All Forum Posts by: Adam Walter

I purchase foreclosures in the Cincinnati-Dayton area both online and at the courthouse.   I don't think it is any quicker going the PSO route vs courthouse.  I feel the main factor determining quickness is the attorney handling the foreclosure for you.

I do believe the PSO sales generate a higher price. There where two identical houses in Huber Heights a few weeks ago. The sheriff sale one went for 91k and the PSO went for 96k. ARV was 135-140k and the sheriff sale one was in pretty good condition. I didn't look at the PSO house, because I felt that I had no chance of getting it for what I wanted.

Auction.com is the biggest PSO. Privatesellingofficer.com and ohioforeclosures.com both advertise the sale in the MLS but also charge a buyer's premium on top of the winning bid. Finally, some counties in Ohio (and all of them will eventually) have gone to an online format instead of the courthouse for the sheriff sale. The biggest issue with them is you have to wire of EFT them the deposit before the sale takes place which is kind of a pain.

@Brianne Leichliter  Wow, what a wonderful detailed post, it brought back many memories of similar situations I've incurred.  I have been in your shoes many times.  Your experience is pretty much spot on with mine over the years.  I would like to add a couple of other experiences and ideas:

• 1)  The judge (magistrate) will 100% grant an extension if the tenant shows up and requests one.  This means you will have to come back next week and do it all over again.  Usually they don't request one because they don't know to, but once the first tenant requests an extension, most of the other tenants that follow that case will request one as well.
• 2)  You were lucky to be early in the docket, I have waited over an hour for my case to be heard before.
• 3)  Covid-19 has changed the process quite a bit, but before Covid, I would have to get to the courthouse 15-20 minutes before 9 am because the metal detector line was so long at 9am.
• 4)  Some magistrates start at 9am, but most start 10-15 minutes afterwards because of the line.  
• 5)  If you are in the City of Cincinnati, make sure you remove the setout in 24-48 hours or they will fine you.   That process is a whole different story!
• 6) non payment of rent only requires a 3-day notice, but given your situation, it was probably best for the 30-day notice then 3-day notice.
• 7) Finally, I would have treated the tenant the same as you.  I don't want to give them any reason to destroy the apartment.  I would have also offered them cash for keys in lieu of going through the eviction process.  In your scenario I would offer them something like $200-$300 to be out of the apartment in 1-2 weeks.  Or I might offer them $300 if out by 1 week, $200 if out by 2 weeks, etc.  Some suggest that they leave the place in broom swept condition, but I just tell them to leave whatever they don't want and I will get rid of it.  This worked for me about 60-70% of the time.  I'd much rather give the tenant $500 than go through the eviction process.  I feel by giving the tenant options, then you are not the bad guy and they are less likely to destroy the apartment.  You didn't evict them they chose to be evicted over taking the cash for keys options.  

I owned many 4 family buildings in Cincinnati but sold them about 3-4 years ago.  Feel free to reach out with any questions you may come across.  

@November Morris The short answer is yes, but they are more difficult to find. Your best option is to reach out to the smaller lenders and credit unions in the area. I’d offer some suggestions but I’m only familiar with lenders in the greater Cincinnati area. I’m doing the same thing and having trouble getting it done due to some lenders pulling back due to COVID 19 and the eviction moratorium. Another thought is private lenders who maybe looking for 7-8% long term returns. 

@Ryan Gandy I am not the best person to ask specific info on BRRRRs; I haven't done it in years. I feel in the current market, it will be easier to find a rental type property than a flip. If I understand your goals, you want to flip a property to use those proceeds to buy a rental. If you don't need those funds to live off of, I would focus on buying a rental properties to BRRRR. I believe many banks are seasoning properties at 6 months.

I buy and sell around 30 properties per year, mainly to wholesale. 90% are rentals, I do this for a living and look every day for deals. Your competition finding flips in Cincinnati is going to be really tough. If I go to a sheriff sale to buy a distressed property in Cincinnati with an ARV of $200,000 which I think I can sell to a rehabber for $115,000, most times it will sell (sight unseen) for $125,000 - $140,000. The big flip operations are buying at slim margins, and savvy homeowners are buying foreclosed properties because they can't find what they like on the MLS.

