All Forum Posts by: Adam Feick

Thanks for the feedback @Michael Baum.  I have looked at AirDNA, Awning, and Rabbu websites with specific addresses.  Rabbu is showing 25% less revenue than the others.  The big difference is occupancy rate is 38% vs 61%.  The properties should still work at the lower rate, I'll know after confirming the other expenses.  

You are correct, distance to the lake and downtown have a major impact on the success of the property.  And Cedar Point is an amazing place.  I grew up not far from there.

There are a few homes in the area that look like a good opportunity for an STR, but I am wondering about the accuracy of the estimates. Does anyone have or know of an STR owner in the area? Looking to have a general discussion.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $53,000
Cash invested: $103,000

Sheriff Sale - Found the property listed online and after due diligence decided to try and buy it.
Bought the property with cash and borrowed against another property for the rehab costs. Expect to be all in around $103,000 with an ARV of $150,000.
Property is a triplex. 1 - 2bd 1ba unit and 2 - 3bd 1 ba units. Gross rents should be $2,100~2,300 per month.

What made you interested in investing in this type of deal?

Discounted property with strong value add and future cash flow.

How did you find this deal and how did you negotiate it?

Found the property online on the sheriff's website.
The sales are all online now, so I entered my highest and best offer. I ended up winning the auction and purchasing the property a month later.

How did you finance this deal?

I paid cash for the property and refinanced another property for the rehab funds.

How did you add value to the deal?

All 3 units will be rehabbed. New floors, paint, appliances, water heaters. Repairs to walls and other areas.

What was the outcome?

Contruction is on-going. 1 unit to be ready in June, 1 in July and 1 in August.

Lessons learned? Challenges?

My first BRRRR property, rehab takes longer than expected but I am very happy with the outcome.

@Alex Etlin  Use Zillow and the auditor's website to look at other properties that sold in the last year or so.  You can look at the auditor's website to understand how close to the sale price they will place the new property value.  

@Kyle Clover HUD and FMR typically includes utilities. So $2,009 would be the rent, gas, electric, etc. The cost of utilities in your area will impact the "net" rent you would receive from Section 8.

To better help you, you can share your BP calculations or save as pdf and post it.  

Otherwise here in Ohio I typically would have the following expenses.

Property Taxes, Local Municipality fee for rental property, Electricity, Gas, Water/Sewer, Trash, Property Insurance, Landscape/Grass Mowing, Property Management, Repair Budget, CapEx Budget.

Let me know how I can best help.  

What specifically do you need help on?  Any idea's where the problem lies?  Income, expense, or is the result not what you are expecting?

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $277,500

Bought 2 Duplexes & 1 Triplex from an investment fund through the MLS.
All units were currently rented. 6 Section 8 tenants.
Most units are under market rent and will be raised to current rents over a period of time.
Most of the units are in need of some repair due to deferred maintenance.

What made you interested in investing in this type of deal?

Cash flow. Rents are in the process of being raised to a gross monthly rent of $4,000 / month. After cleaning up the properties, the rents can be raised further.

How did you find this deal and how did you negotiate it?

On the MLS. Since I was buying multiple properties, I offered a lower price. Eventually we agreed to the final sale price.

How did you finance this deal?

MLS

How did you add value to the deal?

Taking care of deferred maintenance.

What was the outcome?

A successful 1st year. 8% cash on cash return and continuing to raise rents.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Christina Roberto- Realtor- Keller Williams Legacy Group Realty. Ashland, OH

@Leonardo Rodriguez
I suggest joining the Dayton Real Estate Investing Network on FB. They are a great group of local investors that share a lot of know how. There are plenty of referrals for all the people you are looking for. Good luck

@Mollie Hess  There are a few meet ups in the Columbus area.  You would probably start with COIN (Central Ohio Investor Network).  There is a FB page to look through and the next meeting is planned for March 15th at 5pm at The Crest in Clintonville.  I have not been recently, but pre-pandemic this was a fun event with good information and networking opportunities.