All Forum Posts by: Dave Poeppelmeier

Quote from @Michael P.:

Quote from @Steve Vaughan:

Quote from @Steve Sidie:

Quote from @Steve Vaughan:

@Engelo Rumora and Michael P. 

Hello and Thank you Steve, I appreciate it. I will reach out to them.
By the way is it Michael P Zembower? 

 Just Michael P.   Shortened last name so nobody knows.   I'm sure he's active in the Toledo forums.  

is a Toledo realtor/investor and could surely give you the ARV

 We all know the enigma of @Michael P. here in Toledo. Anyway, yes I would be happy to help if you want to PM me the address. Toledo is a very neighborhood-centric town and values can change quickly when you cross a street or other natural land barrier. 

Quote from @Oscar Padilla:

Hello, I am an out of state investor from California looking at the Ohio Market, I was wondering what would be best practices to get financing for deals less than 70k, banks and lenders I have contacted have mentioned they dont finance deals that low. Also, if the ARV is near 100 would using hard/private money work and then refinancing? I am assuming it would be smart to have that discussion with a bank/lender if they were going to be able to refinance before doing so.

You need to get local financing. I'm sure $60k is a parking spot in Santa Cruz, but it's Tuesday here in Toledo. Regardless of where you invest in Ohio or any other market, the local lenders will be accustomed to these lower purchase prices because, well, that's just the way it is here. Local financing also lessens the "California Buyer" effect, where listing agent for owner occupied homes will tell their client to not trust your offer, because it comes with an unknown bank in CA. Unfortunately, stereotypes exist for a reason, and too many times big money from CA/NY/etc comes into our market, makes a big offer, and then tries to get the price down with the inspection. Or, if they're using an unknown Private Equity firm, the financing changes and they pull the plug on the entire deal. 

If you are working with a Realtor/PM, they will have lenders they recommend and have worked with before to help you out. Regarding cash/hard money, yes that's doable, but then you're paying closing costs twice, so make sure the numbers work of course. But, cash is always king. Don't expect a perfect BRRRR in this lending market, but if you can likely get some money back out, especially if you're buying the $60k house, putting $15k into it, and the ARV is now $75-80k. Best of luck to you!

In Toledo, OH, you can regularly find C class neighborhoods with SFH that hit 1.2-1.4% with a little bit of rehab and 1% turnkey, and MF over 1%. Prices are very affordable, but I never expect appreciation to outpace inflation, so it truly is a Cash Flow town.

I simply have a website and use Zillow. People reach out and ask if they could just stay for a semester instead of the whole year. 

Quote from @Devon Moore:

Hi Everyone!

Has anyone done mid-term rentals (MTR) in areas with colleges and universities as the primary demand generator. If so, can you provide some details on your experience and who was most interested in renting from you?

I am thinking there would be many students and scholars who may be in an area for a few months or a semester that could benefit from a mid-term rental.

Thanks!

Devon

I would say if you wanted to have one or two houses in your portfolio available for MTR in a Student Housing Portfolio, that could possibly work. But, I wouldn't have that be your only focus in a College market. I get 1 or 2 requests every year for housing for only a semester (fall or spring), but not enough to seriously consider it. 

Quote from @Jack Smith:

@Christopher Sandys

Hi Christopher, I am only a casual observer in this, hearing bits and pieces through my colleagues in that area I know through OREIA.  You sound pretty well in tune with this (fantastic!) and all of the rest of us in the state have been watching it closely, fearful of this kind of legislation spreading (has already into Cleveland, maybe also other cities in the southern part of the state).  

Are you connected with the Toledo Property Investors Network?  https://www.toledopin.com/ I'm not sure if Toledo REIA is participating in the lawsuits.

If any of the readers of this thread that are investing in Toledo are not actively involved in one of the area REIAs I would greatly encourage them to rethink that approach!  

Toledo PIN was the spearhead for the first lawsuit against the city that was overall successful. Then the city changed a couple of things and slapped it right back on the books. The current lawsuit is being lead by a couple of other big players in the Toledo RE market, but not PIN. Same attorney though. 

@Nathan McBride each tenant has their own portal and account, but they're all moved in under one unit. You tell them that they need to have a zero balance by whenever, and it's up to them to figure it out. If it's not fully paid, then late charges start to apply to the entire unit. As long as you educate people when they move in that this is how it works, they don't usually have a problem with it. On a side note, I have all my students and normal renters on a single lease, I don't rent out per room. You talk about headaches...

If you're in Baton Rouge, I'm assuming you're renting to a lot of LSU Students. I do Student Housing, and there's no way I would ever require one payment. This isn't 1998. My Brokerage uses AppFolio for our Property Management, and you can accept multiple payments with no problem, so I don't see the issue there. If it's a personal choice, that's fine, but what I tell my renters is I don't care how you get there, but the rent needs to be paid in full. It's up to them, legal adults, to figure it out amongst themselves. You want them to be accountable to each other, not you. You're not their Dad. This goes with any unit that has roommates, college kids or adults. Hope this helps. 

Quote from @Corey Duran:

I own 14 doors in Toledo and haven't had anything come to my mailbox yet about needing to have my properties inspected yet.. I have been hearing for years that they are trying to pass something but haven't heard anything in over a year.

Should I be concerned? Following to see what you find in case I need to start prepping.

 Yes, you should be concerned, depending on where your properties are. They're not going to send anything to your mailbox, they want your fines I'm sure: 

Rental Registry and Lead Safe

The city has an active lawsuit against it regarding this ordinance, and the attorney has filed an injunction it appears since the city announced on March 1st that the first 2 census tracts whos deadlines have passed are now due on March 31st. 

Quote from @Raj Parasuraman:

Hi All, just wondering if the ordinance has been permitted to proceed? I knew that it was placed on hold last year while the legal case was in the courts. 

I have just received a letter from City of Toledo that two of my properties need to be certified by the end of this month.

Yes, if your property was in the first two census tracts to be inspected, the city announced that you need to get it done by the end of the Month. Here is the motion that Andrew Mayle filed on 3/2 that asks for an injunction for this new deadline: http://lcapps.co.lucas.oh.us/P... If you really want to go down the rabbit hole on the Lead Ordinance, you can see everything that has happened since it was filed here: http://lcapps.co.lucas.oh.us/P...I don't know if the injunction happens, but nevermind the fact that we're supposed to get 4" of snow on Friday, but be sure to paint those windows and soffits! 🙄