All Forum Posts by: Melissa N.

@Lynn McGeein That is a fantastic idea!! 

Thanks to everyone that has offered advice. Certainly, polarizing ideas. My husband and I have been having this debate for days so it's refreshing to see we are not the only ones!

He wants to replace them all right away. I want to find a solution (love the screamer) that helps us maximize the life of the water heater without spending money we don't need to spend. Perhaps the compromise is replacing the ones that are 18 years old but keeping those that are closer to 10. 

We have a month to figure it out!

Check the Marcus and Millicap report. I also check Forbes and the for a block by block city-data.

Most of all I'd say study an area and see if there is growth. Even if an overall area has a declining population, there may be certain areas that are growing. 

Cincinnati has job growth and diverse job sectors. That's why I like it but certainly others may not. 

Cincinnati has an average of 2% growth over the past few years. Diverse job sectors and cash flowing properties. That's why I like it but everyone has there own goals and opinions. Lots of ways to make money in real estate. 

I am buying a 12unit on the east side. I'd say start by analyzing every deal you can find. Look at the building, check the crime site, neighborhood scout, city data (population, income, vacancy - can all be found sometime even block by block). This will help you spot a deal when you see it. Run the deals through the BP calc and make offers (even if you think they won't accept).

Where you invest and why is really a personal choice. Define your goals and analyze areas then deals.

Both are probably D/F neighborhoods. Check out raidsonline.com for crime stats across Cincinnati. It will be help you get a feel for the crime across the city. 

I live in NY and am investing there. Visit and meet with lots of locals  - Realtors, lawyers, property managers, etc. 

Good luck!

Hello all,

We are closing on a 12unit next month. The inspection showed there are 8 water heaters that are near double life expectancy (so they are 10 year water heaters but some are 18 years old). 

Would you replace them all before they become a problem?

What about installing a drain pan to a drain instead? I don't know much about this but seems logical to do in every unit anyway. My (possibly stupid) question is, if you do this then how will the tenant know there is a problem? No hot water? I guess I'm concerned I'll get a sky high water bill if there is an issue and no one tells us.

Thanks!

Melissa

Perhaps not the answer you want but I'd start by identifying your goal then pick a strategy that helps you meet it. 

Sounds like you want buy and hold, so are you house hacking again? If so you maybe able to put less down.

I would keep learning and saving until you have more for an investment but you can also try to find a partner. 

Another option is finding a deal offering seller financing. 

Good luck!

I'd say 1% is the norm. Who is holding the earnest money? I'd suggest you have your lawyer/title company hold it so you have a neutral third party. I had an incident with a broker that was co-mingling funds and was trying to keep it (sure, unlikely but now I'd warn others to be cautious - desperate times...)

Congrats on the baby boy and making the decision to change your path today! First, I'd say focus on the positive. You've learned some important lessons - don't forget them and use them as your 'why' when the temptation to stop comes. 

First, educate yourself on how to evaluate a deal. There is a ton of great resources. If you are looking to buy multi-family deals here is how I educated myself:

1. BP Podcast (and the BP calculators are a MUST. Analyze a ton of deals using the calcs and you'll learn what is good and what is bad pretty quickly)

2. JakeandGino.com (create a credibility book - you've done a deal and learned - more than most!)

3. Themichaelblank.com (10-minute offer is great and he has a letter of intent you can use when making offers)

4. Morrisinvest.com podcast for motivation (they do turn keys but I love his freedom number info).

Ohio has some great cash flowing areas so you are in a position for success. Education plus action and you will do well. Good luck! 

Yea, we learned the pet fee vs. deposit lesson already on our first Single Family. Best to learn small I guess!

I want to adjust everyone's rent over time having the majority renew in spring/summer since those will be the easiest times to rent. Most units are in decent shape but one of the units with 4 pets has the rug covered with area rugs. Not sure what that means but I have a guess.

Our thought right now is - 2 pet limit under 35 lbs. Charging a $150 non-refundable pet fee and $25 pet rent. There are about 4 other complexes in our area. Three of them do exactly that and the other does not allow pets at all. We are located right next to a great park. I consider this one of our advantages especially for people with small pets.  

I like the idea of implementing the pet rent right away and agree that asking for a pet fee now is probably pushing it. Thank you! 

@Derek Dame Thanks! Yes, we can charge a pet fee. 

We are trynig to think of a way to raise it all without losing everyone. I guess the answer is do it slowly and in spring so they'll fill up easily. Curious what other Multi-investors think too. 

Tackle 3 units at a time? Offering the current tenants a lease renewal at market with a pet fee is my initial thought then if they leave we should be able to fill it quickly given the area.