All Forum Posts by: Chris Eden

Jim - Thanks for the response. I understand, and I do of course plan to talk in more detail during one-on-one conversations.  I am always hesitant to put too many specifics on a public post, because in my experience it is harder to manage different questions, comments, etc. in that format.

To answer your question: I am bringing the deal, a portion of the down payment, day-to-day management of the property and institutional knowledge of the area. My original plan was to wait until late summer or fall to purchase my next property (because I will have the funds saved at that point for another down payment), but this deal came along so I figured it wouldn't hurt to put it out there! 

Hi investors in Northern Kentucky or Cincinnati. I am writing as a new investor. I own one duplex that I purchased in November, and am now in the process of looking for a second property. I found a deal that I believe would be a good buy for potential investors, however I unfortunately do not have the down payment saved up at this point. The property is a duplex in Northern Kentucky with significant cash flow potential. I am hoping to partner with another investor or discuss other options. Please message me if you have any interest in chatting! Thanks. 

Thanks for the advice. Debt to income is something I will keep a close eye on. My fiance and I (soon to be married) have a household income of about $100K combined, plus we will be collecting rent on one unit starting January 1, so my hope is that sometime within the next 12 months that will be sufficient for financing. Within the year I will also be in a position to put 20% down on a less expensive property ($50K and below - which is a reasonable number in my market), so I hope that will help my case as well. I am also keeping an eye out for seller-financed deals in the mean time. 

And thanks for the advice on the business side. I have built somewhat of a team with this first purchase - and agent, lawyer, mortgage broker that I really like - so that is a good thing. My lawyer is a good friend of mine and thinks an LLC is worth it. I just want to make sure I am tracking everything correctly. Right now everything is being run through my personal checking/savings and I do not love that! 

Hi All - I am happy to say I just invested in my first rental property. It's a house-hack. A duplex that will be owner-occupied for the foreseeable future. My big question now is, how do I get ready to buy that elusive 2nd property? I used my FHA loan for this on, so advice on financing options and generally how banks react to someone holding multiple mortgages would be helpful. I have done a lot of research on creative financing (and all things real estate) but just want to put it out there. Secondly, what should I do in the mean time? Focus on business logistics & processes? Setting up separate bank accounts? Create an LLC? This piece is really importatnt to me. Would love to hear from an experienced investor on that front!  I look forward to the discussion! 

Keywords: Buy and hold investing, duplex, multifamily, Northern Kentucky, Cincinnati

Bob - You clearly have much more experience than me, so thanks for the advice!

All in all, I am comfortable focusing on Newport. In fact my search is focused on Newport and east along the riverfront through Dayton. I have avoided Covington and west, because it appears as if Newport's success is having a negative impact on Covington's population (not whole numbers, but quality tenants).

Monmouth Street has truly come back to life recently. Google maps just doesnt do it justice. New restaurants on every block (Sis's, Packhouse, and several others), bars are doing what they do, a new development called "Monmouth Row" at 5th & Monmouth, new city buildings at 10th & 11th and Monmouth. Its a good mix of old (Pepper Pod, Dixie Chili, Knife shop, etc.) and new at the moment. I would argue its better to move out some of the strip club and gambling and move in more family friendly businesses, but its taken some time to find that balance. And It's funny you mention the Ovation property (http://www.bizjournals.com/cincinnati/news/2016/08/17/corporex-buys-nearly-3-acres-for-massive.html) It seems to be alive again. The state is also expanding the AA Highway/Route 9 (it is already about 1/4 done) through the Westside of Newport to increase economic development along that route. That explains why some of the public housing around there has been torn down. Its part of a plan, not just more parking lots

I would encourage you to stay engaged in the region - I would argue that the metro area has in many way's "turned over" from the glory days of the 50s-70s. Maisonette has a new tenant called Boca which is great. Orchids at Palm Court is a top restaurant in the entire Midwest if you ask me! (food in general in the area is amazing right now) Downtown is coming back slowly but surely, the Banks project is on phase 3, GE just moved over 1,00 employees to the riverfront and P&G is consolidating more of there people downtown on a regular basis. Over the Rhine of course is a story in and of itself, and it is pretty amazing what has happened there. And as a whole, both Cincinnati metro and Campbell County are growing (https://en.wikipedia.org/wiki/Cincinnati_metropoli...) especially with millennials and YP’s. All this to say, I clearly have a passion for the area and believe in its potential. Just trying to spread the love. 

I will continue to look into the things you bring up, and I do appreciate the advice. One question though, it appears to me that for a buy-and-hold investor, inflation and fluctuating market demand are not all bad. Of course a rising tide lifts all boats, but generally if the value of your debt decreases while rents and the number of renters increase, that's not a bad thing? The duplex does not have a view, but it is in a very walkable neighborhood with good amenities: new restaurants, shops, police and fire and convenience stores within two blocks. Both units bring about $550 right now, and all utilities are separate and updated so tenants would pay those. I am hoping to add value by slowly renovating kitchens, adding coin laundry and other income generators. I just cant start with a top level property in my price range.

Thanks Brian! 

Matt - I actually live in Bellevue now in a single family rental property (not mine, of course). Bellevue and Newport are both great cities. I have been considering Dayton as well, as there are decent deals there and it appears that the revitalization of the riverfront is making its way to Dayton slowly but surely! I would be interested to hear your thoughts on Latonia. I have been to a couple of open houses and see a lot of deals in the area, but I am on the fence about investing there. 

Bob - Thanks for the advice.  The one things I like about the commercial property is it is a long term small business that is not dependent on one individual (being intentionally vague here). Its also not the primary income driver of the property, which is strange I know. I believe I could manage it but it is a legit concern. You need to come back to Newport, my friend! That characterization of the city could not be further from the truth in 2016. Property 2 is in a very solid, retail part of the city, and number 1 is in a more residential area, but two blocks from police, gas station, laundry, newer restaurants, etc. I have tried to be very picky about my locations.

@Joe Fairless Newbie here. Please add me to your list I would love to attend an event!

Not sure if this group ever got together... I am in Campbell County, a newbie on the brink of my first deal, would love to meet some other folks in the area.

Melissa - Thanks! I hadn't considered a placeholder for prop management. Good advice. As far as CapEx, both properties of course have potential issues (#1: appliances, a roof down the line; #2 a furnace soon, etc.), but the cash flow is very positive on both properties (they both exceed the 2% of total purchase price each month rule). I just looked at a BP blog post on capex with some good rules of thumb, perhaps I need to think more about is and adjust my math... My biggest risk is, if I do this I will be cleaning out my savings with startup costs, so it'll take me a year or so to really build up my emergency funds. Thanks again.