All Forum Posts by: Cody M Byre

Quote from @Anthony L Amos Jr:

You would cashflow better with more units in a “mediocre” area, since taxes and purchase price is generally lower. Those are good price points for the Columbus market.

I understand this is true and obvious for LTR strategy. I'm more interested in comparing higher cash-flow strategies such as MTR in nicer neighborhoods to LTR in worse neighborhoods, specifically in Columbus. Currently leaning towards B- and nicer because I'm more interested in long term wealth than just cash flow. Also I have to occupy it, and want to be proud of the product I'm offering to tenants.

Yes, I'm qualified for Columbus, OH.

I'll set up a spreadsheet and get a range of #'s for those strategies. I've read that book and highly recommend it also, but it's been a while since I finished it so it isn't fresh in my mind.

Thanks

I'm qualified for 250k on SF and 350k on MF. Not looking in my location though because it's not a great market to house hack, looking in Columbus, OH.

I'm guessing there is no easy answer to this, but where might I find the numbers to run for MTR, student housing, and rent by the room? Is it fine to just go by a conservative multiple for each? I've heard 2x for STR, 1.5x for MTR. I know running the numbers is simple for LTR. I want to be accurate, yet work quickly when comparing these other strategies' earning potential too.

Quote from @Taylor Dean:

Duplex vs 3/4 unit profitability all depends on the numbers. Are you buying a duplex for $150k or a 4 unit for 400k? The difference in the mortgage alone and how much you can make on rent will give you an idea of which would be better. 

Overall great points and very helpful, thanks! As for the ^above^, the point I'm trying to get at is if having fewer doors in a significantly nicer neighborhood is a worthwhile tradeoff when trying to do a strategy besides LTR. It is easy to run the LTR numbers and decide off of that, but if I'm going after MTR, STR, student housing, or some other strategy to greatly boost cash flow, I'm curious how much of a difference the neighborhood makes and how to quantify that (again, not by LTR numbers). Rent coming from 3 units (4plex) instead of 1 (duplex) sounds way better on the surface, but if I'm trying to do MTR or similar, I don't want to be stuck with tons of vacancies.

My concern comes from David Greene and other top investors consistently warning against C class neighborhoods. Really I just want to ensure my first house hack is a successful one, especially in the long term.

I know that I should be close to hospitals and potentially OSU. I could use help narrowing my focus to what is more likely to be successful.

-What is the minimum class of neighborhood I should consider?

-I was planning on getting a MF. Is SF worth considering?  (I can borrow 350k for MF but only 275k for SF).

-Am I likely to be more profitable with a beautiful duplex in a super nice neighborhood, or a 3-4 unit in a mediocre neighborhood?

If there are any other considerations I haven't thought of, please share. Thanks!

Quote from @Eliott Elias:

Subject to will definitely work. As an investor, the last thing you want to do is assume the loan. Take it over subject to the existing debt. Since there is no equity, the property should have some cash flow to make sense. 

 Why would assuming the loan be such a bad idea as an investor? What about as an owner occupant looking to house hack, would it make sense then?

Do you just mean posting ads at the college campus? Or was there a website you were referring to?

I am a new investor and my mentor advised me to begin with rehabbing mobile homes (MHs). She is in Rhode Island and I live in Washington state, obviously laws differ between states. Washington state has the anti-flipping law and I was curious if this applies to mobile homes. In this law there’s a difference between an “investor” and an “owner” in regards to needing a general contractor license. Ideally, I would prefer to buy the mobile home and do some minor cosmetic repairs, then sell the home within one to two months. What would make me an “owner” for the purposes of following the anti-flipping law?
What other complications with mobile homes and Washington law should I be aware of? Also curious of the possibility of using the BRRRR strategy with MHs, and if doing refi's works any differently than with other residential property types?

Below is an article for reference on the anti-flipping law: http://rowleylegal.com/real-es...

It sounds like your main question is what will make you more over 10 years, selling to invest in stocks or keeping it and renting. While the stock market has fallen, offering some deals, real estate has not. However, I would still argue that keeping the property, renting it out, and then selling it after 10 years is your best and safest bet to make the most money. It likely has the lowest risk of losing money also. You could even look into using it as a medium-term or short-term rental to increase the cash flow.