All Forum Posts by: Dave Poeppelmeier

I just listed my property! (On Zillow) Have had a lot of interest (staying very competitive with the market rents) but sooo many people seem to never read the darn post!
I have clearly mentioned a few times that all parties need to submit an application that must be approved before any showings can happen but people keep requesting showings 😐. Any tips to mitigate this for student rentals, or is it part of the game?

LOLOLOLOLOL, welcome to Student Rentals my friend. No, Zillow is a crap show but a necessary evil. I literally do the same thing: I don't waste my time showing someone a house that they're not going to qualify for, if they even show up for the showing. People see a pretty house (or any house) and simply click the "Schedule a showing" or "Request an application" box. I even have "NOT AVAILABLE UNTIL AUGUST 1ST" as the first sentence in the description. Can people do an application online somewhere on your website or PM software? I also stopped taking Zillow applications. Just fill out your Saved Reply, send it to every person who inquires so you stay good with Fair Housing, and the ones that are truly interested (and have a prayer at qualifying) will fill out the application and pay the fee. Best of luck, and no you're not going crazy. 😉

0 Votes

Quote from @Engelo Rumora:

Quote from @Dave Poeppelmeier:

Quote from @Engelo Rumora:

Quote from @Frank Barletta:

Quote from @Engelo Rumora:

Quote from @Andrew Syrios:

I don't know a lot about Toledo but generally speaking with rates having skyrocketing and prices still creeping up, it makes it very difficult to cashflow on a rental if you use debt. So generally speaking, it's a better time to flip than to buy rentals for the time being. (House hacking is an exception.)

Who uses debt?

Only cash mate hehe 😁

I wish that were the case, but not everyone has cash or wants to tie up their liquidity. It also doesn't allow to scale faster, so its not a strategy for everyone.

Slow and steady wins the race mate.

Too many guru's and marketing companies pumping leverage to rookies because they make more money, the more somebody buys.

Being patient and using all cash to begin is always safer in the long run.

Build the foundation of your portfolio with cash and make it strong.

After a few years, look at using leverage for faster growth.

And only after you have experienced the true income and expenses of your portfolio and not just paper figures.

Cash is King
Cashflow is Queen
Leverage is the Peasant

Just my opinion 🙏

To anyone reading this thread, you do NOT need to have tons of cash to invest in RE. You make money in RE by solving problems, and in my opinion, buying "turnkey" properties with cash solves the least number of problems.
My wife and I started in RE having come from no significant family money. My parents were able to pay for most of my college tuition, my wife's parents paid for even less. We were caught in the Rat Race, me working as a Physical Therapist and my wife as a teacher until our 2nd child came along, and we did the math and found that 2/3 of her take home income would go towards child care. So, she stayed at home with the kids and I busted my *** on the weekends to make up that extra money.

We bought our first property by cashing out what money we had left from our 401k, took the penalty hit, and made the down payment. We were all in on RE, putting all of our extra money we saved toward the next down payment and the renovations. We bought one more house the next year, and one more the year after that. But, a funny thing happened on our way to the Forum: we were able to learn first hand how to manage properties, deal with renters (including the House from Hell and the Renters from Hell on our 3rd property), what to look for in deals, etc. Every house I put a ton of sweat equity in to save money.

The year after that, we sold those 3 and bought our first few Student Rentals. Having participated in our local REIA and other Real Estate groups (Toledo PIN), people started to know what we were doing. Then houses started finding us in addition to the MLS. My wife got her Real Estate license to start looking for houses ourselves, and I was eventually able to leave my W2 job as a PT that I hated and despised, and because a Realtor as well. We are now up to 23 properties, with our goal being 25. We are cash flowing great, and continue to pour those profits back into our houses by replacing roofs, painting/siding, and improving the properties to make them more appealing and to get the Cap Ex taken care of. Once we get half of those Free and Clear, we will be financially independent. When all are Free and Clear, we can do whatever we want essentially.

I tell this story because if we waited to buy a house with cash, we would have never done it. Life would have happened, the money would have gone somewhere else, and I wouldn't be loving the life I currently live in Real Estate. Most people don't have jobs in Silicon Valley with money to burn and buy turnkey houses for cash. There is no "safe" investment in the stock market, real estate, etc., but you have to roll the dice and get in the game. We have had several craps and 7's, but we've hit a lot of points as well.

#getinthegame
#financingisfine
#workhard
#rollthedice

Thanks Dave,

I agree for a realtors sake. Why buy 1 for $100,000 in cash when you can help them get leverage. Use the same capital to buy 5 and you make the 5 x the commission, right?

Make intro to contractor and PM, maybe make a few extra bucks also?

