All Forum Posts by: Johnathan Alesso

Welcome to BP!  I am moving to San Diego in May and hope to begin investing in the southwest US.  Have you considered investing in UT, AZ or NV?

Have you considered investing in Tucson or Flagstaff, AZ?  They are a drivable distance from SoCal and quite affordable. 

Thank you all for your responses.  What if you knew that the sale price was about 50% below market value?  Would that impact your decision to order an inspection?  Also, the homes have been inspected by the county housing authority prior to the leasing to the public voucher tenants. 

Hi Steven,

Thanks for the feedback.  I will take all of it into account moving forward. 

What is your experience with the Cleveland market? Do you come across many portfolio deals?

Johnathan

Thanks for your feedback.  The properties were all renovated in 2010 and are currently rented.  I will discuss having an inspector do walk-throughs.  The only issue is that the seller has made it clear that he will not budge on price.  The benefit is that the properties are about 45% below market value.  I had reasoned that this market discount somewhat offset the need for comprehensive inspections. 

Thoughts on my numbers?  Thanks!

Good luck to you! The one piece of reassurance I would give is to not let fear overwhelm you. I did my first rehab 10 years ago and, looking back, it was quick a boondoggle. That said, I survived and learned a tremendous amount. I would overestimate the costs and underestimate the ARV just to be safe. I'd also recommend a solid plan to pay back the hard money loan as soon as you can. If you are buying in Chicago (where BP says you are from) it should be fairly easy to resell quickly. You could always consult with a local realtor to get statistics on "days on market" for the neighborhood.

We are about to purchase a 13-property portfolio of singles and duplexes under one packaged commercial loan with an interest rate of 5% over 15 years.  The rate becomes variable at year 5.  The one loan covers all of the properties, and I am told that I am able to sell off each property as I wish individually. 

The 13 properties are in C neighborhoods in Western Pennsylvania.  The total annual income is $94,000 and total net income $48,000.  The insurance is approximately $4,600 for the entire package; annual taxes are $7,600.  The insurance is ACV, but an enhanced version that covers more perils.

The units are all leased except for one.  Given the number of properties, I chose not to elect home inspections.  For this price level, it seemed reasonable to me as each would cost about $400.  I have an excellent property manager lined up to take care of all issues. 

The ultimate goal is to achieve financial freedom through cash flow income.  I look forward to all of your thoughts and feedback!

Be careful with some of the local management companies.  I've had issues having them track water and other utility bills.  Pittsburgh ultimately places water responsibility on the landlord so be aware of the potential for an unexpected backlog!  We can chat off-line about companies. 

Has anyone looked at Tucson, AZ?  It's within driving distance to SoCal and the home values are dirt cheap.  I imagine there are plenty of cash flow opportunities to be had.  My partner and I hope to move to SD in May and will look at Tucson for investments. 

Thoughts?

Greetings!  My partner and I are hoping to move to Orange County this year.  Obviously, home prices are sky-high, but I do know that there are cheaper areas in the northern part of the country.  Can anyone recommend an area where we may be able to find a reasonable priced duplex?  Perhaps in Santa Ana or Anaheim?

Also, I'd love to connect with a OC realtor!

Johnathan