All Forum Posts by: John Mullen

I’m a newbie in CA and looking to jump into the Real Estate Investing game. I’m looking into investing into some Midwest States (Indiana, Michigan, Ohio, Illionois and open to others), but does anyone deal with the Pittsburgh market at all? Is it a good one to invest in?

Hi Aj, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

@Jimmy Lieu's property descriptions and due diligence are thorough; can confirm bc I'm on his mailing list hahaha.

0 Votes

Long Beach, California

Thanks everyone. To celebrate, I'm thinking of having a barbecue at the house next weekend. DM me if you want details! Open invite, I'd love to meet some new people.

0 Votes

Quote from @Richard Rohrbough:

Quote from @Rick Albert:

How much equity do you have in the property?

What are your long term goals?

Can you refinance?

I haven't heard of a lender willing to redo the payments unless it is a full on refinance.

As mentioned before, you are actually in the hole more than the $150 once you factor in repairs, cap ex, and vacancy.

Is there a way to increase revenue for the property? For example coin laundry, passing on gardener fees to the tenants, etc.?

If you sell, what would you buy?

If you convert this to a STR or MTR, does that change anything?

I know this doesn't give you a straight answer, but I think there are more questions that need to be addressed before making a move. On the surface unless there is a long term play of adding value (such as adding another unit), selling may be the best option. You are not in the business of losing money.

Good questions, Rick.

This was supposed to be a cash-flow property, so selling might be best. However, I appreciate other people's perspective in taking a longer-term look at this and considering broader factors than simply cash-flow.

It's a 2/1, so I could add on (i.e., invest more) and make it a 3/2. Or I could take that same money and pay down the mortgage and have the payment recast or I could sell and invest in something that cash-flows better. I guess it's an opportunity cost question.

STR isn't possible due to current city regulations. There's already a STR next door, so my property can't be one as well. Like a STR, a MTR would take an investment to furnish my house. Just don't know enough about that space to know if the cash-flow would be improved.

Hey there @Richard Rohrbough. Have you researched comparable MTR rates for nearby similar properties (eg, scrolled FurnishedFinder)? If you have time and ability to furnish the unit yourself (keeping costs down by FB marketplace thrifting), and if the house is near a medical center or hospital, your 2/1 could be an ideal travel nurse MTR. Not always applicable but could save your cashflow if it works out. Good luck!

2 Votes

Quote from @Dennis Muno:

Well I will say no particular lender will have a particular rate. Interest rates( and the type of finance you get) are based on risk-i.e your FICO, debt to income, number of late payments in 12-24 months etc. This changed by law by congress after the previous financial crash in the 2007,2008 time period.

That being said, the best way to find the best HELOC rates would be to go shop with multiple banks and let them present you with an offer.

Or better yet, call a mortgage broker and let them shop multiple banks/lenders and present you with the best HELOC options out of the many they can contact. Mortgage brokers are usually partnered up with 50+ banks/lenders, and are able to go around, shop with multiple lenders and present you with HELOC options.

I would recommend you start there.

Can confirm, good things come to those who shop around and compare quotes. Google Maps and phone calls are your best friends.

1 Vote

Columbus, Ohio

Quote from @Amir Khan:

Quote from @John Mullen:

Investment Info:

Single-family residence buy & hold investment in Columbus.

Purchase price: $155,000
Cash invested: $80,000

Contributors:
Mike Pauze

Reappraised May 2023 for $285k and refi'd for 80% cash-out mortgage to recover majority of invested capital. Will be STR/MTR starting July 2023.

How did you add value to the deal?

Lots of sweat equity.

What was the outcome?

Got almost all the money back after the refi

Lessons learned? Challenges?

Everything takes longer than expected, especially self-performed renovations.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Teri Gilmore (realtor)

Adam Messmer (mortgage broker)

Jimmy Lieu (connected me with Dawn)

Dawn Mahan (Ameris Bank)

Congratulations! Good work, what are your plans now?

