All Forum Posts by: Michael K Gallagher

hey @John Mack I've never personally done this but I don't see any issues with it.  If someone were to ask to review the standard lease I have on the unit in question, I would not have an issue showing them.  

Hey @Chris Hodge big congrats to you!  If you are in a conventional loan situation there should be no issue in renting things out by the room.  I would absolutely recommend doing a lease agreement for each roommate...just to keep things easy and in writing. You are 100% legally aloud to rent your rooms as soon as you'd like after purchasing, the only thing that would prevent you from doing this is if there is some local codes that prohibit a certain concentration of people living in a home.  But something tells me that even if you rent 1person:1 bedroom you'll be fine.

Congrats and good luck!

@John Vail The only thing I would change is taking into account the cap ex and maint expenses.  I see you have some vacancy in there, but even if you plan to manage it yourself I'd still include the management fee so that you understand what the numbers will be once you do have a manager.  I usually use 5% for each maint and cap ex, and then not sure what the going rate for prop management is in your area, but even 10% is a good planning cost at least from where I am at.   

@Dallis Gibson Cbus is a great area.  I'm an agent in the area and up until this past September I was house hacking a duplex with my wife.  We still have the duplex.  Would love to discuss what you are looking for and help in anyway I can.

Cheers,

@Nikki Yankowski very interesting question and observations! The advantages and disadvantages I think depend on the goals of the investment. For me if my end goal is flex-ability and appreciation I think I'd lean towards buying many SFR in the same development. Thats the only thing I can see being beneficial to doing it with SFR is that you can break off 1 or 2 and sell them to capitalize on some of that appreciation while keeping the rest for cashflow.

If however the goal is the lowest operational costs possible...I'd say all under one roof is the way to go, to your point, it's way more efficient and standardized that way.   

@Arn Cenedella thank you for this perspective, and detailed write-up! It is quite enlightening, and refreshing to tell you the truth.  Cheers, and thank you!

Hey @Damien Anderson I believe you are correct.  It sounds like there is some miscommunication on how many units are being purchased.  To your point that sounds crazy and like the bank does not realize its more than 2 units.  

My hypothesis on this subject is that the safest rental place to be in is the median/high middle rent prices.  So for me in Columbus OH my units are in the 1200-1400 range.  My theory is that in goods times, people are moving up and will want to move into a town house with a back yard, and updated fixtures...but also in a time of economic down turn, if someone is currently paying over 2K a month or had to sell their home...they will drop down to my range as well.  So in either economic situation I have a large tenant pool to choose from.  

Again just my theory using no data whatsoever...just some yankee logic.

@Daniel Carlson there is some great advice in here!  Especially from @Nathan James with his heart to heart recommendation.  That is probably the best course of action.  But to your logic I don'y think you are under any requirement to honor that "month to month" agreement.  As far as I understand it as long as you give notice to not renew the lease I don't see any issue.  But I also understand your worry about the moratorium, that is an area I am not familiar with those rules.  

I'm local you Cbus I live in Franklinton and have a duplex in South of Main, if you have any questions about anything as you start out don't hesitate to reach out, I'd be happy to help if I can.  

What part of town is your duplex in?

@Sam Cerreta I currently Live in Franklinton, my wife bought a flipped house here.  I also used to live in SOMA in a duplex my wife and I house hacked.  I'm an agent in the area and would be more than happy to talk any specifics with you and understand what your investors are looking for.  Anywhere surrounding downtown, with a couple of exceptions, qualify for Tax abatements.  Rents, again depending on the quality of the unit, range from $750/mnth to $1600/month depending on the block and the property.  As far as "affluence", goes I'd rank the areas as follows:

1) German village/Bexley

2) short north

3) Olde Town East

4) Franklinton

5) South of Main

6) Linden

7) Hilltop

However, Franklinton is great to live in, like anywhere.... don't leave your laptop in your backseat overnight, and you hear the occasional gunshot, but honestly that's anywhere close to downtown.

That's just my opinion from living in the city for almost 10 years and living in two of the mentioned areas.  but like I said if you're clients are looking for something specific or you'd like some boots on the ground support please don't hesitate to reach out... I literally live in Franklinton so happy to go for a walk and snag some pics for you or whatever you need.

Cheers, 

Michael