All Forum Posts by: Ben Halabi

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $1

We bought this property as a duplex. We're currently converting it into a SFR, will turn it into an Airbnb, and then refi.
PP- $120,000
Rehab- $90,000
ARV- $330,000

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

High appreciating neighborhood and great airbnb neighborhood.

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

Agent friend

How did you finance this deal?

Private money

How did you add value to the deal?

Forcing appreciation through rehab.

What was the outcome?

Currently under reno

I’ve been reading everything on BP. I have two properties in Utah one vacation and one commercial. I’m looking to get into multi family. Originally I was set on Texas as I’ve spent a lot of time there and after finding out about the taxes I second guessed it. I’m looking to build cash flow with some appreciation. Sounds like you can’t have Great appreciation and cash flow. I’ve been considering OKlahoma and everyone seems to be loving Midwest markets like Kansas City and Columbus. I live in California and have been considering doing a brrrr here if it makes sense just a higher entry level. I have made good connections in California as far as a team that could tackle a remodel.

Just looking for advice on where might be a good place to start. Do I focus on KC, Ohio or Oklahoma?

I feel like attempting a brrrr out of state sounds more complicated but is doable. Looking to build passive income as well as get some appreciation over the years.  

I respond almost daily to my inbox from out of state investors interested in Cleveland. Here is my usual reply...

I self manage and do all my own renovations so I don't have any experience in dealing with outside property mgmt. In fact, I believe my numbers have worked out that well because of those factors. Many of the deals that you hear about that sound like they need their own infomercial are in areas I'd never buy and the rest are from folks like me who have boots on the ground and don't mind hard work. That's just my perspective but I'm sure there are more great deals to be had by out of state investors like yourself, especially when comparing to what you find in your home town. The property I bought for 15k wold have been condemned or torn down by many but it was a small home and didn't take much for me and my son's to make it look like new. I'm familiar with the materials I use in a rental or house flip so I don't have to rethink it every time. I keep my costs low and know how to appeal to the majority of home buyers. If I were you, I wouldn't give up on Cleveland just make sure of the neighborhood you're buying in. (44135, 44111 and 44109 are a few I like) I think it should be C class or better. Lower class properties would be a nightmare dealing with from afar. Lastly, my own personal niche is buying smaller homes built in the 40's and 50's. Houses built around here in those decades were built the best by real craftsmen and typically have hardwood floors. Anything older is gonna have maintenance issues with lath and plaster, tampered-with knob and tube wiring, galvanized plumbing and drafty windows. I look for houses that need everything because after a house is rehabbed fully, I know everything about it and all of the major systems have been replaced. Best of luck to you.

(I posted this to help guide would-be investors in the right direction. I don't do property management for others and only use my license for personal use)

Does anyone have any advice on the best way to go about firing a property management company?

Hey BiggerPockets, 

Looking for some insight on who has invested out of state on properties that are run by a solid property management company? I'm looking at several different areas around the country to get my best ROI. One of my main objectives is a steady monthly cash flow built up over 5-10 properties. What are the main pros/cons/things I should know? I currently have a partner in my city who I have a few commercial lots with and don't get too involved with logistics but have the capital to invest. Thank you in advanced!

- Will

Hello everybody! I'm Emily Schultz. I live in Portland, Oregon, will invest in Cleveland, Ohio but currently working on my tan in Scottsdale, Arizona. (I am actually here working and I use sunscreen. It's a business and pleasure trip truly.) I've been a professional dancer almost all my life and recently started thinking about what's next and real estate is the answer!

My husband and I discovered real estate by a lucky roll of the dice. We had just finished a 10-day, silent meditation course and we both came out wondering how we can set ourselves up for the future. My husband stumbled upon Rich Dad Poor Dad, we listened to it together on audiobook and it excited us immensely.  The thirst for knowledge led us to Bigger Pockets. But we had a roadblock that needed to be dealt with. 

I joined BiggerPockets back in October of 2019. At that point, my husband and I had around $27,000 in credit card debt. I didn't want to even begin to network until this was paid off because I wanted the connections I made with people to have the possibility of going somewhere; not just "Okay, well..I will talk to you again in 2 years." I wanted to be able to network more seriously. 

The goal of paying this debt off was very daunting. We had been trying to get it paid off for years and actually had only made the problem worse! We spent a lot of time listening to Bigger Pockets and hearing inspiring stories of people who MADE THINGS HAPPEN. They figured out how to save money and pay off debt even with low paying jobs. They worked more hours, they got creative, they were RELENTLESS and that's what we decided we needed to do. We needed to focus to get the work done. The meditation habits we had learned from our course helped us shift our mindset. No more excuses. But how would we do this? I had an opportunity to come to Arizona for a temporary work assignment that had risk but a possible life changing reward. So we came and we conquered! I am proud to say that our credit card debt is gone! I can't believe it. This accomplishment is only a few days old and I am still in shock.

I now feel ready to become present on the forums and start developing relationships while we save money for our first property.

My husband got his property management license in Oregon so he will be getting hands on experience that we can apply to our own rentals. 

My goal is to have one multifamily unit in Cleveland, Ohio by winter 2020. (We are looking at the city of Lakewood specifically.) We will do a house hack (live in one unit and rent out the others) and finance with Scott's VA loan. We also want a property where we can force appreciation and do the work ourselves. So another obtainable goal I have is to gain handy skills and work with tools! (Not going to lie..I am most excited about demo. Who doesn't want to have an Office Space type experience?) Another goal is to develop a social media presence to inspire others (and keep them entertained as well).

5 year goal: 100 doors  

Thanks for reading! Looking forward to meeting you! And who knows, working together in the future? Anything is possible!

With gratitude and excitement, 

Emily Schultz 

Hello all,

My name is Giuseppe. I am introducing myself as a blank slate to real estate sales and investment. I am currently studying hard to acquire my real estate license in NY. I am originally from Queens, NY and recently moved west to NJ. Any advice for an extremely budding agent?

Greetings,

I'm looking at small multifamily properties in/around Cleveland. I'm investing from out of state so I'm not opposed to other parts of OH with strong rental markets however I have been drawn to the areas around Cleveland (and Pittsburgh, PA) in large part because I'm limited in buying power to properties valued around $100K.

I'm a new investor and foreign to Cleveland so please share any tips that you may have about the area. Please feel free to share your experiences and advice and any insight you may have into making a smart investment decision in this area.

One topic that is of particular interest to me is realistic capX estimates in the area. The majority of properties that I'm looking at were built around 1920 - 1930. Most have been duplexes of roughly 1800 - 1900 sqft. When I 'run my numbers' for this area, I have been calculating capX at 10% of rents but I feel uncertain doing so. Can anyone speak to realistic capX in a property like this? Say each unit rents at $750. Is $150/month really enough for capX on a 1900 sqft duplex? I've also been estimating repairs at 10% of rents.

Thanks! 

Hello,

I am a new investor interested in Brrrr properties seeking a real estate agent that invests themselves or frequently represents investors like me. Also, I am open to network with contractors and other investors. Send me a message if you’d like to connect!

-Alex

Love Bigger Pockets. So much helpful information and so thanks to everyone that has contributed. In need of recommendation for a property management company in both Cleveland, OH area and Nashville, TN. I may have found a good one in Nashville and will keep the community informed when I know more. However, I would love recommendations for the Greater Cleveland area.  I've looked at reviews and called a few places but so far no one has called back. Would really like solid recs from personal experience.