All Forum Posts by: Ben W.

@James E., I know the area and the street well as am invested in Walnut Hills, among other areas. First, I believe this is overpriced - $30K per unit is not where I would want to be; even more after your required Capex. The area is coming around as evidenced by some public monies and some other larger developers. Still scary. Why is owner selling? What can you do that they didn't?

From a review of your analysis, I don't know that you can drive the rents up as you suggest.  Suggest looking at that component to start and see how tight things are.  Then, look at the physical plant.  What exterior issues (how old is roof; what is composition?).  Boiler - when last serviced?  I am guessing that you would need to go to another heat source.  Elect - what is style  (knob and tube?) and when last upgraded? 

Happy investing but managing from afar on this one might be tough.

Perfect!!  Happy to connect with you and offer resources if you need help.  PM me.

@Rickie Mincy, thanks for being resourceful and looking up AND sharing the Police Landlord training.  For those investors who actually want to landlord in some tougher areas (the returns do justify this possibility), I highly recommend it.

You definitely need to know what position the liens are in and other items that could be impactful.  Title searches and/or the proper due diligence are pennies compared to the amount you are thinking of investing here.  Remember the saying Uncle Ebenezer used:  treat it as a business and it will pay like a business; treat it as a hobby and it will pay like a hobby.

Also, this info on foreclosures does come up earlier than just a few weeks before the sale.  If you find this form of investing interesting, take the time to get the info earlier (it is public, but you may have to subscribe to a court paper).  Research the opportunities and reach out to investors and banks.  I have purchased pptys pre foreclosure by simply bringing payments current.  Another twist on that is the lease option.  Another angle is the outright short sale, but that may take more time (and is not one of my favorites because I have to actually pay $ for the house rather than using a no or low money down technique. 

Until you do the research, you really do not know the whole story. 

Happy investing.

@William Huston, I agree with all comments including @Bryan Blankenship who is in the same market. I would add that as you continue to build a portfolio, you need to be even more picky. While there are some efficiencies in scaling, you also want to focus on finding better ROI's than your average portfolio so that you may some day "weed out" the lower ROI. Look for ROI that approaches 20-25%. They are out there. And, as someone said, do not just buy based on ARV but if you do, get a meaningful discount. You are special. Find a seller who realizes that. By that I mean that maybe for a similar transaction, you could find a seller who would carry a 2nd. Remember, it is about Price and Terms - while you want to try to get both, getting just one of these can also be ok.

Happy hunting and great job reaching out to BP.

what is the scope of work? 

Do you ever take your tenants to court?  That is really where the data gets pulled, not from landlords necessarily "reporting" to a third party bureau.  If you are not at least filing for eviction or filing to collect past due rent, then you may be missing something.  

I would also suggest that you look at the systems, processes and tools that you have set for your business.  As an experienced landlord/buy and hold investor, I would also answer your question this way:  in today's used car buying market, there is a thing called Carfax.  It gives a history of the car.  Maybe not every car is tracked, but if the one you are buying is, and you later found out that you didn't pay the $75 to get the report but that this was a Florida water damaged car..... wouldn't you be a little upset with yourself?  Now, maybe the car that was damaged didn't get reported through clear title or something else happened along the way, but follow me?  I do a little coaching and I always ask:  Is this a business or a hobby?  With a hobby, you can be expected to be paid like a hobby; with a business, you should expect to be paid like a business.  So, use the tools that are available.  Build your own systems and stick to them.  In my business, which is heavy in the C, D, E, F and lower types of markets, if there are, we do not always screen for evictions.  BUT, I can tell you that we have developed systems and scripts to ensure that we know what kind of persons we are getting as tenants. 

Best of luck as your build your business.  Good for you being on here and challenging yourself to ask questions. 

@Carley M., Being reasonable and willing to compromise/see the issue in the eyes of the other side is an important aspect to running any business.  As suggested, try to determine if this is a simple Yes or No when asked "will she stay".  There may be other factors than your project in the building - she found a nicer place, less expensive, closer to job/school, ran out of money, etc...  This is a business - treat it like one and it will pay like one.  Treat it like a hobby and it will pay like a hobby.  Stick to your guns.  Tenants need to be "trained" as well.

Here is my only caveat:  the courts in some jurisdictions will not let you get double compensation - you may need to show that you are harmed.  By that I mean, you would have to show that you suffered a loss by her moving out and you may only be able to receive comp for the time period in which the unit is NOT rented.  So, maybe negotiate a settlement fee?  Make sure to communicate everything in writing. 

So in summary, here is what I would do:

1. Advise tenant in writing of receipt of notice but outlining her continued obligations under the lease, Ask her to call you to discuss specifics.

2.  If she calls, do the fact finding/digging.

3. if still a Heck No, then advise her that she still has the ongoing obligation.

4.  if she turns in the keys, advise her in writing of her continued obligations.  If she does not turn in keys and/or does not pay rent (did you receive a deposit on the purchase - if so, do not give any credit to rent yet), send her a late notice and treat her as a continued tenant. 

5.  If you have keys, get the place turned and rented.

6.  At end of the time of determination of your TOTAL loss (include deposit as a payment then), send her a letter and process as if going to small claims.  She is educated and has upside - good for you.

I do not know how large your holdings are, but you have to have a process.  As @Michael Seeker stated, windfalls from collections are a good thing.

Best wishes.

walk away. Not in that area, given what you have mentioned. Don't be fooled by generalizations about ARV's in an area. You are not going to get to the $2-300K range quick enough. There are so many great opportunities out there, even at lower entry prices. If you doing a cash deal, look at single families in such areas as Golf Manor, College Hill, NCH, etc. These areas have much more stability and can generate the sort of returns that you should come to expect. Also, it is difficult to understand your business plan. Are you interested in buy and holds, fix and flips, wholesaling or a combination? Sounds like you have a full time job, so as you start out in the great REI adventure, try to stay focused. I know it is hard but over time, through repetition, you will become an expert at a quick NO or determining how to move forward. Good of you to reach out here.

welcome @Thomas Barrick.  Cincinnati is becoming more and more popular as a solid housing market where you can actually generate a reasonable return using several strategies.  You will find many people post.  read, studynamic, ask questions and try.   best wishes 

Ben