All Forum Posts by: Christopher Hughes

@John Anderson 

Point taken, it is just another expense I will need to be mindful of!

Out of curiosity, is it standard to have to pay someone to do the lawn as opposed to expect the tenant to? My question is in relation to SFH's. If so, then this sounds like another expense that must be factored in for someone investing from a distance.

Joshua, This is pretty awesome, congrats on such a big step! Would you mind sharing any insight on your first property purchase? I'm looking to follow a similar path!

Purchased a copy on pre-order and looking forward to reading it after I wrap up Brandon Turner's Rental Property Investing book. Listening to Scott's interview on the podcast made me even more anxious to check out his book.

Originally posted by @James Wise:

Originally posted by @Bhavik Patel:

Hey guys,

I am looking to buy my first rental property within the next year. I've been researching quite a bit the past few months to learn about the different factors involved when evaluating properties. I came across a listing in Cleveland, OH which interests me. Can you please give me any insight on this property?

http://www.loopnet.com/Listing/20265820/7102-Grand-Ave-Cleveland-OH/

Thank you in advance! Eager to hear your thoughts!

Best,

Bhavik

Tenant base for a property like that is too unstable to turn a profit. Constant turnovers, evictions & renovation costs will eat away at your profit.

 Out of curiosity, since this is the reality for that area/tenant base how do properties such as these even exist? I wouldn't assume someone is holding them for a loss. Are these generally all owned by a combination of occupants living there as well as government housing entities who can afford to suffer the financial loss? 

Dave, Thanks for that feedback. I'm not proposing that I am not interested in cultivating relationships, with agents, lenders etc. However when I hear the term private lender as opposed to a traditional bank, doesn't that usually get accompanied by a much more aggressive interest rate? Chris

Hi all, 

Like many of you I'm sure, I've come to this site with the aspirations of changing the long-term financial future for myself and my loved ones. 

Since deciding that I wanted to make REI part of my strategy for financial freedom and long-term financial stability I have been scouring this site, the podcast, numerous REI books etc.

I wanted to make this post as part of a potential reality check, to see if the goals I have are too ambitious. Now I know no one can define what is acceptable as a goal but yourself and I am familiar with the whole 10x mindset etc. But I thought it wouldn't hurt to run my goals by some with actual REI experience or those on a similar path as my own, or many of whom who have already achieved what I hope so.

The REI strategy I hope to pursue is buy & hold rental properties, as discussed in Brandon Turner's Rental Property book. I hope to acquire properties in the $70,000-$100,000 range in decent markets such as Northeast OH which can cash flow $100-$200 each unit after accounting for operating expenses.

My goal is to acquire the initial property through my savings efforts with a 20%~ down payment and then not touch the cash flow for personal consumption but instead roll it into my savings efforts to save faster and acquire a second property, and a third etc. 

From my understanding, taking this approach will not only let me build a portfolio of semi-passive (using a property manager) income generating properties but also save faster/acquire faster due to the increased velocity of savings as I use the cash flow from the acquisitions to assist with my rate of savings in order to be able to purchase more properties. 

I also have read that another potential benefit of this approach aside from the increased cash flow is the diversification of risk in the sense that it is unlikely that something major breaks on many of the properties at once, yet you are actively saving from the monthly rent from each unit as if the expenditure will occur (CapEx, Maintenance, Vacancy etc)

I don't necessarily have a specific dollar figure in mind but it would be nice to get to the point of being able to generate $2,000 a month initially which would allow my wife to stay home with our young children and still be able to steadily save and make future investments. 

I know this is a very broad description but I wanted to make this initial post to get a reality check, encouragement, hear from others who have done the same and been able to supplement their long term financial health and freedom etc. 

I appreciate any and all feedback! 

Chris

Maria,

I don't have direct experience but I am interested in the responses you receive as well. James Wise' posts seem to be full of information and he really knows the area, which is important. I am curious to see folks experience with HW throughout a purchase process and afterwards from the PM perspective as well.

Chris

Hi all,

I am rather new to the forums but have lurked for a while and have been an avid listener to the podcast as well as reading the Brandon Turner "Rental Property Investing" book and a couple of other related readings.

I am currently living in Virginia Beach but originally from Cleveland OH. I am interested in investing in Turnkey opportunities and I have come across a couple of turnkey providers in the area (Holton-Wise, Smartland).

I am hoping to hear from others who have invested with these organizations or turnkey in general. I would initially be looking to acquire properties in the $70,000-$100,000 range. Ideally on the Westside of Cleveland and further west (e.g. Lakewood, Fairview etc) since those are the areas I am the most familiar with and would be the most comfortable investing in.

I am looking to invest in turnkey opportunities as a method to build passive income and long term financial growth for my family. My goal would be to take the cash-flow generated from the first purchase and add it to my savings efforts from towards the second property, and on and on.

I would love to hear from anyone with experience in turnkey investing in Northeast OH and any advice or experience anyone is willing to share. From what I've seen so far, properties in that range tend to offer between $100-$200 a month in cashflow after accounting for expenses.

Thank you in advance for any responses and I look forward to some valuable discussion!

Chris

Congrats, that is a nice looking property and it sounds like you will have a place to live for free and then will have additional income when you're able to move. Can't beat it!