All Forum Posts by: Detra Harris

Hi @David Uzhca.  Although we haven't had to retain an attorney in Dayton only because of the moratorium's in place, this website may be of value to you https://www.justia.com/lawyers...

Be sure to serve the tenants the required covid-19 declarations before moving forward.  We have two tenants in Dayton that couldn't pay and we received State funding less than 30 days for months in arrears.  Here's another website that may be helpful https://mvcovid19eviction.com/...  Montgomery County was awarded $5M for renters assistance.  

Good Luck!

Detra

@ Aaron Duplex Thanks for asking!  Most responses are positive and I'll admit, there's nothing else I'd rather do than real estate investing.  We had a few pitfalls with tenants like @ Steve K., however, our markets remain strong in the multifamily sector, so no complaints.  We are refinancing as well to take advantage of low rates.  The inventory is very low, therefore, it's challenging finding and landing great deals but I'm still optimistic and looking every day. I'm happy!

Detra 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Cincinnati.

Purchase price: $165,000
Cash invested: $40,000

Great solid brick 4 family with secured entry in a prime rental location. 4 one-bedroom apartments, all units occupied with mature tenants. Updated heat pumps for all apts (2019), Two window unit A/C for each apartment. Four built-in rear garages with new garage doors (2019). Super excited to close this deal on 12/9 of this year.

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

Good bones, long term - pay on time - tenants. Seasoned adults community.

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

Found on Realtor.com

How did you finance this deal?

30 yr term loan.

Lessons learned? Challenges?

We disclosed to the lender a circuit panel needed replacing which the seller-provided credit, however, the lender requested some sort of inspection release form from an electrician which cost additional funds to close the deal. We learned later, we didn't have to disclose this information to the lender which would have avoided the extra step in the loan process.

Hi @Johnson Michael,

All great points, which is why I love bigger pockets. Great recommendations and exceptional experience. Be sure to read those great articles, perform extensive due diligence on the sponsor and their track record. As stated, check with your attorney regarding using your LLC -- I use my LLC for liability protection and business activity under my LLC for tax purposes. Relationships and integrity are everything in this business, therefore, get to know your sponsor before investing with them. Talk with a few investors that have done business with them as well. Good luck!

Detra

Hi @Alex Huang, 

Michael and Hayden made some great points. There are a lot of factors to consider to determine if this is a good investment. You're in a good place because the units are vacant allowing you to collect market-rate rents. I agree with Micheal in terms of calculating your cap-ex, reserves, and property expenses (excluding mortgage and insurance) to measure your ROI against your goals. It appears to be a good investment if your NOI is healthy and property values increase significantly over the next few years, regardless of rent control requirements. Besides, Oakland is changing rapidly due to gentrification in many areas, property values are increasing at an enormous rate. I would hold the property for a few years before selling to max on appreciation and equity. Be careful when asking tenants to move out for owner occupancy. Oakland has strict laws for termination of a tenancy for the owner's benefit and is a very tenant pro City. My two cents . . . Good luck!

@Alex Huangundefined

Cozy is really popular I see.  We use Cozy, Zelle and Paypal. Appfolio is great for properties over 50 units.  Very user friendly. Tenants can also mail in rent payments which most of our seasoned tenants prefer over new technology.  Having several options is best and will help rack in your rents timely and tracking is super easy.

Thanks for your input @Dave Spooner.  Great points.  It can be very difficult for tenants to hand over a significant amount of upfront cash, especially considering moving costs as well.  I guess we'll have to see what happens with this new law.  I would prefer a lower security deposit over the insurance option although it's not my choice. The tenant has the right to select whatever option they prefer. I agree tenants will become aware of this new law sooner than later.  My tenants are always sending me new laws they find on the internet, haha.  I have to stay on top, otherwise, it could be costly down the road.  For instance, in California, we have to pay minimum wage to onsite managers (16+ units), even if we provide a unit at no cost. Onsite managers are suing owners for unpaid wages because many owners do not know about this law.  

Thanks for the feedback.  Here's a link to learn more about this new law in Cincinnati.  
https://www.cincinnati.com/story/news/2020/04/14/cincinnati-rental-law-makes-paying-security-deposits-easier/2988887001/
I see a problem coming if we have to file claims with insurance companies to collect a loss due to damages. This could take months to collect.

Hello, I've been getting calls regularly from start-up companies offering what they call "guaranteed security deposit fee".  I'm old school and just getting the hang of online rent payment software (awesome juice -btw), therefore, I didn't respond much to these solicitations.  However, the majority of small claim cases related to tenant/landlord issues involve security deposit matters.  This is something worth looking into.  I own several properties in Ohio, therefore, this topic is of interest to me.  As a matter of fact, Alabama, California, Connecticut, Maryland, New Hampshire, North Carolina, Pennsylvania, and Virginia are jumping on these new initiatives.  I guess we investors should really take a look at this a bit closer.  Tenants will have 3 options to by-pass security deposits:  1) Apartment security deposit insurance, which may range from $3 to $20 a month paid during the duration of the rental, depending on the monthly rent. 2) Installment plans, which would be paid over no fewer than six months. 3) Payment of a smaller security deposit, which must be less than 50% of the first month’s rent.  Are you in favor of this new law?  or could it be problematic for property owners?

Hello.  Sorry for the confusion.  I was just updating my profile and didn't realize it was posted.  No, I'm not selling this property.  It's a buy and hold.  However, I am seeking to buy additional properties in the Dayton area.  My criteria are 5 to 10 units, value add, at least 85% occupied if you have leads.