Flip properties on the MLS are usually sold before they hit the market. That leaves traditional wholesalers who are asking premium prices on flips or don't actually have a deal. Two years ago I started looking outside Hamilton County for deals because of the competition. 4 years ago 100% of my purchases were Hamilton County, now I would say 30-40% are Hamilton County deals, only because I have a good network there.

There is just no inventory and a HUGE demand for rehabbed owner occupied properties.  

@Ryan Gandy  It's deal dependent, generally I look for 15% interest only with a certain percentage down on the purchase.  No prepayment penalties, no points.  Property has to be in Hamilton, Butler, Warren, or Montgomery counties.   I think hard money is going to be around 12-15% and 3-5 points.  Also, I will do lower amounts (under 75k) whereas some of the hard money lenders won't do those.  

I sell distressed properties (mainly rental type) and offer financing with those at better rates than above. I don't have too much availability currently, but check out my website at almaholdingsgroup.com to see some past properties. Have you considered doing a BRRRR? If your goal is buy and hold, that might be easier to do.

Hi @Ryan Gandy.  Welcome to Cincinnati!!  A reputable hard money lender in the area is Darrin Carey with Dayton Capital Partners.  I lend as well and I am a little cheaper and easier, but I don't lend on rehab costs, so you will need to have more skin in the project.  I feel lending will be the least of your worries at this time though.   It will be hard to find a suitable property to flip.  The market in Cincinnati is hot and flippers are buying at thin margins.  I purchase properties at the sheriff sale and am constantly surprised at the sale prices.  

Cincinnati has a very strong REIA and I would recommend checking them out as well.

@Dave Perrotta  It all depends on what your goals and strategies are.  I have been investing in Cincinnati for the past 15 years.  I am currently having a hard time finding good deals in Cincinnati, so I am looking more into the Dayton market, but my goals probably differ from yours.    Feel free to PM me for more information.   

@Susan Tan  Westwood is a pretty large area in Cincinnati, with some areas better than others.  The realtor.com link you provided is on Gobel ave which is a street that primarily has 4-family buildings on it.  The area has seen significant improvement over the past 3-5 years with increased rental rates and renovation, but is also an area that is rougher than other parts of Westwood.  I've managed many 4-family buildings in similar areas to the one on Gobel. I sold a 4-family and 3-family right up the street just yesterday.  I believe your biggest challenge will not be the tenants, it will be finding someone who can properly manage the property.    4-families areas like this require more hands on management and the best property managers in Cincinnati either manage their own portfolio (myself include) or have their own management company.   I'm assuming you are from California and plan on outsourcing the management to someone local.  I would recommend either looking at single family rentals in Westwood or multifamily properties in better areas.  Your return on investment is probably lower, but the risk and maintenance is lower too.  I was making a good return on the one's I had, but it was taking too much of my time and wanted to focus on other areas of investing.   Hope this helps.   Here is a link I just came across about investing in Westwood: https://www.biggerpockets.com/...

@Shlomo Koheler  I believe you are referring to Cincinnati's ordinance regarding lease/options.  With lease/options the owner is ultimately responsible for maintaining and fixing the house in Cincinnati. 

Here is a link regarding Cincinnati land contracts that I found https://finneylawfirm.com/2018/08/03/city-of-cincinnati-enacts-new-land-installment-contract-law/ The author is a well respected local real estate attorney.  

The land contract is be recorded as stated in the article.  Title commitment is negotiable, but I would think the person purchasing the land contract should want one. 

Sure you can do a land contract in Cincinnati, I just did one Friday.    If you are selling to an owner-occupant there are certain rules you should follow because of Dodd-Frank regulations, no balloon payment, no adjustable rates, interest rate not to exceed 8% etc.  If non owner-occupant you're more flexible.  I would have a lawyer write up the first one to make sure you are properly covered.