All Forum Posts by: Drew McCrory

If you are looking in Toledo, a couple good zip codes to start are 43612, and 43613. These areas are in Washington local school district, which is one of the better public school districts in Toledo. There are other good areas too but homes in this area are less expensive and cash flow well. I would stay away from investing in the east side of Toledo. Housing prices are very low but vacancy is high. I know a few investors who do well in these neighborhoods, however, they are experienced with managing in lower income neighborhoods. I grew up and currently live in Toledo and also am a licensed realtor. If you have any more specific questions, I'd be happy to help.

Hello all,

I have been looking for lenders who provide VA rehab Loans but cannot seem to find any who will service such loan. I know it is possible because I have read and heard of people who have done them. So I figured there's no better place to ask then the great investors on BP. I know the 403k FHA loan is similar however I'm trying to avoid PMI and the 3% down. If anyone has used or knows of a lender that does these types of loans please let me know, or if it's the unicorn of loans and you think lenders won't do these anymore also let me know :)

Hello, I am a new investor looking in my surrounding areas for a 4 unit to buy and rent out. I'm hoping some of you more experienced investors can enlighten me on if I should check out other areas or if its possible for markets like this to cashflow.  Rental rates for the 4 units in my area average about $475 per unit. That's 22,800/yr of Op income. Avg price is about $130,000. And tax is about $4500/yr. I know theres many more expenses between vacancy,insurance,maintenance,cap ex, etc.. However, I would like your opinion on if these types of numbers with the lower rental rates can still cashflow. Any advice/opinions are greatly appreciated. Thank you!

@Will Fraser Hey Will, Thanks for the response. Very good points, since the risk amount is low due to va loan why not go for a 4 unit. Will also forsure start using 10% mgmt fees in my calculations. 

@Joshua Howaniec I have been reading a ton of REI books and podcasts over the last year, will definetely check that one out next. Thanks.

Hello everyone,

I am a new investor trying to figure out my gameplan before i jump into the world of real estate investing. Hopefully some of you with more experience or insight can help me form my decision. In 6 months, I will be able to get a VA loan which means I won't have to pay any money down. I plan on house hacking by living in 1 unit and renting the rest until I save up enough to do it all again. I've narrowed my search down to 2 markets, however I cant decide wether to go for 4 units or just a duplex to start.

Starting with a 4-unit sounds more appealing to me because it seems there will be a better chance at higher cashflow, however I know the maintenance, Cap ex, vacany, etc.. will be more unpredictable and im nervous managing all that on my first property might be more than I can handle. 

Starting with a duplex or 3 unit is enticing because the numbers get more predictable as you have less units, as well as management gets easier. I don't mind working hard managing, and definetly plan on doing this long term, just cant decide wether to start small or just go for a 4 unit. especially with having the VA loan- no money down.

Hopefully some of you can shed some light on this topic for me through your own experiences/knowledge. Thank you in advance!

P.S I do plan on managing on my own, however, I will be inputting a 7% management fee in my analysis when prospecting just in case. 

-Drew

@Megan Hirlehey I really like the idea of Cozy. Seems like it will make the landlord job much simpler and more organized without adding to my expenses. I will definitely give it a try, thanks for the info!  

Hello everybody, I am looking to start investing in the next year or so and am trying to have my plan in place before I start. I was thinking about how I will collect my tenants rent if I manage my own units. I don't own any office space or anything like that and I doubt giving my tenants my personal address would be a good idea. How do you guys collect your monthly rents and what's your opinion on the best way to do so? Online payments, money orders/checks to a P.O box, cash?? Looking forward to see your opinions!

@Daniel Kramer lol very true, but I'd say Toledo is much more than a college town. Many different types of areas in Toledo Vs a place like BG that is specifically known as a college town with mostly students.

@Chad Boyers Thanks for the insight Chad. Actually BG was the College town that I was referring to. Since you seem familiar with the area maybe you can answer these questions for me.

1. Does renting out per room limit your potential renters due to the fact that many people problably won't want to share a house with people they do not know and or trust? Leading to more vacancy

2. Would you recommend staying with one strategy as I grow my portfolio or try out both and see which one works better for me and continue expanding that way? As of now I am leaning toward starting with renting to students in BG for my first 4 unit investment and for my second aim for another multi family in toledo where I can target longer term tennants. What do you think?

@Brian Sullivan Has the inspection period already passed? If you find something during inspection that was not disclosed on the home disclosure statement, you can backout of the deal without losing your escrow.