All Forum Posts by: Daniel Kramer

@Account Closed Now you got my brain turning... Have you looked 90 minutes south to Lexington? My wife went to UK, so I've been there dozens of times. I'm not sure what the prices are as I wasn't interest in real estate back then, but my understanding is that they are not outrageous. Beyond the college housing if that's not your jam, there is a TON of medical there. Medical is great for residents looking for extended stays, where you might set up shop as an Airbnb but then find the right person with a stipend that wants to stay longer and book them for a few months. There would be a challenge in that anyone that you bring along on your "team" would have to be licensed in KY if their occupation requires (realtor, attorney, etc). Tenant laws might be a tad different, but nothing that is bringing the concept to a screeching halt. 

@Account Closed completely. Plus, listen/read anything by David Greene, and investing from a distance is 110% possible. But this is a rare case when I would encourage you to look in your backyard. I'm not an expert, but my best friend lived in Covington KY for a couple years. It's an interesting area... much cheaper than Cinci proper, it had a bit of development going on, a nice park, views of the city, probably lower taxes. That's just an example, I am sure there are penetrable markets a little closer that you will have a better handle on than something long distance. 

@Tyler Begley There are deals everywhere. May I ask why you haven't considered your backyard, Cincinnati? Toledo has its benefits but as a beginner I would think that there is some success to be had in the nasty 'nati. It might be a little more expensive than Toledo, but I can't imagine it's completely out of reach. You have a huge advantage knowing your neighborhood.

Dan

That's true, I'm just being obnoxious. In all seriousness, this is my two cents on your first post:

There are pros and cons to college rentals. You know the pros and cons. Some people specialize in that arena and they do very well at it because they thoughtfully design their business operations around those pros and cons. 

There are pros and cons to low-cost areas of Toledo. You know the pros and cons. My biggest caution is to challenge the % rules for expenses. A roof on a 1200 sqft 3/2 costs what a roof on a 1200 sqft 3/2 costs. That cost does not adjust to your rental rates, whether that's $2,400 in Austin or $800 in Toledo. (maybe a little bit, but you get the illustration). So don't plug in 10% for maintenance & capex in Toledo if it needs to be more. You mentioned low-cost Toledo / family rentals sticking around longer... that can be good or bad, depending on the family!

In conclusion, it sounds like you have weighed the pros and cons. They're certainly that. My personal suggestion is going with the area where you feel more comfortable. Then design your business, policies, leases, etc around those pros and cons. Do you feel more comfortable dealing with college students or dealing with C neighborhood Toledo families? You'll be doing a lot of whichever you choose. What are your goals, where do you want to be in 5-10 years, are you working full time or investing full time and will the property of your choosing support that vision? 

Best of luck and let me know if you need any help navigating Toledo neighborhoods. 

Dan 

@Drew McCrory Toledo is a college town, what are you talking about? The rrrrrrrrrrrockets!

@Stone Jin Yeah that was the thing, we knew there was probably a solution but neither of us were experienced enough. Probably could have called a real estate attorney but just didn't.

I agree, they pop up occasionally. Not to give away my strategy but i think my next deal I want a small single family in Sylvania. There are definitely affordable ones that pop up non-MLS occasionally. Plus the convenience to be able to work on it nearby my primary house is key. Better tenants. I'd like that to be my bread and butter. Same for Perrysburg but without the convenience factor for me.

@Stone Jin We did entertain seller financing since I had heard about it on podcasts, but she still owed about half the selling price, which was more than I was willing to put down. And yes, we're going to get some decent cash flow in it, it still met my criteria even though I made some mistakes along the way.

I live in Sylvania, hoping to get deal #2 in Sylvania. It's a little tougher to cash flow with the higher taxes but there are higher ceilings to bring the values up with renovations. Pros and cons, but I'm most familiar with the area.

@Stone Jin That's a good point, I just took one on my primary house to free up a "cash" buy for property #2. There should be some cushion for one on this property as well.

I got it... Ok, not a steal. It was my aunt's, who was an "accidental landlord" on it. I got a little discount for saving her realtor commission and it needed some work, but definitely not a steal by biggerpockets standards.

@Edwin Martinez Sounds good man, you're off and running!

@Michael P. That sounds like a good deal, I like the area. If you're getting that good of rent there, it must be a decent place.

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