All Forum Posts by: Stan Wu

Researching Ohio and Youngstown is on my radar. Anything that is on the low price point in any city has the highest vacancy rate and tenant headaches.  One should always buy into a better situation or buy their problems away.  For your $50K fully rehabbed, go for a $100K established complex (2 or 3 units).  As this Covid pressists, I found that the some areas are isolated somewhat from a negative economy: the cost of living is low so less swings in the community.  Love the open lands and Mill Park.  Wow.

Just returned from a 6-day investing tour of Ohio and enjoyed the Girard, Warren, Lordstown, Youngstown area.  The Boardman area looks like the more centralized area with the best balance of jobs, larger retail like Home Depot, Lowes, Walmart, Costco.  Canton & Akron had very little prospectives.  I am not local investor but from out of state.  Have fun...I did.  If you are looking to live in the home, any of the areas would be good.  If for investing, rentals are more stablilized around town centers. 

Just spent 6 days in Ohio researching and meeting with property mgrs and agents.  Could be just me but didn't find anything worth while in Akron or Canton that were close to viable investments over  Cinnanati, Columbus, Eastern  Ohio like Girard, Youngstown, Boardman.  Akron Highland Square was nice but quite isolated within 10 square blocks with retail/shopping/groceries that doesn't look like it would sustain majority of the middle class.  It was positive for city living but from a pretty run down property that I could see people through the walls from the curb for $25K at 11AM (fully rented) was located 6 blocks from a nice $300K duplex can't be helpful.  I allocated a day in Arkon & a day in Canton, but running along my listed of properties to view & neighborhoods to see, after 3 hours in each city and seeing weak investments and less desirable areas, I cancelled my hotel reservations in both cities and made my way to Columbus.  Recommend non-experts to check out the more active, cleaner, more life in the other bigger and smaller cities.  Sorry locals, that market is for you since you have more time to dig through the possibilities. Thank you group for your suggestions to see...saw it and confirmed for myself.  

Wrote all the advice down. Thank you locals and investors for your guidence.  Doing the initial drive throughs as I conduct a deal in Warren, Lordstown, Youngstown.  Merci

Found all the advice on area very helpful my dear Investors.  Looking at area and economy of Canton, Akron, Lordstown, Columbus.  This is fun!

I'm running the same with a county I am trying to invest. A 12-plex had P&L, balance, etc, but a 4-plex had an excel spread sheet labeled : plumbing, exterior, lights. I asked for receipt of said 'big job' that would verify a roof was installed on date & address. Would think it's easy to keep receipts of toilets, windows, stoves, hot water tanks. I don't blame them but I do wish the selling agent would coach them prior to going under contract. Relying on the inspection, inspection report, and my interpretation of it to see if work was done properly and recently.

Will use the market estimates for utilities, agent's knowledge of the bills, and ask a property mgmt their review on the guesstimates. In the end I can only guess and a bit gamble on expenses that eat the rents away AND then buy accordingly.

I'm running the same with a county I am trying to invest.  A 12-plex had P&L, balance, etc, but a 4-plex had an excel spread sheet labeled : plumbing, exterior, lights.  I asked for receipt of said 'big job' that would verify a roof was installed on date & address.  Would think it's easy to keep receipts of toilets, windows, stoves, hot water tanks.  I don't blame them but I do wish the selling agent would coach them prior to going under contract.  Relying on the inspection, inspection report, and my interpretation of it to see if work was done properly and recently.

Will use the market estimates for utilities, agent's knowledge of the bills, and ask a property mgmt their review on the guesstimates.  In the end I can only guess and a bit gamble on expenses that eat the rents away  AND then buy accordingly.

Christopher poster referred to a site I use to check tax rates in Ohio: 

https://smartasset.com/taxes/o...

The tax rate in Youngstown, Ohio for a $250K property is 1.55% = $3885 taxes

But when I went to the Mcounty tax collect website :  https://www.mahoningcountyoh.g...

and used their 'estimate property tax calculator', one can input if it's residential or commerical, absentee or resident it produced 2x the taxes.  Although the 3rd party website tax estimators are nice, it's hard to refute official county tax collector information. 

Will Barnard:  The projects you have going are rare and sounds like you have a handle on a multiple projects. You run a professional ship. 
What are the top 3 biggest challenges & threats to your ADU projects. I find City does not want to comply and even with rules on builders side, there no money to fight . 2nd: any grade, flood, fire or density is another issue city will wave the flag on. 3rd: finding builders that have confidence to work in confine yard, things out of the ordinary.

I had a project at a small house on 15k sqft space with pool. Removing the pool may cause ground issues to the house and or neighborhood but it wasn't proven but vendors speculated things could be a problem. . Another project had a detached garage taking up 50x40' and we got permission from neighbor to tear down the fence, we use their driveway to gain access, and we replace the fence with new plants and trees and even offered to put in sprinklers to their system for their side. The contractors didn't like the project was dependent on neighbor . Good contractors we talk to prob have easier projects that are more profitable than ADU I guess

ADUs are one of the smallest real estate investments to make in a high market area. Don’t think you can find $200k 2 bedroom house with yard & parking in any major market. May have to review your basic savings & investing strategies in other forums.