All Forum Posts by: John Gerwatosky

@Clarence Watkins This is what I use to classify the neighborhoods, which I found of BP Forums (As well as qualified property managers to let me know). 

A - this is where you and I want to live (lowest crime, best schools); appreciation is very good (generally highest) and cashflow is either negative or very little; ideal for fix n flips if you find that "sore thumb"; best for new builds

B - low crime, good schools; with some appreciation and positive cashflow; lots of homes are owned by first time home buyers in addition to renters with stable jobs/ good incomes; good for fix n flips as well

C - some crime, OK schools; little appreciation and very good cashflow; renters with OK incomes; ideal for buy-and-hold specially if area is changing or becoming a B area; you can get very good ROI even for turnkey properties if you're in this area

D - high crime, bad schools; no appreciation and very high cashflow; mostly subsidized housing; to succeed with this, you got to be a "hands on" landlord and literally live close by; lots of boarded up houses (one boarded up per block)

F - this is where the most violent crimes are committed; negative appreciation and the highest cashflow; every other house is boarded up; you either get shot or get stabbed so be careful so wear a bullet proof vest:) PMs don't even want to be in these areas

@Stone Jin Yes I do own 4 properties in Ohio at the moment. I was considering grouping them as a portfolio but was told those loans are even more tough to come by. 

The down payment is not an issue. I have been paying cash for my previous properties but want to increase my total unit number quicker by taking out loans. 

@Jaysen Medhurst Yeah I am a bit surprised about being told they will not work with out of state investors as well. I firmly believe that it is because the loan amount is low. I will check out those other lenders. Thank you!

@Michael P. This is a C class area and I received a good deal on it. If you have invested in Ohio then you would know that the prices are very cheap. 

@Edward Liu I will get in contact with those banks. Thank you for the input! How large of properties are you securing with those banks? 

Hi,

I have an off market property in Toledo, OH that I have been trying to acquire financing for. It is a 6 unit property for under $100k. It is a great deal and the owner is willing to wait for me till I line up financing. However I have been running into the same two issues, which are:

1. The property value is under $100k (Or it is under $30k a unit)

2. I do not live in Ohio (I live in Southern California) 

Have you experienced these issues as well? My credit score and income are more than adequate to be approved for the loan (I can put 25% down). I am at the point where I have thought of different options to secure this unit, which includes purchasing and getting loans 4 other SFR or Duplexes from the same owner and inflating the price by about $20k a unit (4 units would be $80k) and then he can deed the 6 unit into my name while I finance the other 4 properties. Has anyone had experience doing this? If so, how did it go? Did it work?

Please advise if anyone has a different idea to help secure the 6 unit.

Thank you,

John

@Nathan Gesner That is fantastic advise! I appreciate the response, I will get started on doing that. 

@Craig Power Appreciate the input! Yes it is quite humorous when one side enforces the contract and it bites them in the butt lol

I will continue to send updates about this situation. I am hoping to get out of this contract without having to pay a dime considering the quality of service throughout the last few months working with the PM company has been awful. 

Hi @Patti Robertson, 

They were not delayed from the government shutdown. However I was under the impression that they were because I did not receive my rent from SEC 8 for that month. It was because the unit was vacant and my PM company did not notify me (I had to notify them)... 

UPDATES:

The Property Management company emailed me on Friday (Now they finally have decent communication when I am canceling their services lol). They emailed me saying: "I checked the management agreement and you have 13 months on the contract. Your "Buy Out" based on the management fee for that period is $1733.00. Refer to paragraph 10 in your management agreement."

The owner was being absolutely rude and unreasonable. I simply put it that this is a service based business and I was NOT happy whatsoever and that I shouldn't be penalized with a "Buy Out" because first of all I own these properties and secondly that I was not happy with their services. He basically said that because I signed the contract I have 0 options other than to do the buy out. So I told him that if he is going to be sticking to the contract then so will I. I said that I never signed a contract for my duplex and I will not be paying for any buy outs for that property (Which accounted for $1300 of the buy out). He immediately knew that I never signed a contract for that property and he was upset and said that I was basically "Shady". What was actually shady is that he was trying to get me to pay for my duplex when he knew right away that I did not sign a contract.

All in all, I "owe" them $433 to buy myself out of the contract. I did ask for the signed contract since I never received a contract from them. However I have not received it yet.

How is this okay for Property Management companies to do? Has anyone else experienced this in the past?

Should I pay the $433 or fight it more? If I can fight it more then what are my options. Appreciate everyones help! 

Thank you for the info @Marcia Maynard and @Nathan Gesner I am waiting to hear back from the property management company. I am suppose to hear from them today, I will advise what they say.