All Forum Posts by: Michael K Gallagher

Thanks for sharing @Devon Shaw are there any hot pockets of investor activity that you are specifically tracking?   any tax abetment areas or other features that make the market appealing?

@Mark Updegraff thanks for sharing, seeing much of the same here in central OH in the industrial sector.  For similar reasons you mentioned with access to both I70 and I90 pretty easily as well as being in range for the eastern sea board makes it a logistics hub.  

the additional of richenbacker airport, and the Ohio river really make the freight and logistics passing through a major economic driver, but its far from the only one.

@Andy Jimenez is this a backfill of an existing lease?  did a doc build the space out and then couldn't open for some reason?  I'm assuming if its a full build out it ran in the area of $600K +/- depending on size....odd to think it got built out without a lease or other commitment from someone.

Ultimately in my world (retail medicine) it comes down to the physical location and attributes as it relates to the surrounding demographics and populations.  If you have not done so already I'd highly recommend having a study done on the space in relation to surrounding population with the dentist in mind as a way of showing a solid customer base. 

@Frank Flores got to 1 up @Cameron Valentine here.  The low down payment house hack is the way to go. It builds wealth and most importantly cuts your expenses and gives you a front row seat at being a landlord.

Was the best thing my wife and I ever did.  

If you are willing to live in urban areas you may want to talk to a local bank in your market and see if they have any incentives or grant loans for certain areas.  

 @Jimmy Lieu fantastic insights! couldn't agree more with the sentiment that central OH has the cashflows and appreciation that intersect for an unique and valuable investment. 

Tell me more about Swiss realty?!?!  Haven't seen you around the forums before but that's clearly my issue looking at your posts and votes stats!  

You guys focus on investors? any particular area you concentrate on?  just curious and interested, would love to catch up at a meetup and learn more in person! 

 @danielle, yeah I think we'd all like that hahaha!

my first question is define net profit...do you actually meant net profit, aka taking into account all expenses etc? if so that's going to be a deal that needs significant capex improvement to hit those margins.  

if you just mean the delta between your mortgage (are you paying cash or financing?) and rent, that's more doable, but its not what I'd consider a net profit.

Out of the markets you are looking at, personally I'd only give the time of day to Dayton.  Its close enough to central OH that it will eventually get the economic growth we are seeing in cbus, and surrounding counties, and it has a decent employment and economic diversity, ie military, medical, manufacturing, higher ed.  Again nothing compared to cbus, but decent.  

The rest of the markets you mention are heavily dependent on manufacturing and more specifically automotive (unless someone else can prove me wrong which I'm open to!) so from an economic diversity standpoint I'd deprioritize them personally.   

For what it is worth, as a side note, Youngstown is well known for being one of the most violent cities in the country up until recently, and it was historically mob run, i'm not up on the latest organized crime news and such, but again other than the shut down Chevy Cruise plant IDK what they got up there for jobs...

In general when you are dealing with properties in ohio, under 100K you are going to have heavy capex, and generally will be in areas that are challenged and then management will be the make or break factor on the properties.  

Cheap properties are often the most expensive in the long run, and while they may pencil out with a $500 a month net profit, that's only $6K a year in "profit", and that disappears pretty quickly with a couple evictions, some damage to property, and a furnace that goes out.  

@Kristin Jarman I'm sure this is meant to sound enticing especially with the payments being "guaranteed" and tone online is hard so hopefully this doesn't come off too crass or anything but...

Might just be me, but the idea of taking over another contractors failed or half done project, regardless of payments being "guaranteed" or not doesn't sound like an enticing project to me.  sounds like I'm gonna spend most of my time and money undoing garbage work before I get to actually make progress.  But I'm not a contractor so what the hell do I know.

Candidly anytime I see the words "investor friendly contractor" I see: "i'm looking for someone cheap"  and you always get what you pay for in this industry, and every industry especially when making anything! 

cheap ends up being the most expensive every time.  but again what the hell do I know.  

The Latest OTM episode calls out some markets that I've been hearing about for a while, ie Dallas, but one specifically that caught my ear....

@Shyd Coloma the word might be out on Oxnard!  

I do generally agree with the sentiment of Austin and the other hosts that fundamentals will always win out in the long run, and this by nature is a long term industry, even the sales side I'm learning.  

@Albert Gallucci this is the 64,000 question and I tend to agree with @Jaron Walling it's really not that cut and dry.  Generally larger commercial properties and shopping centers are easier to classify with hard and fast rules, but to the points above the residential areas really move very quickly and have way more nuance than most people care to admit.

zip codes are generally way too large for my liking at least in my market to provide any kind of insights other than macro level economics but even then highways or rivers that cut through a zip code can end up with totally different trade areas.

we can get pretty granular with cellphone data and with grocery center data to understand the trade areas and their true boundaries, but that kind of data pull is generally only cost effective for investors doing larger scale projects or developments, and honestly we still just end up getting on the ground and feeling it out, so I generally tell people that the money is better spent on a plane ticket and weekend trip in the area you are looking rather than any kind of "trade area" level data studies.

and generally B class in 1 area means something different than another.  and then within that B area, there is likely nuance and their own levels of desirability.  

Hi @Ofir R. I'm not personally sitting in that market, though i'm only a few hours away, but we do ground up development all over the country I'm sure we've got someone in that market that can assist you.  I'll shoot you a pm to get you connected.