All Forum Posts by: Michael Wentzel

@Shawn Price Thanks for the article links. My price points wouldn't have allowed me to get too close to campus in any case. Franklinton sounds interesting. If the neighborhood is trending in the right direction, I'm more than happy to be a part of that.

@Matt R. Thanks for doing some research for me. The presence of The Ohio State University and several large corporations, along with population growth have made it interesting for me. I was discouraged that the crime statistics are about the same as Pueblo per capita (not good). However, I think the population growth, economic growth and low prices are enough to interest me.

@Matt R. Good to hear from you old friend. I'm not fleeing Colorado. But in my long-term plan I'll need a second larger market for purchases. Diversification isn't bad.

Have we talked about taxes before? When I was initially looking in Ohio, taxes scared me away. I tried to get some input from others about how tax rates state-to-state or area-to-area impacted their process in choosing a market. Surprisingly I didn't get much response.

Don't worry, I have my spreadsheets and I'm running my numbers. Higher taxes in some areas of Ohio make the margins thinner, but in other areas the tax rates haven't put me off.

Mike

Hello people,

I live in Colorado Springs, CO and I'm currently purchasing, rehabbing and refinancing properties in Pueblo, CO. I've been looking for a second larger market to enter. Being from Ohio, I've considered Cleveland, Toledo and Columbus. I think I've settled on Columbus and have started to look at properties there. There are certainly a lot of cheap properties in the city, but that doesn't necessarily mean they are going to make money. So here's a few questions...

I would like to purchase properties in the $20,000 to $30,000 range. Is anybody doing this? Have you found a good or bad areas for this price point?

Is anybody buying, rehabbing and refinancing? The neighborhoods I've looked at are so riddled with foreclosures I feel like it will be tough to get a decent appraisal after the rehab.

I would like to chat or email with a few investors, Realtors and property managers to learn more. So contact me if you have some insight on Real Estate in Columbus, Ohio.

Mike

@Account Closed If you're willing to start in some less desirable neighborhoods, you can learn and make mistakes with smaller amounts of money. I've been buying, rehabbing and refinancing in an area with "cheap" real estate. I'm glad I've made my mistakes and learned on $50,000 properties rather than $150,000 properties.

Mike

@Darrin Wesenberg We have had luck working with regional bank out here in Colorado. When it comes to including the rental income to qualify for the mortgage, I seem to remember my lender saying we needed to have owned rental properties for more than two years. 

@Brandon Sturgill  had some good advice. Start making phone calls. You can normally have a conversation with lender (especially local or regional banks) without them running your credit. You should be able to figure out in the first five minutes whether or not it is even a possibility.

Mike

Big Beautiful Brick Homes! I guess we should learn the importance of "boots" on the ground.

Mike

@Nana K. Well done getting free education on Bigger Pockets. And congratulations on taking your first step.

I also noticed that you didn't have a line for vacancy. I take out 10% of monthly rents for vacancy. That would take you down to $126 per month. But many investors including myself target $100 to $150 a door after all expenses. So you are right in there. With a newer property and likely some appreciation, it seems like you've found a good deal. I hope it goes well for you.

Mike

@Christian Kenworthy There seems to be a consensus. Spend you time on Bigger Pockets. Listen to every podcast. Look up every topic that interests you in the forums. Then try to get out to a couple Real Estate meet-ups in your area to meet some people actually doing it. Offer to buy them coffee and start learning for free. 

After two months of those activities, if you still think $50,000 for a program is a good idea, go for it. But I think you will have found a better way forward by that point and still have some cash in your pocket.

Mike

@Brett Vandervort Welcome to BP and to Real Estate investing. I agree with @Hattie Dizmond If you can get into a small multi-family (2-4 units), you'll be able to have a relatively low down payment and great interest rate. It is a pretty safe and easy way to get into investing. As far as finding a deal, you'll just need to keep looking. I hope the pieces come together for you.

Mike