I feel sorry for all of the over leveraged folks when interest rates shot up like they did last year. Especially the ones that had adjustable portfolio loans. Each to their own and nothing personal but there is also the other side of the spectrum where folks don’t know what they are doing, use stupid leverage and get into a lot of trouble. Not related to “turnkey” as you stressed.

Thanks and keep being great 👍

That's the thing Engelo, is that it doesn't matter if I was a Realtor or not regarding building MY portfolio. Why would I take commission on a house I bought and get taxed on it?

Also, I don't expect kickbacks from people I introduce my Investor clients to. I simply want contractors and PMs to take care of my clients, so they have a great experience investing in Toledo.

What I'm talking about is how the little guy can use leverage to get into the game and not have all of their money tied up in one property. If that one property goes bad, the whole portfolio goes bad. If they used that $100k to put down payments on 4 properties and one goes bad, the other 3 are still working.

You have your niche in turnkey properties, and that's fine. But I'm telling the little guy to not feel like they can't get started because they don't have $100k sitting around to buy in cash.

2 Votes

Toledo, Ohio

Quote from @Engelo Rumora:

Quote from @Frank Barletta:

Quote from @Engelo Rumora:

Quote from @Andrew Syrios:

Who uses debt?

Only cash mate hehe 😁

I wish that were the case, but not everyone has cash or wants to tie up their liquidity. It also doesn't allow to scale faster, so its not a strategy for everyone.

4 Votes

Toledo, Ohio

Quote from @Frank Barletta:

Honestly, I would have never guessed that this market is actually not great for rental investments and real strong for fix and flips. Who knew?!

Here is the scoop:

About this Market: Toledo, OH, emerges as a prime market for property flipping, thanks to its combination of affordable purchase prices, economic revitalization, and strong rental demand. The city's ongoing cultural and economic resurgence, supported by proactive local government incentives, enhances property values and attracts a growing population. Strategic geographical positioning near major Midwest cities further amplifies Toledo's appeal, offering investors significant ROI potential through both immediate flips and long-term rental strategies. With its diverse economic base stabilizing the rental market and a community-centric revitalization in full swing, Toledo stands out as a surprisingly lucrative market for real estate investors looking to maximize their investments.

Market Trends and Growth

Price Growth in 43620

Homes with 5+ Bedrooms: In the past year, these properties have shown a substantial increase in median sold prices, rising from $139.9K to $167.4K, a growth of 19.7%. This indicates a strong market demand and a promising opportunity for investors.

Days on the Market (DOM)

Reduced Sale Time: The average sale duration has decreased from 86 days to 67 days year-over-year. This improvement suggests a growing buyer interest and possibly limited inventory, creating favorable conditions for quick turnovers.

Toledo OH - RE Analysis (April 2024) - House Sales (1).pdf

Demographics and Economic Factors

Population and Economic Characteristics

Population Size: With a smaller population of 5,341, 43620 offers less competition in buying and selling, which is beneficial for flippers targeting niche market needs.
Income Levels: The lower median household income ($27,442) suggests a demand for affordable, refurbished homes—ideal for flipping projects aimed at cost-sensitive buyers.

Housing and Ownership Trends

Renter-Occupied Properties: A high percentage (68%) of renter-occupied properties indicates a transient population, potentially less targeted for flipping. However, converting these into desirable, owner-occupied homes could capture untapped market segments, particularly as economic conditions improve.

Age Distribution and Market Demand

Diverse Age Groups: The presence of young adults and an aging population suggests varied housing needs—from starter homes to downsizing options. Tailoring renovations to these demographics can maximize appeal and marketability.

Comparative Analysis with Surrounding Zip Codes

43613 and 43615: These areas, with higher median incomes, might offer opportunities for higher-end flips but may also face stronger competition and higher property costs.
43606 and 43608: While the potential exists, these zip codes may not experience the same level of market appreciation as 43620, which could affect profit margins.

Strategic Recommendations

Investment Focus in 43620

Cost-Effective Renovations: Focus on upgrades that enhance fundamental property values, such as kitchen and bathroom remodels and improvements in curb appeal. These will likely attract both renters looking to become homeowners and first-time buyers seeking affordable options.
Target Market: Position properties to appeal to the existing rental demographic and potential homeowners by offering competitively priced, well-renovated homes.

The big flip, but remember the 70% rule of flipping: 2032 Robinwood Ave, Toledo, 43620

This is the type of home that would work perfectly for the demand, however, this should be converted to a multifamily property most likely a triplex. The most recent comp to sell was 2114 Robinwood Ave, Toledo, 43620 which was converted to a Triplex and sold 8/4/2023.

Ensure the purchase and renovation costs adhere to the 70% rule relative to the after-repair value (ARV), which is estimated at $250K for sound investment planning.

