Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Jonah Slove

Jonah Slove has started 12 posts and replied 49 times.

Post: Investing in Toledo

Jonah Slove
Pro Member
Posted
  • Posts 50
  • Votes 40
Quote from @Andrew Fidler:

@Dave Dumoulin Hey thank you for focusing on Toledo Dave!

Defining the class of the neighborhoods is the tough one to start that grade C out for...I have some clients unused to the mid-west who are used to high-end suburbs who consider our better areas a B- area.

Personally, I classify the C- anything I verify I have easy access to my spare magazine before I enter a vacant property. B grade property walks are attended by my children to run around and tell me which bedrooms they would pick if it was their home.

43605, 43608, 43609 are the popular zipcodes for bottom-budget value purchases...I manage a ton in these areas and my personal portfolio contained over 40 43608 properties at the peak. 

20% of these properties will be crazy money earners, 20% will be astounding money pits, and 60% will fare average.

I have evolved into the nicer 43612/43613 for my personal portfolio and find the properties earn consistently and far smoother than my 43608 houses. ($80k renting for $1200 vs $40k renting for $800 multiplied by the ratio above vs boring consistency of the nicer area) 

Oh and I have zero excitement for apartments. I have been investing in Toledo, OH since 2009 and owned 2-12 unit buildings and find they are way too hyped (read lots of guys from BP want to pay too much for them) and the reality is residents in Toledo are ultimately seeking a house with a yard and a garage so as soon as a resident improves their financial situation they move into a house. Additionally Section 8 owns a ton of apartment complexes so there is aggressive competition when compared to the single family vouchers that are very commonly available to us small-time housing providers.

Love to talk Toledo, again thank you for the interest!


 what about 43607? I found an off market 4 pack of houses that seem to be in great shape. And the owner will finance 

Post: Toledo Blade Article - Real Estate Boom!!!

Jonah Slove
Pro Member
Posted
  • Posts 50
  • Votes 40
Quote from @Andrew Fidler:

https://www.toledoblade.com/opinion/editorials/2023/12/12/ed...

(Text of article posted below)

It's nice to see Toledo made the national scene...Realtor.com Forecast of 2024 Top Housing Markets - Toledo #1

Well, Realtor.com is more bullish on our coming real estate year than I am. I anticipated a strong but stagnant year for growth (Typical Toledo, right? We lag the market's highs and lows, just plodding along with consistent returns.)

I have agree with the author that Toledo real estate is priced very competitively nationally and our rental returns exceed the 1% rule frequently. I spent 2022/2023 purchasing single family homes in my preferred investment corridor within 43612/43613 zipcodes. $80k will net you $1200/mo.

That said I am of the opinion that rent rates (up significantly since Covid) are plateauing, I don't expect to see them climb significantly higher.

Regardless, factor my position of being a cash-in-hand personality who doesn't much care if the hype is telling us to buy-buy-buy or run for the hills. I invest where it makes cents and the news either validates me (yeah!) or doesn't (like the talking heads know the future).

I look forward to a stable year in 2024, with growth according to the article below!

DEC 12, 2023


Good news for Greater Toledo homeowners and all concerned with prosperity here comes from Realtor.com’s forecast for 2024.

Economists for the largest online real estate website predict Toledo will be the hottest home market in the nation next year.

Affordability and stability are behind the Realtor.com projection of 8.3 percent price gain for Toledo homes in 2024. Toledo’s median home list price of $200,000 is less than half the national average while price volatility has been muted compared to the wild fluctuations in much of the country. The real estate website expects Toledo home sales to increase by 14 percent next year, because the lure of low-cost housing has sparked a surge of buyers.

Both buyers looking for a place to live and investors planning to renovate and rent find Toledo attractive, according to the real estate website. The hot-housing markets, according to Realtor.com, include Los Angeles and San Diego where median home prices top a million dollars and Grand Rapids, Mich.; Rochester, N.Y., and Springfield, Mass., where prices are much lower but still well above Toledo.

The significant boost in pay won by United Auto Workers members at Stellantis and General Motors in Toledo and rippling out into the auto-manufacturing supply chain boosts buying power in the local economy and is surely behind the economic projections of real estate sales growth exceeding all but one of the top 10 markets. Even if California will not relent on adjusting emission control standards, and the more than 1,000 supplemental workers at the Stellantis Toledo Jeep plant who are expected to rise to full-time permanent status are laid off, on balance, local incomes are rising.

For the vast majority of individuals, a home is the largest single investment of a lifetime. The financial net worth of residents who own a home is much higher than those who do not. In many locations, including some of the other hot-housing market cities, appreciation has made homes unaffordable to those who don’t own a house they can sell for the funds needed to make a move. Toledo housing is affordable to a much higher percentage of the work force than the average city. This fact will help every employer in the region keep and attract the employees needed to make them successful.

