All Forum Posts by: Mike Alber

@Account Closed Thanks for the response!  Columbus has so many great spots, but I love the Clintonville, Short North, Old North, and Dublin areas... but that's definitely not a comprehensive list!  As far as strategy, I don't feel comfortable buying something that needs a lot of rehab.  Mostly I'm looking for low-unit MFRs that are fairly turnkey in B-neighborhoods (or maybe C+).  

Hi all!  I'm a new (but very serious) real estate investor living in Los Angeles.  Since my own market has a much higher price point, I've settled on locating 5-15 unit MFRs in Columbus, Ohio.  I'm relatively familiar with the Columbus area as I lived there for a few years, but I'd love the help of some boots-on-the-ground people who know the market well. 

So... any awesome realtors, local mortgage brokers, or property managers you'd recommend in the area?  I really want to develop some great partnerships with people I can count on.

Thanks in advance!

I found a multi family house on a broker's site... but then, in researching, found it listed (more cheaply) on Zillow as FSBO. Any idea what the etiquette is here? I've emailed with the broker a couple of times now. Should I keep talking with the broker but try to get the cheaper price? Or go straight to the owner through Zillow and cut off contact with the broker? This feels like kind of an odd situation but maybe it's more common than I think?

Im very green and could use all the advice you’ve got. 

@Bill O'Donnell 

Thanks for the suggestions!  I'll definitely check those sites out.  As you say, a commercial RE agent is probably my best bet, but I'm not quite there yet and don't want to waste anyone's time.  I'd LOVE the experience of a 4plex -- the friendlier loan terms along would be worth it -- but I just can't seem to make the numbers work in LA and can't move due to my job.  

As for the commercial loan, I'm not too scared by a higher percentage down, but the idea of having to pay a big balloon payment after 7-10 years is a little frightening.

I'm just as new as you and in a similar spot, but my questions would be:

--Would you be putting the full 20% down on the $1.6m or is that divided among the other investors as well?  Or is the plan for each to pay 20%?

--If you're getting a loan on the 80%, what kind of rate are you looking at?

--Also another question I'd be asking is why the 10% vacancy?  Is the current property management to blame or is that pretty standard for the area?

--Do you have the rent roll?  How long are the current leases signed for?

Again, I have no answers (sorry!) but it sounds like it COULD be a good deal... especially if you got close to that $5831 cash flow/mo.  

(Really sorry, I think I posted this in the wrong spot!  Any way to move it?)

I'm a new RE investor living in LA, but I have family in Michigan and am looking to invest in a small apartment building there.  Since I can't just drive around looking for likely places, I was wondering if there's a good online tool I can use to get started looking for these types of buildings.  I found LoopNet.com, but are there others?   Eventually, I'll likely connect with a realtor to find a property, but I'm just getting started and want to know the kinds of things that are out there.

One final question: this would be my first investment property.  Is it crazy to start with an apartment building?  They just seem more stable and a quick way to own many doors instead of one-at-a-timing it.  

Any advice for things you should know in this arena would be appreciated!

@Kristine Lynch I'd love to hear what you do, as I'm in a very similar spot.  (We bought our house without taking rental cashflow in mind... thinking of selling vs. renting to keep another appreciating property.)   I keep thinking about how I wish I'd bought Southern California property 10 years ago when I first moved to town... and now I'm thinking about selling it?  But it could be the right move, for you and me!

Good luck with your decision! 

@Greg Scott Thanks so much for the response!  I see you’re in SE Michigan, which is an area I’m familiar with (went to UofM, Go Blue!) and had considered exploring for investment opportunities.  

I wondered if this would be the most common advice, just selling and finding a better, more cashflow-friendly property.  I’m just weirdly hesitant because I’ve already got this one in hand and the SoCal RE market just seems to be recession/market proof.  But yeah, your point is well made.  Thanks for taking the time.

Hi all!  I'm a very new RE investor who has a full-time job I have no interest in quitting.  However the idea of building a stream of passive income for retirement is really appealing.

So I'm wondering for my first project, should it just be my current house? Obviously, I didn't buy it looking to maximize cash flow. I bought it because I liked the location/size/cost/etc. But as my 2 kids get older, the 3BR SFR I'm in feels too small and I'm thinking of moving. I recently got a nice chunk of capital (I work in the entertainment industry and my income is very boom-and-bust) and so coming up with a new downpayment isn't a huge issue... but I don't know if it makes sense to keep what I have and buy, or just sell and look for a better first-investment opportunity.

Some details:

Currently 3 years into a 20-year, $560K refi mortgage at 3.625%. The current mortgage payment w/ insurance and taxes, is $3982

The house originally sold for $579K (relatively cheap in my area of Woodland Hills, CA)

The refi I did 3 years ago gave me an appraised value of $654K, though similar comps are now closer to $720-750K.  I still owe $500K on it, so there's a bit of equity there.

Rental comps in my area show me I would likely NOT get cash flow if I kept this 20-year mortgage.  The average seems to be $3500-3800/mo.

So my questions:

--Does it make more sense to sell it, use the equity as a downpayment on a new house to live in, and just look for a better property for my RE investment goals?

--Refinance back into a 30 year where (assuming a decent interest rate) my payment might be around $3100

--Just accept a couple hundred/month of negative cash flow because I'm paying down my property and ultimately I'll own it outright in 16 years in a very expensive, high appreciation area. (This seems like a no-go, based on what I've seen in BP thus far, but owning more So.Cal property never seems like a bad thing.)

--And finally: if I sell or rent, should I try to upgrade even more (add a pool, update the kitchen, etc) to get a better price?  We've done some improvements, but I could definitely sink $50K into a pool and another $20k into a new kitchen to help the value.

--Am I even asking the right questions??

Thanks for reading!

-Mike