All Forum Posts by: Mikael Winkler

@Susan Tan that's actually a great resource! I would agree with @Zeke Liston regarding Hilltop. C+ might be a bit high. And Franklinton may not be a B the further west you go. But, those sorts of things are really splitting hairs. As a quick reference, it seems pretty reliable. A pretty handy site I also use occasionally is https://communitycrimemap.com/. It breaks crime down by type, date, etc.

Regarding Columbus as a whole, though, all of these areas, especially within reasonable distance to Downtown, will continue to rise. Investment is happening at such a rapid pace. 

@Jonathan Rivera absolutely! Good luck with whatever you decide to do and moving forward in your journey.

Hey @Kalyan Kuchipudi! I would research area properties similar to yours to see what they may be selling for in similar conditions. It looks like you'll be grossing $2000/month, which is pretty good for a property you're $150,000 into. It's really a decision of, if you sell, will that return be put to better use than the return you'll be getting from that property if you keep it.

@Mitchell Toney

Most definitely. And, though I’m not sure if it’s this way with all lenders, but you may get about a month or so before the first mortgage payment is due. I remember our house hack, my wife and I closed late December, and payments didn’t begin until February.

I would maybe bring your landlord into the loop now, just as a heads up, as well.

@Mitchell Toney

Would you be looking to do renovations on the property, as well? If so, that can also eat up a lot of that time difference. Plus, it would be easier to do renovations while the property is still vacant. That is, if you can hold the property vacant and cover remainder of your lease during those few months. That can definitely be a lot to handle financially.

Hey @James Quinn! Honestly, right now, I would really focus on what you want out of life. What your life goals are, independent of Real Estate or financial goals. Once you have a focus on that, you can bring in your financial goals to support those life goals. I'll tell you, my life goals have certainly shifted from when I first became interested in real estate investing. Initially, my girlfriend and I were still just dating, lived in a cheap apartment, and had basically no responsibilities. Now, we're married and have a daughter. My priorities have shifted considerably.

Right now, certainly study, stay here on BP, look into the different investment strategies you see discussed on here and other places. But, also, don't forget that you have plenty of time. Enjoy the journey. Burn out and/or obsession claim just as many victims as inaction.

With that being said, I, as well as, many others on here will be more than willing to help you out with any questions along the way! 

@Michelle Hostetler

I do agree with a number of points above. You do win either way, it's really a question of if the huge capital gain (though taxed more heavily now) could be parlayed into more investments potentially. 

I do really like @Zeke Liston's point about the HELOC. Yes, you sacrifice a bit of cashflow, but if cashflow is already great, perhaps it's a sacrifice worth making to access that equity. You keep the property and get the benefit of using the equity.

Hey @Jonathan Rivera! I guess it's really a question of will those repairs you'd make worth the money, time, etc you'd spend, and would they net more in a sale? I would really comp out other sold properties in the area that perhaps have finished basements and the amount of baths you're looking to end up with. Do those sales prices warrant the money spent?

If you were to sell those two as they are and still net what you need to begin you're new plan in the Midwest, I would say maybe the effort in refinancing, renovating, etc isn't worth the squeeze. But, it really is about what will get you toward your goal.

Welcome @David Ton! Columbus is a great market, with definite opportunity for cashflow. Really, the areas depend on the capital you have available. Also, what type of property you're wanting to focus on - single family, small multi, etc.

Hey @Timothy Johnson! These are definitely good questions to start. I just used a HML, LimaOne, on my last deal. First time using a HML. A huge thing that I found out - most of them work off a reimbursement model. Meaning, you have to have enough funds on hand to get the project started. With LimaOne, they recommended having at least 10% of the renovation cost ready on-hand (that may have even been a requirement if I remember). How it worked with them, I had an amount for each rehab item in my escrowed renovation funds. I had to pay for each of those items to be completed, HML would send out an inspector to check and approve, then the funds for those items would be released, effectively reimbursing me.

That was a huge surprise initially, as I had no clue that's how it worked haha. I figured I would say "hey, I'm about to start these items, I need those funds." But, nope! It wasn't the end of the world. But, that makes it really important to really make sure you're timing items the best you can and not having the crew work on too many things at once. Because you can't get the full draw until the item is completed. Also, typically, each time they have to send out an inspector, there is a couple hundred dollar fee that is withdrawn from your escrowed renovation funds, so that's something to consider, as well. 

Any other questions, just let me know!