All Forum Posts by: Account Closed

Hey Carlos, that's always a great first book to read! A few others I like:

Multifamily Millionaire by Brandon Turner

BRRRR by David Greene

The Millionaire Real Estate Investor by Gary Keller

Quote from @Rick Albert:

Post like these will get you a lot of Realtors saying their market is the best. Take it with a grain of salt.

When I decided to move money assets out of California, I looked at the following:

1. Landlord Friendly States

2. Price point I felt comfortable in

3. Went to HowMoneyWalks.org and pick counties within the state where people were moving to.

4. Looked at cities with a population of at least 100,000. I wanted to make sure there was a big enough pool of tenants.

Hope this helps!

This is a good criteria. GENERALLY speaking, a lot of midwest states check these boxes. Ohio satisfies this a lot, Columbus less affordable and more appreciation, Cleveland still very affordable, with strong cashflow and minimal population/job growth. 

Quote from @Cole Puterbaugh:

Quote from @Andrew Weiner:

Quote from @Cole Puterbaugh:

Under contract for a 3-unit mfr in Cleveland. My first purchase. 

Purchase price is 177K.

Appraisal is 138K.

I cannot make up the difference with cash since I'm already at the top end of my purchasing ability.

Is ordering another appraisal worth it? Comps in the area seem to support the appraised value...

I'm trying to understand why you would purchase a property so far over appraisal if there aren't supporting comps?  It sounds like you are overpaying unless I'm missing something.  Also I would be suspect that they have cash offers.  If the offers were close most sellers would take a slightly lower cash offer over having to deal with a mortgage.  

Sometimes a bad appraisal ruins a decent deal, sometimes it stops you from making a bad deal.  

 The reason is cashflow. The triplex cashflows at +$700/mo, and that's a very conservative number.

But to more closely answer your question, I'm not purchasing a property so far over the appraised value. I want to ensure that 1) the appraised value is accurate, and 2) I want to determine if there is a workaround since this is my first go-round.

Cleveland is a great market for cashflow! This sounds like a good investment...  but you make money when you buy, not when you sell. Good cashflow doesn't necessarily justify overpaying $40k, in my opinion. 

Hey Zac, I'd be happy to discuss this with you further, but from a glance- very strong rents (granted i don't know the bed/bath breakdown, square footage, etc. of the units) and the supply is very limited for multifamilies on the MLS here in Columbus, and the good deals come and go like the wind. A lot of investors I come across look at the 1% rental income rule, so $3900 a month means you could get around $390,000 (again this could vary a LOT based on conditions and neighborhood).

I think this topic should have vastly different answers if you are an investor or an occupant... Even for occupants, that money could go to so many things- tuition ain't cheap. Another big factor is your retirement plans. Beyond just the finances, is this a home that will stay in the family? Or are you going to retire and hit the road?

As @James Wise pointed out, "remotely managing" will not work well 9 times out of 10, unless you mean hiring a PM  on the ground. Looks like my Columbus guys beat me to the punch- as far as the midwest goes for an affordable, high cashflow market, I consistently hear about Dayton, Cleveland, Detroit, and I still come across cash flowing deals here in Columbus. 

Quote from @Chris Rodriguez:

@Basit Siddiqi Thank you for your feedback. @Account Closed said "...no one wins Monopoly by selling." That has stuck with me since I read it.

 I still remember the conversation I had when I was told that quote! Makes you think doesn't it...

It well serve you well that you have reasonable expectations. Many come on here being fed the overnight millionaire stories by "gurus." Real estate is about snowballing your wealth- 1 property year 1, 2 year 2, 4 year 3, 8 year 4.... so on so forth. The down payments will fund themselves in some instances if you get crafty with BRRRR, HELOC, etc. Continue to generate active income and work to put that to passive income.

Like any rental, do your due diligence and screen your tenants. Arguably the biggest pro of Section 8 is that Uncle Sam does not miss payments, while Average Joe may miss payments, even with a 700+ credit score. The government's money will hit your account on the 1st rain or shine. 

States in the midwest tend to be affordable and landlord friendly. Cities like Cleveland, Dayton, and Detroit (not familiar with how landlord friendly MI is) are great areas to go for cashflow. A lot of metrics support the notion that Columbus will continue to appreciate (job growth, pop growth, heavy investment from large employers). There is a construction site and a crane here every other block.