Frank, I would like to see your Permits and Certificate of Appropriateness for this bad boy. This is the Old West End, a historical district in Toledo that has a very strict HOA/Historical Protection group that basically forbids you to use most modern building materials. I agree with others, that Toledo is a rental market and not a flipping market for the most part. I also think it's not right that you're advising people to start flipping in the OWE without knowing what they're getting into. Just my two cents.

3 Votes

Toledo, Ohio

OK, my history is that I do Student Housing, I was in a Fraternity back in the day, and we know that stuff happens. However, this situation is different I feel. If this is only a triplex, then that is much more manageable. I thought you were talking about a huge 12 bedroom house or something, that would be a hard no!

Why do you want to do a Master Lease? I think you're making this more complicated than it has to be. Regarding the leases, do it like you would any other student rental: Kids for each unit and parental cosigners sign the lease and are responsible. Trust me, these kids are much more afraid of their parents that they are the chapter or alumni. Don't do it by the room either, keep the kids as a group so if one guy or girl isn't paying the rent, the other ones are on his butt so you don't start emailing their parents telling them they're behind on rent. Eviction would be like any other eviction, doesn't matter if they're college students or not. If you're going through a Master Lease, then I have no idea how that would work, and it sounds like more attorneys fees to me. You absolutely charge higher rates if it's in close proximity to a University; they're paying a premium to live close to campus. Check out what other student rentals are going for around there though. If you're the highest rent and not the nicest unit, then they're going to sit there.

For insurance, this is the biggie. You need to find a carrier that doesn't restrict Student Housing. PM me and I'll tell you who I use. Whether it's Greeks or regular kids, anyone can throw a party. But if you give them nicer units, they're less likely to destroy them. If you give them a bombed out party pad, then guess what's going to happen...

Lastly, if you're going to be the center of Greek off campus housing, then yes you're inviting some interesting phone calls and situations. I would do monthly inspections if you're going to do this to keep tabs on everything. Student Housing is always more involved and there's no way any intelligent PM takes this project on. I will end with: may the Schwartz be with you.

2 Votes

Quote from @Kevin Sears:

Quote from @Bob Stevens:

Quote from @Pouyan G.:

I'm interested in making a move into section 8 rental properties and ive been looking throughout ohio and a few other areas which will be remote from me. Do property managers charge different fees for section 8 properties? Will the property managers be present for the inspection or is this something that they generally wont do?

NO, I have purchased and sold 100s and 100s ,AND 100s and have done a 1k of move in and outs with sec 8 , all the same. Good for using a PM, I see so many that try and go it alone, it usually never ends well. PM fee is meaningless, about 70- 90 bux a month on a SF, let them handle all.

Good luck

Bob,

What property management company would you recommend in Toledo? Thanks!

Kevin

@Kevin Sears the company I work with, LaPlante Real Estate, we are a PM in Toledo that works mostly with out of town investors. Let me know if you need anything.

0 Votes

Cincinnati, Ohio

Quote from @Mike Paolucci:

Quote from @Ashni Modi:

I am starting out my journey in real estate investing. I live in orange county, California where there is basically nothing under $1 million. Is investing in California still viable? Say if I have 100K available for downpayment, what are some markets for out of state investing? I would like to have a good balance of positive cash flow as well as appreciation. I have heard of Midwest but any recommendations for which cities to look into?

Hey @Ashni Modi.

I'm originally from San Francisco, CA and started investing in 2021. It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH. There's also other markets like Cleveland, Cincinnati, Dayton, Toledo that are also good markets to invest in.

The numbers and landlord laws out here made sense then, and they still do today. I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC.

When it comes to investing in CA, be prepared for what is coming on the Nov ballot. It's called the "Justice for Renters Act." It's basically another reason why I choose not to be a landlord in CA. Here's the link --> "Justice for Renters Act"

Happy to share my experiences. Good luck on your REI journey and property search!!

Good Lord... can't say anyone should be surprised. In Ohio there's no rent control, and in Toledo it's pretty simple: you don't pay your rent, you don't stay in your property. It's roughly 6 weeks from 3-day notice to sheriffs on the front step. I will echo everyone's comments: Find a good PM, stay in C class neighborhoods, know that it's a long game, and that you're going to be writing a personal check now and then if something big goes wrong. Best of luck to you!

1 Vote

Quote from @Engelo Rumora:

Quote from @Victor Soni:

Quote from @Engelo Rumora:

Quote from @Jay Hinrichs:

Quote from @Engelo Rumora:

Quote from @Jay Hinrichs:

Quote from @Ryan Pyle:

Bye bye Mr. Wise!

sub to guys pace and a few others.. .

