All Forum Posts by: Jared Threat

So back in 2018, I decided to purchase property out of state since I couldn't afford the property in SoCal. I chose Ohio as a market and started looking for property.

The first deal I found was a 3-unit for $100k. Market Rents were $600-$800/month/unit. Monthly expenses were around $1,000 with everything.

I thought I was purchasing a cash-flowing machine. 

Turns out, the property was in a D-class area. Break-ins, loitering drug addicts, and inherited awful tenants were my everyday headache.

Before I knew it, I had to fire my property manager and move from Los Angeles to Ohio to figure out what to do with this property. I started doing repairs myself to save costs and slowly over 6 months got all the bad tenants out and got 3 solid tenants in all at $800/month.

In exactly 12 months I sold the property for $190k. Even though I lost my hairline, I gained so much knowledge. 

That knowledge took me from 3 units to 51 in less than 2 years.

We are all so worried about making mistakes but the mistakes I made with that 3-unit is what got me to where I am now. A lack of action is WAY worse for your success than mistakes.

Hi @Christian Orellana. Florida if viewed as more landlord friendly than tenant. I am not a PM or lawyer, but it is fairly easy process to deal with tenants. Every investor has a different set of criteria and approach, but Florida has always been a great place to have rentals. I have a buyer selling his 8 homes in Buffalo now to come here and buy homes (but the value of his 8 will only buy a few down here).

Values have been increasing by double digits in most of the state for a decade, rents have increased as well, but just couldn't keep pace with appreciation. So the '1% rule' is really a thing of the past. 

Other benefits would be no state income tax, surging economy, weather, no basements, no furnaces, almost exclusively block built homes. So lots to consider!

Let me know and we can dive a littler deeper if you like. 

Best of luck!

Hey Jared, I think that's a cool idea. My understanding of ADUs is that MOST areas require an owner occupant in order to rent out the ADU. Therefore if you are to move, there MAY be some issues renting the space out. I am not from NY so I am sure someone from the area will be able to give you better advice. Also, Being that you are looing to purchase a lot from the city, it probably has a separate property ID which could help you. Best of luck, I want to hear how this all turns out. Love the creative mindset!