The Realtor.com analysis of Toledo notes that we’ve seen our β€œshare of troubles over the past few decades,” but the real estate market has remained resilient with good options in the city and the suburbs. This assessment is another powerful lure to attract people and investment dollars. Declining local economies invariably hurt home values. Resilient real estate markets are safe for investment, and it’s tremendously important that Toledo keep that label through policies like the proposed lead law that match standards in nearby suburbs and comparable Ohio cities.

Toledo is the only Ohio city in the hot-housing market top 10, and Grand Rapids is the only Michigan location on the list. The attention is invaluable to Toledo, and the analysis is reassuring to local homeowners and potential buyers and a great benefit to local economic development.

City leaders must work diligently to take advantage of the positive notice and make reality match the prediction.


 Love this. I have been following from afar but now finally have the opportunity to invest. My future brother in law lives in Toledo and is looking to quit his job and start fixing/flipping and run property management.

Would you have some time to chat about areas and neighborhoods?

Post: San Diego Flip, 14k sqft - Massive Spread

Jonah Slove
Pro Member
Posted
  • Posts 50
  • Votes 40
Quote from @Kenneth Donaghy:

I will give it a look 


 Awesome let me know 

Post: San Diego Flip, 14k sqft - Massive Spread

Jonah Slove
Pro Member
Posted
  • Posts 50
  • Votes 40

This property is in beautiful San Diego, CA that my wholesaler has under contract, and we are looking for a quick sale at $5,200,000. Comps came back supporting price. Appraisal is accurate supporting price as well. Home needs $800k-$1m in rehab, and ARV is $8,000,000 on the low side! Our contractor walked the property for 3+ hours, and has said, "I got chills walking through this place, because this is an amazing opportunity for someone… this place has amazing bones" We are having trouble with buyers not able to afford the price. THATS IT! This is a slam dunk deal. Address and pictures available.

Post: Time to sell?

Jonah Slove
Pro Member
Posted
  • Posts 50
  • Votes 40
Quote from @Timothy Howdeshell:
Quote from @Jonah Slove:
Quote from @Andrew Postell:

@Jonah Slove tell her to look into capital gains taxes and how much she can exclude if she lived in it for 2 out of the past 5 years.  Renting a $1.3million home is a terrible return.  She can certainly do better with other properties. 


 We can exclude $500k of gains if we are married. Once fees and improvements are taken off too we should be maximizing that. So what are your thoughts on our scenario? She moved in with me 2 years ago and before the property in question was her primary.


 Just a caveat here. If you exclude the majority of your capital gains via the two out of the five-year exemption, then there's no need to do a 1031. I assume you have some repairs that will knock the basis down in the property from 1.3 to maybe close to a million and then you have the $500,000 in capital gains exemption. So you should be good to sell outright. You can then dump that money into rentals which will cash flow. You could even buy properties out riding cash with that much dry powder. That's what I would be doing if I was in your situation.


 Yes totally. The biggest question at the moment is if the cap gains for single vs couple or 250k vs 500k. I need to consult with a CPA and learn what we qualify for.

Post: Time to sell?

Jonah Slove
Pro Member
Posted
  • Posts 50
  • Votes 40
Quote from @Evan Miller:

From a numbers standpoint, the highest use of this capital is to sell and buy another investment, or even just invest in the markets. Even if she just pays the capital gains tax - likely 15%-16% effective unless she has a very high income - it shouldn't be very hard to beat the return she is getting on that true equity. 1031 is not even necessary to justify selling. Here's the quick math:

$1,300,000 (Sale Price) - $130,000 (Sales costs 10% of sale price conservatively) = $1,170,000 net

$1,170,000 (net sale proceeds) - $550,000 (cost basis assuming no improvements) = $620,000 Capital Gains

$620,000 (Gross Cap Gains) - $250,000 (Cap Gains waived for primary res) = $370,000 taxable cap gains

$370,000 x 0.15 = $55,500 cap gains taxes owed

$620,000 (capital gains not including original equity in the home from downpayment and principal payments over 5 years) - $55,500 (cap gains tax) = $565,000 

That $565,000 number is the apples to apples number that you want to make sure you're getting the best return you can from. $2,500 monthly rent (not subtracting monthly expenses and mortgage payments yet) is $30,000 annually which is 5.3% return. Assuming at least 50% of the rent is going to expenses and mortgage payment, now she's making 2.65% on her money. She can get that in a high yield savings account. No hassle, 100% liquid.

Now factor in the equity she had at the beginning, the option of using a 1031 exchange, and intelligently investing the proceeds and there is a TON of room to improve the return on this capital!


 Thanks this breakdown is super helpful!

A couple notes, she owns this OUTRIGHT. How does no mortgage effect these calculations?

Also what is your last line "now factor in the equity she had at the beginning" referring to?