Just in Orlando mate with Stamper.

Spoke about you fondly and how you saved my A$$ lol

Ended up and Justin's place till 4am.

Fun times and cool cat.

Also, Mihran pinged me via email and I said you suck and to not work with you hehe

I'm jealous, you throwing money around like candy.

What about me, it isn't fair hehe - What About Me

STamper is one cool dude.. Zombie flipper.. did you hit the oyster place he likes.

U know where to find me.. :)

We didn’t mate. Got into town late. Had podcast with Rod Khleif and a few meetings in Sarasota. I’ll ask him now about it

Guys, kinda off topic, but any of you Toledoans know of a good local lender that understands investment rentals refinance?

I would like to refinance all my properties, currently they have zero debt, and I want to use that money to buy more properties.

I live in Holland, Ohio, so I’m in your guys backyard.

… And if you guys have any deals that you would like to pass along, feel free to shoot them my way.

Thanks,

Victor

Croghan is local and does portfolio refinancing. Had a few commercial loans with them over the years 👍

I will second Croghan Colonial. Give Julie Spencer a call: 419-794-9399. I only buy in commercial loans anymore and she has done refinances for me as well.

0 Votes

Toledo, Ohio

Quote from @Michael P.:

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I love seeing who gets the joke and who doesn't.

1 Vote

Quote from @Russell Brazil:

Quote from @Andrew Fidler:

@Moderators How do we "Unfollow" or "Unsubscibe" so we don't get multiple alerts for the daily spam post listing every city in Ohio? Do we have to simply turn off our notifications by town so we are unplugged from BP?

It's getting to that point for me.

Change your keyword alerts. You have them turned on for Classified section. Turn that option off.

Click on the 3 dots on the right of the notification, you can choose to Mute User there.

2 Votes

Cleveland, Ohio

All Forum Posts by: Dave Poeppelmeier

Dave Poeppelmeier has started 16 posts and replied 465 times.

Post: Nearing 1,000 College Student Tenants: Here's what I've Learned

Post: Why I'd focus on Fix and Flip, not renting in Toledo, OH

Post: Why I'd focus on Fix and Flip, not renting in Toledo, OH

Post: Why I'd focus on Fix and Flip, not renting in Toledo, OH

Market Trends and Growth

Price Growth in 43620

Days on the Market (DOM)

Demographics and Economic Factors

Population and Economic Characteristics

Housing and Ownership Trends

Age Distribution and Market Demand

Comparative Analysis with Surrounding Zip Codes

Strategic Recommendations

Investment Focus in 43620

The big flip, but remember the 70% rule of flipping: 2032 Robinwood Ave, Toledo, 43620

Post: Renting out to Fraternity/Sorority

Post: Property management for section 8 property

Post: Out of state investing for Californians

Post: Muting the spam on Bigger Pockets

Post: Is this a good market to invest in?

Post: Will a D-Class 4-Plex in Cleveland make you Money?

Dave Poeppelmeier has started 16 posts and replied 465 times.

Rounded Star Post: Nearing 1,000 College Student Tenants: Here's what I've Learned

Rounded Star Post: Why I'd focus on Fix and Flip, not renting in Toledo, OH

Rounded Star Post: Why I'd focus on Fix and Flip, not renting in Toledo, OH

Rounded Star Post: Why I'd focus on Fix and Flip, not renting in Toledo, OH

Market Trends and Growth

Price Growth in 43620

Days on the Market (DOM)

Demographics and Economic Factors

Population and Economic Characteristics

Housing and Ownership Trends

Age Distribution and Market Demand

Comparative Analysis with Surrounding Zip Codes

Strategic Recommendations

Investment Focus in 43620

The big flip, but remember the 70% rule of flipping: 2032 Robinwood Ave, Toledo, 43620

Rounded Star Post: Renting out to Fraternity/Sorority

Rounded Star Post: Property management for section 8 property

Rounded Star Post: Out of state investing for Californians

Rounded Star Post: Muting the spam on Bigger Pockets

Rounded Star Post: Is this a good market to invest in?

Rounded Star Post: Will a D-Class 4-Plex in Cleveland make you Money?

Post: Nearing 1,000 College Student Tenants: Here's what I've Learned

Post: Why I'd focus on Fix and Flip, not renting in Toledo, OH

Post: Why I'd focus on Fix and Flip, not renting in Toledo, OH

Post: Why I'd focus on Fix and Flip, not renting in Toledo, OH

Post: Renting out to Fraternity/Sorority

Post: Property management for section 8 property

Post: Out of state investing for Californians

Post: Muting the spam on Bigger Pockets

Post: Is this a good market to invest in?

Post: Will a D-Class 4-Plex in Cleveland make you Money?