All Forum Posts by: Kyle Johnson

I don't need any info on homeowner's insurance anymore but I still need recommendations on property managers. 

@Brandon Sturgill 

I have 2 duplexes in the process right now. One property is in North Linden and the other is in the Holly Hill neighborhood I believe. 

I'm looking for recommendations for homeowner's insurance and property managers in Columbus Ohio. Any help would be appreciated thank you. 

Thank you all for the responses. It is the one on Waltann and there was one that sold for 426k a month ago and the rents were at 1k each with 4 two bedrooms. Always good to get a locals perspective. Thank you Brett. 

I want the community to check my analysis on a property I think I may put in an offer.

It's a 4 plex in Paradise Valley Village neighborhood in Phoenix Arizona. It has 3 two bedrooms and 1 three bedroom in an apartment complex. Asking price is 445k, rents are at 31.5k gross now or about 2,625 which I strongly believe is below market rent. Please correct me if I'm wrong. HOA fee is $2,400 a year. Water, sewer, and trash is $4,400 a year and property taxes will be around $1400 I believe. I'm not sure how much insurance is but I'll put in $1,500 right now for the calculations.

In addition I expect a  10% management cost and a 15% maintenance cost. These may be high but I like to over estimate to be safe. I will use a 25% down payment and can expect a 4% or less interest rate amortized over 30 years. Using these conservative numbers I get a negative cash on cash return of -5.79%. However that's not my question.

I plan to bring up rent the rent which I need double checked. Rent o meter and zillow states that a 2 bedroom will go for 1100-1300 and a 3 bedroom can go up to 1300-1500. Again I plan to use conservative estimates so my future rent could increase up to $4,600. Is that a fair estimate? 

In addition I was planning on installing sub-meters for water so the tenants will pay for their water, possibly cutting my utility bill to possibly half of what it is to $2,200. Using these new estimates and maybe a 3.25% interest rate for a mortgage, because I have good credit, my new cash on cash return could be 12.88%. This seems too good to be true and I just need help making sure that the new rents would be appropriate. 

On another note are people still increasing rent on their properties despite the pandemic and economic recession? I don't believe this is possible with my predictions. Because of the current events, I have used more conservative increases in rent. Any feedback would be appreciated.

I do want to say that the seller brought down the price to 445k but wants the earnest money to be 10k and without an appraisal contingency. This is my first time investing in a multifamily unit and recognize the possible risks and rewards but would like to get people's feedback. Thank you for your help and time. 

I'm currently pre-approved for up to a 400k loan amount in Arizona. I've been looking at properties and the nicer ones do sell quickly and typically get overbid by others. Although these multifamily properties that I'm looking at are nice, the cash on cash return is pretty low. The real estate agent and investor that I'm working with is from this community and he recommends expanding my price range from 400k-600k. I know appreciation is important but I'm heavily weighted towards cash on cash returns and evidently it's just not that strong in Phoenix or in the surrounding area. My question is do I just forget Arizona because the prices are too high and look into other places like Columbus Ohio where the prices are more reasonable and have a higher chance of getting a better cash on cash return? How do people feel about this? All comments are appreciated.  

I'm currently getting pre-approved for a conventional loan in Arizona. I'm particularly interested in multi-family units in Phoenix and Mesa. Does anyone know of a resource where I can see the types of neighborhoods in these two cities? If not, can you inform me what neighborhoods are good and bad to invest in? Thank you for your advice. 

I've talked to one so far and am currently getting pre-approved right now to start looking. 

I'm interested in investing in multi-family properties in or around Phoenix Arizona and would like to know how I can get pre-approved so I can close on a deal faster. I'm possibly interested in 5+ units and understand that a commercial loan would not require a pre-approval letter. Thank you for the help and any advise that you can give. 

I'm a new investor interested in buying multifamily units in either Phoenix or Cleveland. I'm interested in buy and hold multifamily units or small apartment complexes and am primarily interested in cash flow. I currently live in California and am interested in having a property manager for my rental properties. I was originally interested in Cleveland but have hearing that Phoenix has been cash flowing pretty well. However, due to the pandemic many people out of Arizona are buying in Phoenix because of the cheaper housing, good weather and the ability to work from remote. Because of this, I've heard from a few sources that it's not a great renting opportunity right now. Perhaps I'm analyzing the two situations differently but all I care about are the numbers and what will provide greater returns. I recognize that there are opportunities in each area but I'm asking the community their thoughts in investing in either market. The proximity to Phoenix would be great but I don't see myself being there too often unless I'm buying. 

Which market would you choose and why? Which is better for my goals and why? Thank you for your help.

From my research these two areas tend to have