All Forum Posts by: Andrew Cheek

Hi @Adam Walter sorry for the late reply here! That is so helpful thank you. I agree with the over valued thought and I didn't realize some of these were held so short term. Interesting. I'll continue researching thank you again. 

Hello again Cincinnati BP!! I was curious at a high level how would we evaluate a deal like this listing from Loopnet?

https://www.loopnet.com/Listing/Portfolio-7-Multifamily-Properties/24256250/

To me the CAP rate is way to low I don't understand that at all. 30% operating costs seems like a reasonable estimate but I haven't really seen sub 5% cap rate before. The properties look like capex is needed for sure. I guess to start do any of you fellow investors have thoughts on a deal like this? What are the risks? How can we better value this deal?

Perhaps current owner is bundling cheaply so they can 1031 easier instead of selling one by one?

Thank you for your thoughts everyone. 

I have a friend who did Section 8 and he liked the cashflow and model quite well. Seems fairly simple to enter, inspection and upkeep essentially. And... when I put up my duplex for every non section 8 inquiry I got probably 5 wanting section 8. Large market for that depending on the area. 

I'm going to do my best to make it to Madtree for the March meeting!

@Joseph Cornwell Great callout on rental demand still being high. A fellow investor I know just bought a duplex in newly re-branded Spring Grove north of Northside. People were asking about the property being rentable with a FOR SALE sign in the yard. Big demand out their in Cinci for rentals. I upped the rents on my duplex by over $150 a side on the last turn, silver lining indeed!

I'm hoping to get property #3 towards the end of this year. I think Cincinnati still has a ton of opportunity if you know where to look. I feel that now things are starting to sit longer and prices are a bit exaggerated but this was expected to happen eventually. I'm hoping buyers will again attain some sort of leverage over sellers listing 100% increase from original purchase. 

Hey there Lance I would love to check this out! Own a duplex over in Covedale and just closed on a SFH. Would love to speak the lingo with other and share our experiences!

@Eric Fernwood This is so helpful wow thank you for breaking down the 2 models so well. I love the high appreciation side. Hard money is a world I might not yet be ready for since I still have a day job and not to much contracting experience. I do like the 5 yr cash out refi. Cincinnati is red hot and rents are going up. I have about 45k in equity on the duplex but just refied it as an investor loan so I could owner occupy property #2. I'm thinking both a HELOC or cash out refi might have to wait for seasoning but not 100% on that. If I can pull around 25k out of the duplex in a year or so that will help to get to prop #3. I will probably live myself in this SFH for a few years.

This thread has been a world of help though. A lot of options and I'm ok with exploring them all. Quantity is my goal. Prop #3 inside 12 months. 

I love Westwood!! Tons of tenants, and yes Westside brewery and new restaurants are a great addition to the area. It is street by street. The closer to the city you get on Harrison Rd and Queen City Ave get rough quickly. C class but good to work with a good realtor if you are OOS so they can help you avoid warzones. Cincinnati is amazing for ROI but street by street in many areas.

I have a 1950's duplex and it has been very solid. Working on the cosmetics can be tricky. A lot of cement backer board and older galvanized pipes can clog easy. It took me 2 days to repair a towel rod due to the crazy pink tile and backer board but I'm not a pro at home repairs myself. You can learn a ton from youtube to help you with basic surface maintenance. You could look for a duplex with solid rental history and a good owner who cleans the gutters, does annual mx on the HVAC, and loves his property. That can lead you into a solid property with low mx. ALWAYS WALK THE PROPERTY WITH YOUR INSPECTOR. They are usually super nice and you will learn a ton by doing this.