All Forum Posts by: Daniel Akerman

Originally posted by @Joshua D.:

Daniel Akerman Thanks for your input Daniel i really hope that is the case. Based on appraisals would be more being conservative or would you base it off appraisals which are supposed to be fair market value.

 You have several properties, you'd found good deals, and you're making money. I really don't understand why you are so unsure of yourself? 

@Arturo Borges sounds like you’re searching for properties that are already listed on the MLS, which will give you a really low success rate of finding properties that satisfy the 70% guideline. Think about it: a person listed on the MLS is selling because they more or less chose to, and are marketing their property to the widest possible audience to get the most money possible. Any property listed 30% below market value on the MLS is GUARANTEED to get multiple offers from end users - buyers who will always pay more than investors. You need to be going after distressed properties through a wholesaler or with a direct marketing campaign.

Originally posted by @Art Mimnaugh:

@Daniel Akerman so I am a Bay Area investor that has four 4 plex’s in Columbus all purchased in the last 12 months.   The deals can be had but do require a lot more work and deep knowledge of the areas from your on the ground team.   I have seen and heard stories of investors getting a great deal on a property but can’t get units filled at market rates based on area.   It goes without saying that PM makes a big difference.   I know you are looking for numbers and they do vary but I have a building on east side that I am in at $125k, in a C Area that had rents at $575 that I have pushed up to $625-$650 with all sub-metered tenet paid utilities.   On the west side also pushed up rents by $50-$100 to re-stabilize the property as well as rehabbed a few of the units.   Happy to discuss any Other questions you have as well as some other challenges I have run into if you want to PM me.

Cheers,

Art

 Hey, Art! Thanks for posting. Happy to hear from another Bay Area person! I currently live in NYC, but my mother lives in Pinole and she and I would be partnering on the deals. We're also in touch with David Greene, who is based in the Bay Area and has done lots of out of state investing.

Your experiences are interesting to me, and your deals sound very much like what I'd be looking to do. We're working with about $60k in cash, and looking to purchase something in the $180k-$225k range, 20-25% down, 75-80% LTV. Looking to do BRRRR strategy, so we're looking at getting distressed properties, most likely through wholesalers, getting them fixed up and performing, raising the rents and the underlying value.

How did you source your deals? What particular challenges did you face? Do you have any ongoing challenges that you're wrestling with? What other specific observations do you have about the area, or neighborhoods that are worthwhile? Who can you recommend as part of a "boots on the ground" team?

Originally posted by @Luke H.:

Thanks to everyone for responding and advice.

@Account Closed Anyone know how much extra security deposit and/or (upfront months of rent) I can ask for legally?

 The only pro I see for a landlord in month-to-month is perhaps an easier eviction process. But that's highly dependent on your locality and you should consult with an attorney.

Regarding how much extra security deposit you can ask for legally, that's definitely a question for your attorney and will probably depend on local laws.

The fundamental problem here seems to be the income pool of the market you're in -- if people can't afford the rent, then you're either priced above the market, or you have a market that is very unstable due to the prevailing employment conditions of the people living there. If you're overpriced, then you need to get real and lower the rents. If the problem is the renter pool, then those problems won't go away whether you charge a higher deposit (which many people won't be able to pay anyway), use a lease or month-to-month, or do anything else.

BTW -- I think it's a big mistake to remove your signs. More leads are always better than fewer, even if they are unqualified, because you never know where your next renter will come from. The easy way to limit unqualified leads is to post the price on the sign. A person looking for a $600 rental isn't likely to call on one advertised for $2000.

@Terry Lao Thanks for the link. As I had mentioned in my original post, I've already done all this sort of research, and was looking more for personal stories of where people are finding good deals and good success. Also, one of my problems with the Realtor.com report is that it is not investor-focused and is geared more towards end users (i.e. homeowners). Additionally, it is focused on market growth and sales activity, and neither is necessarily an indicator of good cash-flow investment opportunities. For example, I'm originally from San Francisco, which is #41 on this list of "Top Markets" and it's virtually impossible to cash flow there or anywhere else in the Bay Area, because of the underlying cost basis. Columbus, OH comes in at #75 -- well down the list, but I know for a fact that Columbus is one of the best places to invest in hold properties, and certainly beats out San Francisco, or Vegas, or many of the other cities on this list. I tend to focus on more investor-centric data and reports for my research and to identify markets. What I'm really interested in with this thread is personal experiences.

@Grant Rothenburger I likely wouldn't be going to listed properties unless absolutely necessary, anyway. I'd be focusing on sourcing off-market properties and deals through wholesalers or through direct marketing to distressed owners. 

@Moncy Samuel Thanks for your post. You didn't mention where you are investing or post any details on your deals. Care to share? 

@Robert Ellis Yep, I'm aware of all this, which is why I'm interested in Columbus! So do you have projects or deals you've done in Columbus as an investor you'd like to share? That's what I'm more interested in seeing and what I'd like this thread to be about. Share your deals!

@Joshua D. WHY would you sell???? With these properties, you have a net worth of $600k, gross revenue of over $13,000/month, and, I'm guessing, cash flow of $8,000 - $10,000 a month. PLUS your properties will appreciate over time. Where else could you put your money that would do that? Unless, you're talking about selling and trading up to larger or better properties, I don't see why you would sell. However, you might consider pulling equity out of your portfolio and reinvesting into other properties to make your money work harder.

Thanks for the feedback so far, everyone. Would love to hear more personal accounts and examples of deals you've done. I've already got all the market info, or access to it, so I don't need that so much. I'm more interested in seeing examples of deals you've done or details on some of your experiences investing in whatever area you're finding success in.