Post: Owner Financed SFH in Boise

Jonah Slove
Pro Member
Posted
  • Posts 50
  • Votes 40
Contract for Assignment
𝗣π—₯π—’π—£π—˜π—₯𝗧𝗬 π——π—˜π—§π—”π—œπ—Ÿπ—¦

4351 N Christine St. Boise, ID 83704Prime Boise
Great Location for STR or Primary Residence and Appreciation
2/1 852 sqft
π—¦π—˜π—Ÿπ—Ÿπ—˜π—₯ π—™π—œπ—‘π—”π—‘π—–π—œπ—‘π—š π——π—˜π—§π—”π—œπ—Ÿπ—¦ :
- $359,900 Purchase Price
- 10% Down Payment
- 5.75% Interest Rate
- $1,726 Monthly Payments
- $300/ Month Tax & Insurance (estimated)
- 40 Year Amortization Schedule
- 10 Year Balloon
π—§π—˜π—₯𝗠𝗦 :
- Cash to Close of $30,990 + CC & TC Costs
- $5,000 EMD- $10K Assignment fee
- Total Entry: $45,990 + CC & TC Costs
- COE 1/24/24

DM for more info!

Post: Is there a deal here?

Jonah Slove
Pro Member
Posted
  • Posts 50
  • Votes 40

Found a lead through an expired listing. Out of state owners who are renting the property currently for $1300. They had the property listed for sale for $319k, didn't sell. The own it outright now loan. They are looking to sell to buy a new rental property in CA where they live  but not in a rush to sell/buy. He told me they would do down to 265K which If I offer cash and we dont use agents maybe $240k. Anyway this could pencil out? The property could rent for 1600 -1800 depending. He said the current Tennants have taken very good care.

Post: Someone who has done a subject-to deal in SE Idaho

Jonah Slove
Pro Member
Posted
  • Posts 50
  • Votes 40

Did you find anyone and close the deal? Im in SE Idaho looking to get connected to like minded folks 

Post: Time to sell?

Jonah Slove
Pro Member
Posted
  • Posts 50
  • Votes 40
Quote from @James Hamling:
Quote from @Jonah Slove:
Quote from @James Hamling:

@Jonah Slove I can't believe people would be so callous to say "don't sell" on a $1.3m property getting $2,500mnth in rent.    I guarantee not a single one of them would pay $1.3m for a property getting $2,500mnth in rent. I and most wouldn't even pay $500k. 

So it's a NO BRAINER, SELL! 

And if you don't have a need for the cash right now, be smart, 1031 it into something else. Something with better ratios of rent to price which will be VERY easy at this point compared to what you have now. 

I suggest to keep things simple. I'd buy new, keep it around median home price, think median rent's, a place people want to live and would be happy to pay rent to live. Simple. Keep it simple. Feel free to go 50% down, but use some leverage, enjoy a tenant making pay-down for you. 


 Ya thanks, it seems like a no brainer. Just having a tough time exploring what else is out there. My direct market isnt the norm as you can see. I would love to chat and hear what kind of strategy you would recommend. Thanks

Happy to chat, feel free to DM. 

For persons in general similar position, wondering "where do I go, what should I jump into" is the WORST way you can try to answer this, looking at all the various market's and deployment potentials first. 

What SHOULD be doing is starting with self-inventory. What your capabilities and expectations are. Are you ok with doing maintenance, or not? How much annual reinvestment in maintenance and cap-x is "ok"? Define this perimeter.     Are you ok with tenant issues or not? How much? Is greater of lessor potential of dealing with an eviction ok?     What is expectations of profit returns? No, DONT make it a per month number that's novice to point of grade-school, set a whole $ amount by yr 5 that is upward desire and minimum required. 

When you START with this self-inventory of capabilities and expectations, than we can take this list and map what it target's. It will define what property and tenant class are viable, what market's, rent ranges and unit pricing. It will even map out market's of viability. 

And than, it will tell one the criteria to weigh by, but what the viable options are so it becomes a choice between viable options instead of randomly saying "oh, which of the 14,000 potential market's do I explore". 

It's an action of using focus vs random chance. 

Generally today what I see for one of the greatest opportunity "zones" is in AAA strategy. Working in path-of-progress, sweat-heart terms from developers attaining sub-market rates, superior inventory, leading to superior tenancy and done correctly, superior returns. 

This market cycle is NOT on where a person looks to "buy a pay-check" which is exactly what one is doing when looking to buy some big cash-flow day 1. The vast majority of time what one get's is a big reoccurring operational expense to match. 

Keep in mind how active or passive you want to be or can be, are you a Landlord OR an Investor, they are 2 very different things that are the most jumbled skewed lines in business by novices/public in mass. 


 Makes a lot of sense. I really enjoyed reading through that Cash flow thread I saw you on. That really changed my perception of expectations. Sending you a DM. Thanks!