All Forum Posts by: Kent Hall

@Jason D.

I wouldn't count Dayton out. Large DoD presence and multiple Universities. Plus, a lot has changed in 10 years. Cincinnati continues to sprawl north and the divide between these two metro areas keeps getting smaller and smaller. I think Cincinnati's rising tide means very good things for Dayton as well. Although I admit, my crystal ball is not any more reliable then anyone elses'.

Mica, if you don't feel comfortable with what you see then look elsewhere until you find a place that works for you. There are many many markets for REI. If you don't like the Midwest then look for somewhere that suits you better.

Not sure how it compares, but the property below is listed at less than 90k on the same street, it is also 3 bed. 

1915 Catalina Ave, Cincinnati, OH 45237

But if they have legit comps for similar properties sold in the area, and all your numbers on property tax and insurance are accurate, then it may not be a bad deal. 

I think that area is a little rougher (not “war zone” bad though), so make sure you have a strong PM. 

I hope they still call it the ghetto at least. I knew it was changing, even back in the early 2000’s when I was there it was getting overhauled. Maybe it is just a name and I am just a bit nostalgic, but it will always be the Ghetto to me.  

Hey Matt,

Any chance you are a fellow UD grad? I know it is painting in broad strokes, but when I hear of an engineer with a connection to Dayton it seems they usually have an intimate knowledge of the Ghetto.

I am still pretty knew to the REI scene, but I do have a small multifamily in Kettering and reliable folks that I work with in Dayton and Cincinnati, so feel free to reach out if you have questions, need recommendations, or just want to spit ball ideas.

Along with all the great resources on real estate investing and frugality available through BP, it may serve you well to check out The White Coat Investor (blog, podcast, or book) it is an investing/mindset book for high income earners (especially those with significant student loans).

Best of luck.

Sorry, forgot to specify, looking specifically for cap rates.

@Michael Klinger, great info, Thank you. Is there anywhere that you know of that gives more specific break downs on areas/neighborhoods (Clifton vs Norwood vs Deer Park, ect)?

Something else to consider, if you are worried about the bank not giving you financing due to lack of personal credit history, if you find a 5+ unit property then many lenders base their decision to lend on the property itself (as in the buildings history of income and expenses). So that could be another option.

I don't know if PAs qualify, but there are also Doctor Loans, which are 0% down (or low down payment) that are offered based on potential future earnings for those in high income jobs and not based on passed credit history.

If you find a good enough deal then the money will come.

I would say follow the WCI advise on paying down your debt and "living like a resident". You could also add a house hack in to try and have your mortgage/cost of housing be as low as attainable.

Then after your debt is paid off (hopefully 2-3 years after you finish your training), keep on living frugally (no need to buy a Porsche just because all your loans are paid off) and direct the extra capital toward your RE investing.

Hope that helps, best of luck, sounds like you are on a good path.

No other 4 unit properties that I have seen have an HOA. My understanding is that this one does because all the properties on this street used to be owned by two brothers and the road leading to them is not a city owned or maintained road. So when they split up the properties into separate apartment buildings the HOA was needed to support road maintenance and road clearing, things that the city will usually cover for roads leading up to a smaller apartment building on a city road.

When I was considering this property in the spring the HOA fee is what turned me off. Not because of the HOA itself, but because the extra expense made the numbers unpalatable on my spreadsheet.