR and MTR property manager. DM me and I'd love to connect you.

DM sent. Not interested in STR management (I'm already doing that myself) but am curious what local STR/MTR managers there are in the area. I know there are a BUNCH of out-of-state STR/MTR PMs that will manage properties remotely and I'm definitely not looking for anyone non-local.

[Jack Smith]

Quote from @Kimberly C.:

Quote from @Allen Duan:

Hi Kimberly! I just got back from the MTR Summit and met a great Ohio based STR and MTR property manager. DM me and I'd love to connect you.

DM sent. Not interested in STR management (I'm already doing that myself) but am curious what local STR/MTR managers there are in the area. I know there are a BUNCH of out-of-state STR/MTR PMs that will manage properties remotely and I'm definitely not looking for anyone non-local.

Hi Kimberly, I have both and live outside of Canton.  I've been a LTR rehabber & self managing properties in Canton-Akron area for over 30 years.  Started STR & MTR versions in Akron & Canton, respectively a couple years ago.  Give me a call and we can talk.