All Forum Posts by: Jake Walroth

just thought I’d respond, Wells Fargo has a form I can sign, Chase says it doesn’t matter as long as mortgage payments are made, and Amerihome has a form to sign as well. 

Jake 

I'm not going to poo poo something I've never done.... but my bet is you'd get more out of going to the @Joe Fairless meet up the last tuesday of every month in Cincy... or your own local meetup. 

I've done a Robert Kyosaki and Dale Carnegie course/meetup....great authors, entrepreneurs, they're seminars are all garbage. 

Just added a 5th bedroom, will rent for $2600/mo beginning in August 2019. It’s currently rented at $2150/mo through July 2019. Tenant’s pay all utilities. New roof- 2017. All hardwood floors. Central AC. Off street parking. Walking distance to Over-the-Rhine(OTR) and UC campus. 

All of your questions are moot until you know where in Cincinnati you are investing. What's the point of knowing the average rent of an entire city unless you are owning/plan to own real estate in the entire city? And your question on returns.... you will find people that say 10%, 7%, 35%, 27%... not sure how an answer to that question helps you- some people are better at investing than others, some people buy cash, some leverage--it will be all over the board.

You're not investing in an MSA... you're investing in a neighborhood, in a township, you're investing in a school district, you're investing in locales.... and that's incredibly difficult to do if you've never been here. 

Now I think the answers as to why someone in NJ should invest in Cincinnati would go something like this: 

-people live there

-big companies live there

-urban neighborhoods are gentrifying

-affordable living 

-diversity of neighborhoods--some good for flips, some good for consistent appreciation, and there are still plenty of C-D areas that show good returns on paper that people from NY and CA love to gobble up

-major airport

-major research university

-we have Skyline Chili

-Pete Rose is from here

-Our Roebling Bridge is your Brooklyn Bridge's father

-Goetta

I will suggest this.... get in front of multiple lenders, ask for any grants that may be available, or other programs that might offer down payment assistance... usually for certain neighborhoods the city/county is trying to spur investment within. 

My first investment property was a 2 family at 175k... i was going to put the min 3.5% down... but my lender found a grant through the cincinnati port authority.... they had grants for buying in certain neighborhoods... this particular grant was only for first time buyers, in certain neighborhoods, and you had to have 720+ credit and not make more than 100k with your W-2... but they paid my entire downpayment... and all i needed was to bring 3k in closing costs..... this allowed me to get in for so low.... I was able to buy a pure investment property just 5 months later.... but the first deal was what really allowed me to expand and begin my journey as a real estate investor. 

Cheers and best of luck.... know that this househack could be the thing that jump starts your journey to financial freedom... @Juan Alvarez

Jake 

College rentals are a flipping racket.... in a good way lol... I closed in my 6th college rental and my situation was this: 

Deals are competitive near college campus’ because of the nutty rents you can get for providing good housing to students. I got this from direct marketing.... there’s 0 on the market.... I know it’ll cash flow near 1.8k and be a great property... but I’m going to have to eat the mortgage until June or August...when I can get a new group in... it’s a 7 bedroom house... if you have a group of seven people, you ain’t looking for housing until June or July... if you find a multi unit of 1-1, possibly 2-1, it may be easier to find students mid year.... it all depends on your campus... mine is a large school 45k+ with a large commuter population...so it’s very feasible for a fresh or jr to be living at home In March and decide I want to live near campus/or I now have enough $ saved up to move near campus. But, like where I went to college, Miami University, a rural college town with a population of 5k in summer and 30k during school year, its unlikely you’ll be able to find mid year tenants as easily...... 

But if the deal is going to be killer and it’s a competitive area, it’s going to be well worth it in 4/8mo..just consider it an expense... if you can’t justify eating the mortgage for 6-12months is it really that good of deal anyway ?

Cheers and best of luck 

@Mark Nolan i know they’re not going to be able to stay/afford... I just want to do it fairly...

I also know I’m going to be holding this one vacant until June, Thats one of the downsides... but once I get it lined up with the school year I’ll be good... don’t want to have to evict... and kick a family so to speak. 

My only other thought was to maybe convert to duplex... pretty easy in this home... maybe Airbnb a unit.... I'd like to keep it SFH because it maximized bedrooms and means tenants can cover utilities.

Jake 

So I have a few properties that I’m not sure how to handle because I’m not sure how an appraiser is going to value them. 

My properties are all college rentals. 

I have almost identical homes... old brick row homes, their backyards bump up to one another. One is a SFH, one is a duplex...the SFH is larger, will netmore $/mo because I won't pay utilities... very similar in finishes, the duplex a little more updated.... but it appraised for 243 and the SFH only 164k... are Duplexes just valued higher in high rental neighborhoods? Now, the SFH may have appraised lower since it only rents for $1200 today.... so if they used the income approach, that could be why.

Ultimately, I'd like to BRRR the SFH like I did the Duplex... but I'm wondering if I should convert the SFH(pretty easy to do with this house) to a duplex if duplexes are just valued greater in these types of neighborhoods.

All opinions, thoughts, and advice welcome!

Jake 

So, I invest in near our local college.... however, I've never inherited non-student tenants before. This house makes a great college rental..: nice brick SFH with 7 bed, 3 bath, brick row home... love the house... we closed today... i own 3 other very similar buildings and know it should rent out for around 3-3.5k/mo.... here's the kicker, there's currently a family living in it paying just $1200/mo... it's a lower income family and they're have about 9 family members living there.

I know I won’t get students in there until June.... but I’ll  need to be able to start showing the property around Christmas-/ I usually have my units rented for the following school year before Christmas. 

I’ve never done this before, do I just notify them of a rent increase since they’re month to month? 

I don’t anticipate it being easy for a large family to find another suitable place in just 2 months... any suggestions on how to fairly handle this while still being able to accomplish my goals of having it ready to be viewed in just 4 months? 

The property doesn’t need rehab... other than whatever touch ups/cosmetic work needs to be done when they move ouT. 

Any and all advice much appreciated, 

Jake 

@eric I’ve heard Madisonville has been on the come up for “20 years”.... but I will say, working on boarder of Oakley and HP... I find myself in madisonville more often... mostly for Mazunte lol... but with Medpace, the Summit Hotel, the Ackerman Development coming online.... and the fact it’s surrounded by some posh *** neighborhoods I think it has a good future.. I don’t invest/haven’t looked much at the real estate... but I dig what’s going on over there... think a brewery is going in as well. 

Cheers 

Jake