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Good stuff Kelvin. I'm very interested in multi-units with the prospects of doing some owner-financed condo-conversions.

What's the scoop on this? Seems like a no-brainer on the right kinds of property.

Anyone here got exp. in this game?

I'm thinking in the 20-30 unit range. Older units. Package the paper and sell off the mortgages to other investors?

I know it's been played out on the coasts and in places like FL. However, there's markets here in the great expansive Midwest that haven't hardly been touched by the conversion game. Meanwhile, we've got some really high forclosure rates, and giving an owner-financed opportunity for someone to build into property ownership again seems to be a good way to hedge your bet against transient, destructive tenants.

Plus, structuring a separate paper deal for a higher interest rate certainly seems like a good play.

r2... good post on hustle 101.

I likey!

I've tracked it for a while, and the nearest I can gauge is that Zillow can fluctuate up or down very rapidly based on some formula the software uses to calculate their "Zestimates". Closest proximity sale price has a lot to do with it, and it doesn't necessarily have anything to do with matching #s of BRs BATHs, etc.

It's good for a cursory look at an area with which you're unfamiliar, but I wouldn't try to present a serious funding deal to any investor with numbers based on Zillow's estimates.

With a D controlled legislature, the strong possibility of 2008 tax code changes may impact depreciation schedules.

Has this possibility altered how you are evaluating your deals?

Yes, we just joined Cincinnati REIA. Does Hamilton have another one?

Email me your contact info and we'll connect!

Hey John, thanks for the warm reply.

The wife is super motivated to do more REI. She is a licensed P&C agent in Ohio, so she knows a lot from the insurance end. We've both got a nose for a bargain, and decided that we need to put it into systematic practice. We're also kicking around the idea of raising a small equity fund based on the low vacancy rates and high subprime default rates. I spent some time talking to the Cincy CB Richard Ellis VP and he gave me some real insights on their 2007 state of the local market. Apparently some heavyweight REITs and Pension Funds have been calling from the coasts, trying to horn in on the low vacancy rates and nearly non-existant rental development pipelines that resulted from silly lending. Now everyone's losing their homes and looking for apartments, and the development curve hasn't kept pace.

Dayton is such a tough market. The actual city is a turd hole. I'm uncomfortable going downtown in the middle of the afternoon.

The Cincy/Dayton convergence is really happening right now. Franklin is continuing to develop. My CEO owns the golf course that sits right there on I-75. He's got a mint waiting to happen. We're looking to work New Miami and Hamilton. The new 129 interchange has really made a radical difference in traffic flows, and Liberty & Fairfield Twps are pretty heavily developed in that $180K - $400K entry point. Working class folks who may want to live out a way can still be in Northern Cincy/Tri-County in 20 minutes. The state just resurfaced the 127 corridor through New Miami.

Middletown's got some life since the AK Steel guys are back on contract, but a bunch of them are hanging on by a bare thread financially. A year w/o pay will do that to a debt-laden blue collar family.

I am shooting you a message with the personals. Let me know when you're coming around and maybe we can catch a cold beverage.

Get estoppels.

If you don't the tenant may come along afterwards and say that the old landlord had promised them a new granite counter and a hot tub. They can take you to court over it and win.

Howdy all. Been lurking on the site for quite some time now. In the SW Ohio area (Dayton, Cinci, SE Indiana, NKY)

The wife and I are accidental REIs. We bought a distressed property from a friend a couple of years ago when he couldn't deal with his commercial tenant anymore. Long story but I bought the property on the cheap, problem tenant evicted, CAP rate for the mixed use building is running at 18%. It's currently listed and if I get anything close to my asking price, I will be in for 200% ROI for 2 years.

Then we bought a piece of undeveloped land for a homestead, and in 4 months netween contract signing (6 month land contract) and putting our perm financing in place, the property gained 30% in equity value per appraisal... on dirt... in SE Indiana....

A new Honda plant being built up the road a few miles didn't hurt. :mrgreen:

So, we're hooked. I am interested in wholesaling, maybe some strategic retailing, and definately targeted cashflow. We've joined Cincinnati REIA and look forward to getting involved.