All Forum Posts by: Daniel Kramer
Daniel Kramer has started 21 posts and replied 111 times.
Post: Toledo Ohio Investing

- Rental Property Investor
- Toledo, OH
- Posts 115
- Votes 72
@Stephen Brown
I actually prefer the suburbs, but it does require putting extra effort up front to get a good deal. The cash flow on paper might not be as good at first glance, but you will likely have
-higher quality tenants that take care of your property and stay a while,
-stable appreciation
-a higher ceiling for ARV
-a good alternative exit strategy (sell/flip)
Dan
Post: New from Northwest / Toledo Ohio

- Rental Property Investor
- Toledo, OH
- Posts 115
- Votes 72
Post: New from Northwest / Toledo Ohio

- Rental Property Investor
- Toledo, OH
- Posts 115
- Votes 72
@Landon Bleau
Congrats on graduating and your new job. I am also a Toledo grad with a full time salary job.
You are 110% correct - house hack. There is no better way to get started so that you can a) build equity b) save on rent so you can pocket your salary for investing. I wish I would have known this earlier and I tell every young person that will listen to do this. You have a short window of Independence where this is socially acceptable before a lady comes into the picture.
Speaking of socially acceptable, do what your friends won't and live like you're broke for a bit. Cook and pack your lunches. Prioritize your debts and get loans paid off.
Some further suggestions regarding the house hack. A small down payment is OK. It's not risky if you get a good deal and you'll want to have some cash on hand to make repairs. As nice as it is to let others pay your mortgage, you will have the responsibility of maintaining a respectable place for those people to live. Getting approved for the loan might be the hardest part of this as a young person with little or no W2 history. It's all about debt-to-income ratio and credit score, so do everything you can to improve those.
Post: First BRRRR investment ?

- Rental Property Investor
- Toledo, OH
- Posts 115
- Votes 72
@Chris Gawlik I know the one you are talking about, I saw some posts from the wholesaler. There are people who do well in that neighborhood, but it's not my niche. It's C/C-, just understand that and make sure you have a rockstar property manager that will be firm and fair with tenants on your behalf.
Dan
Post: Summary of Tax Related Podcasts

- Rental Property Investor
- Toledo, OH
- Posts 115
- Votes 72
I am not a CPA nor do I pretend to be one on TV. Everyone should A) get professional advice from your respective CPA and B) get the new book by Amanda Han & Matthew MacFarland - https://get.biggerpockets.com/taxbook/.
But also for the podcast oriented people, here is a compilation of podcasts episodes that focus on taxes as you refresh your memory heading into 2019 tax prep:
Post: [Calc Review] Help me analyze this deal

- Rental Property Investor
- Toledo, OH
- Posts 115
- Votes 72
@Terri Never I'm not sure where you got this purchase price. It is currently up for auction with local auctioneer Pamela Rose. Starting bid is $850,000. There are things on your report that I believe are unrealistic:
Loan terms: this looks like a residential loan. I don't think you'll find 30 yrs @5% for a commercial loan. Loan points and closing costs seem low as well.
Expenses: When I looked at the auction material, they did not specify any operating expenses beyond taxes. In that case, you have to make some broad and conservative assumptions to protect yourself. If you overestimate, then that's a bonus, but you don't want to underestimate.
- Vacancy: This is a C-ish area, I would give it north of 10%, maybe 11% or 12% as a realistic long-term vacancy rate. They say it's 100% filled currently, but you have no idea what their long-term numbers are.
- Capex: If you're doing repairs upfront, then you might get away with your 5% number but again I would go more conservative with 10%
- Water & Sewer: This is 19 units. Maybe $40 per unit = $760/mo
- Insurance: I have no idea, I don't own any apartment buildings.
- Property Taxes: Auction Brochure states $8,042/half = $1,340/mo
- Repairs: OK
- Electricity: You'll need additional information on who pays utilities. Auction materials do not specify. If it's included in rent, which I suspect it is because those stated rents are kind of high, in my opinion, for the area. Unless you find out for sure that electric is a tenant expense, I would give it $70 per unit per month, or $1,330.
- Garbage: I assume an apartment that size has a dumpster that needs picked up every week or so, you'd have to call somewhere to get a quote.
- Property Management: You don't have this in your model, but the auction materials note that it is professionally managed. Interpret that to mean they have a contract that you will at least have to honor until it runs it's course. Assume 10-12%.
With all those things considered, that should put you toward a more reasonable cap rate. Hope this helps.
Post: Toledo Investor Meetup

- Rental Property Investor
- Toledo, OH
- Posts 115
- Votes 72
Welcome, @Zachary Metler
I never seem to be able to make the meetups, but @Andrew Fidler has all the meetup information.
Post: Labor of Love Flip? Closing in 5 days

- Rental Property Investor
- Toledo, OH
- Posts 115
- Votes 72
@Kim Heretick Also check out high-velocity air conditioning systems. It might be your most expensive option, and you'll have to determine if you'll get enough return for it, but I've seen it done in nicer old homes with boiler heat. Think of it like a non-invasive surgery for your house. Smaller diameter (~4") flexible ducts are used that can snake through the walls.
Post: Investment in the following cities ?

- Rental Property Investor
- Toledo, OH
- Posts 115
- Votes 72
I agree with the positive Toledo sentiments from all the Toledoans. Take this city for what it is - you can meet/exceed 1+% rule in most cases but you won't get crazy appreciation. Invest first for cash flow and only consider a slight appreciation as bonus. It's definitely not Austin, Denver, or Boise but it does have a healthy/steady amount of business and industry. I believe demand is there but you must differentiate. In my latest project (my only project) I think we did a really good job at modernizing the place. It was previously rented for $650 with 80's styling and after listing it at $895, we had an accepted application in 10 days after 50+ contacts and 6 showings. Plus, knock on wood, they've been excellent tenants so far.
Post: Labor of Love Flip? Closing in 5 days

- Rental Property Investor
- Toledo, OH
- Posts 115
- Votes 72
@Kim Heretick Yes, that's the one. I did some digging and the bank is going through bankruptcy so my hope was they would let it go for less, and they did. The mortgage was around 226k and they let it go at 133k. One individual went back and forth with the bank up to 133. I went back and forth with that guy 133 to 153. He quit, I thought I had it after "going once, twice..." Then a 3rd person started bidding and I stopped at my max of 156 😖 It was a cool house, I still have some remorse about not going a little further but I'm also glad I made a game plan and stuck to it.