All Forum Posts by: Mikael Winkler

Definitely agree with the areas most everyone here has suggested - North Linden (seems to be moving south, as well), Hungarian Village, Vassor Village, Milo Grogan, etc

All-in purchase and rehab of $100k or under is my goal, as well, in the short term. That is getting harder to find, as many of the neighborhoods around downtown are appreciating so quickly. However, those are out there. Just make sure you’re linked up with a good investor agent or even on some wholesale lists.

Good luck!

Certainly agree with @Stephanie P. here. Getting out of hard money into conventional financing as soon as is feasible is ideal long term. The goal would be to acquire a property with hard money and refinance out in 3-6 months, into long term, conventional financing. 

Most lenders will probably make you wait until at least 6 months out from initial purchase before they'll refinance, but there are some that don't require any seasoning periods. Those will most likely be smaller, community institutions.

@Cyle Harris

Hey! With LimaOne (and most HML to my knowledge), they really don't focus on you as the borrower too much. They'll do a credit check and maybe bank statements to make sure you have appropriate reserves.

Really, they focus heavily on the property, and project, itself. Most will lend on anywhere from 80-90% of total project cost, 70% of ARV. They'll have you put together a scope of work and send out an appraiser to do a Subject-To appraisal. Basically, to determine what the property will likely be worth based upon comps once you do stated renovations.

Really, the only way the LLC even came into play, at least in my case, was they required the property be purchased in the name of the LLC, not your personal name.

Hey @Cyle Harris! I just finished up a flip that I financed through a HML, LimaOne, using my LLC. They require deals be financed through one, and it was actually a pretty simple process. I have a bank account in my LLC's name, so the funds I used for my portion of the deal, I simply deposited into that account about a week or so before closing. At that time (last December), they did not require funds be seasoned for any period of time. Not sure if COVID may have changed that, but I don't believe so.

With LimaOne, you link your bank account to your account with them and they'll disperse draws directly into that account for you to pay your crews.

@Marc Rice, that makes sense. Like you said, it seemed like those who were able to pivot to longer term stays for a period of time were able to weather it. Glad you were able to for your clients. I wouldn't close the door on football, either. It's looking more and more like the B1G is going to cave and play, albeit, a shorter schedule and late start. Normal is definitely the operative word, though. If they do play, wondering what stays around campus and downtown will look like compared to a normal season.

@Robert Ellis yeah, I want to say I read that the number of STR in the city decreased by almost half in the early going. I have seen a lot of rentals state they are deep cleaned between guests, directly addressing COVID in some way, which I think is a very smart move.

@Marc Rice have you seen STR begin to bounce back in here in Columbus? Seems like a lot of operators got taken out, but the ones with solid fundamentals, running them as a business, have survived.

Also, with limited entertainment options in the Short North/Downtown right now, have you seen STR in those types of locations remain a bit dipped?

I definitely agree with a lot of what has been mentioned above. For me, when I've learned the most efficiently (for lack of a better term), it's been when I approach it with a specific strategy in mind. For me, that's generally been buy and hold. So, knowing that, one can then focus on what points really matter in relation to learning that specific niche. Things like rehab costs, market rents. And, if you're BRRRRing rentals - ARVs, rental vs. flip finishes, financing/refinancing options, etc. As I go, if I have questions about anything related to those topics, I research online or ask in forums like those here on BP. So, it really is a piece by piece, or measured as you mentioned, acquisition of knowledge.

There really is an overabundance of information out there, so this has definitely been the most beneficial and productive way for me personally. I've certainly gotten myself into trouble when I've been more sporadic haha.

@Clinton Ransom

That’s great! House hacking is definitely an awesome way to go. If you have any questions along the way, or just want to chat, this is certainly a great place to ask!

Welcome @Clinton Ransom! This is certainly a great place to talk REI. Good luck on that first multi family! Are you doing a house hack on it?

I agree with @Natalie Schanne here. Start reaching out to those in your network with what the situation is. Explain what you need to make yourself whole, or close to it. Whether that's a listed sale as-is, working with a buyer off-market who may wholesale, or just finishing out the project and renting it out. If the property isn't seriously structurally compromised in some way, and you have the capital to complete the rehab, perhaps renting it out and letting appreciation be your friend is the way to go.