Do it again haha! Thanks Amir!

0 Votes

Investment Info:

Single-family residence buy & hold investment in Columbus.

Purchase price: $155,000
Cash invested: $80,000

Contributors:
Mike Pauze

Reappraised May 2023 for $285k and refi'd for 80% cash-out mortgage to recover majority of invested capital. Will be STR/MTR starting July 2023.

How did you add value to the deal?

Lots of sweat equity.

What was the outcome?

Got almost all the money back after the refi

Lessons learned? Challenges?

Everything takes longer than expected, especially self-performed renovations.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Teri Gilmore (realtor)

Adam Messmer (mortgage broker)

Jimmy Lieu (connected me with Dawn)

Dawn Mahan (Ameris Bank)

2 Votes

Gaining familiarity with analyzing properties quantitatively will be your single most important differentiator from the horde of new investors, I would argue. Then you can pick your favorite investing locale with real numbers backing your decision.

Here’s an investor on IG who really stresses that well:

https://instagram.com/investwi...

BTW no affiliation with me haha.

P.S. Columbus is booming.

2 Votes

Los Angeles County, California

Quote from @Joshua Janus:

Quote from @Lucas Anderson:

I'm coming from out of state to visit Columbus for a full day this Thursday June 1st to view different neighborhoods, get a feel for the city, and ideally, take a look at some houses. I'm looking for semi-distressed properties in "up-and-coming" neighborhoods for a classic BRRRR. I've been trying to get ahold of a realtor I chose a few weeks ago to advise me on areas to visit and help set up showings but have come up short with hearing from him, which of course is very frustrating but alas, I come to the Columbus BP community for guidance.

Are there any specific B to C+ neighborhoods you would recommend looking at? I've got $100k cash and lending preapproval - ideally looking in the $115k-$175k range with the idea of adding some renovation value into the home.

Also, if any knowledgable Columbus investors are available this Thursday June 1st for a meetup to shed some knowledge, lunch is on me!

North Linden, South of Main, Vassor Village, Woodland Park, MT Vernon, Milo-Grogan, Franklinton, Merrion Village, Hungarian Village, Southern Orchards, Driving Park, Olde Towne East, Franklin Park, King Lincoln, Old Oaks, Livingston Park are all but not limited to some areas in Columbus, Ohio I think will gentrify quickly and make for great long term buy and holds.

Great list. Check out South Side (the area south of Southern Orchards and east of Parsons). Just refi’d my first BRRRR there.

1 Vote

Columbus, Ohio

Hey @Jimmy Lieu, nice going there. In my limited experience, hard money as a cash equivalent wasn't an issue. That being said, who wouldn't rather have access to to "real" cash haha.

As a side thought, it seems that my personal network of potential investors (at the friends and family level) is holding its applause until I finish my first BRRRR (that I closed with hard money, thanks Adam Messmer). The sentiment seems to be "do one and prove you're for real, then I'll invest in your next deal." Much like job applications, some experience is usually required even if the job says entry level.

2 Votes

Columbus, Ohio

Thanks @Richard Shearrow that’s helpful. I’m not an agent, just helping my friends out by looking for land options (and also considering being part of the group that moves). I’d be happy to talk more; I’ll DM you.

0 Votes

Columbus, Ohio

All Forum Posts by: John Mullen

John Mullen has started 8 posts and replied 64 times.

Post: Just getting started and ready to jump in

Post: Update on my first BRRRR!

Post: Monthly mortgage is greater than rent - What to do?

Post: Where to get the best rates on a Heloc

Post: Update on my first BRRRR!

Post: Update on my first BRRRR!

Post: Starting out - how are you figuring out which market to invest in

Post: Visiting Columbus in 2 days, which B to C+ neighborhoods should I see?

Post: How Much Do Cash Offers Matter? Just Closed A Cash Flowing 4/2 BRRRR For A Client!

Post: Land search outside 270