All Forum Posts by: Dan Mitchen

For this particular area, SFH's are worth significantly more than multi's. The city also wants to see more SFH's than rentals to improve the neighborhood, and give tax abatements if you make your improvements energy efficient.

If we kept this multi-family, ARV would be around $200k.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $1

We bought this property as a duplex. We're currently converting it into a SFR, will turn it into an Airbnb, and then refi.
PP- $120,000
Rehab- $90,000
ARV- $330,000

What made you interested in investing in this type of deal?

High appreciating neighborhood and great airbnb neighborhood.

How did you find this deal and how did you negotiate it?

Agent friend

How did you finance this deal?

Private money

How did you add value to the deal?

Forcing appreciation through rehab.

What was the outcome?

Currently under reno

Investment Info:

Single-family residence buy & hold investment in Cleveland.

Purchase price: $55,000
Cash invested: $1,100

BRRRR in the Ohio City neighborhood in Cleveland.
Purchase- $55k
Rehab- $30k
ARV- $165k

What made you interested in investing in this type of deal?

Great BRRRR potential.

How did you find this deal and how did you negotiate it?

An agent friend brought me the deal off-market.

How did you finance this deal?

Private money.

How did you add value to the deal?

Will begin rehab in the next few months, will refi, and then will Airbnb it.

It all depends on where it is specifically. I've watched quite a few investors get burned where the return looks killer on paper, but they ultimately get a lower quality tenant because of the area and end up dumping all of their $ back into the property when the tenant moves out or is evicted.

Two things come to mind.

1- If you adjust to $475k, that'll open up a larger pool of buyers where their agents have their criteria set at $475k max. In that price range in my market, maxes/minimums are usually set in increments of $25k. When you get down to the $100k-$150k range, the price points are usually set in increments of $5k-$10k. Also- if the home isn't staged, you can virtually stage it. I use BoxBrownie and I get quite a bit more showings when I virtually stage my vacant listings. You only need to do a couple rooms (living room, 1 bedroom, and dining room). If you DO decide to do that, ask your agent if they can withdraw the listing for a couple hours and then put it back on. That way, it'll get sent to all the buyer's again and they may view the property differently now that it's staged.

2- Are you familiar with Airbnb and how to determine if there's a market for it in this location? If not, let me know and I'm happy to take a look at shed some guidance.

@James Woyton nice!! I'd personally refi it unless I had an opportunity to deploy that cash into a nice apartment deal in the very near future. With interest rates being so low though, I'd take advantage of interest rates and refi. I'm working on 2 rehabs right now in Cleveland where once I'm done, I'll refi and Airbnb the properties. Flipping them both are pretty appealing (both in the Ohio City area of Cleveland), but refi and Airbnb makes more sense long term.

Also for the apartments- you can get into deals with very little capital if you're able to find the deal off-market and have access to private money.

Awesome work! Would love to see the pictures of the finishes you went with.

Just because they can't see it doesn't mean you can't either. Have you ever pointed something out in the distance (like a hawk in the mountains, deer way out in a field etc) and nobody can see it but you? Same exact thing. Not everyone is going to think like an entrepreneur and see what you see. When I told my family 12 months ago that I was going to start investing in apartment buildings and Airbnb's, I got all the crazy looks too. Fast forward 12 months to today and I have ownership in 100 units (3 apartment buildings), 2 Airbnb's, have a 104 unit complex under contract, and 2 more Airbnb's under contract. 

We went on vacation last month and while we were on a boat, my parents told me numerous times "you should buy one of these houses out here on the lake!"

You can do it my friend!!

 You can buy a property for $20k, but you'll need to put work into the property and you probably won't get a very good quality tenant. I'd look into using that $20k as a down payment with a loan (or seller financing) to buy a better property and to attract a better quality tenant. Your numbers will look good on paper with a $20k property, but tenant turnover will likely hurt you in that range.

I just call people trying to rent their properties and ask if they’d rather sell. Most say no, but if you talk to enough people, you’ll get some that say yes.