All Forum Posts by: Mike German

Hi @Daniel Soovajian,

I’m biased to live in the Columbus and can’t speak to the other two.  Keep in mind that Cbus and most major markets have seen a ton of price surge.  The small, multi-family properties that I target have been getting gobbled up with full cash offers right away.  The market still works- just need to open your find what’s works for you.  

Also, regarding $35k cash, just about every property will need some work.  Give yourself more wiggle room with a lower purchase price to account for any surprises.

If you head out here, let me know!

Good luck!

Talk to @Robert Ellis- they have a bunch of campus connections.

hi @Wayne Popelka,

(I’m a Cbus/ Central OH investor with ZERO Cinci market knowledge; thought I’d send some general advice).

I love that you are considering heading driving to Cincinnati first. Online property pics/data are one thing but nothing beats the boots on the ground neighborhood check. Check out the Queen City REIA (also Run by Vena Jones Cox who runs the Central Ohio group)- great education/training throughout the year and one of the best places to build your real world network. Find some Cinci PM's to get an idea of the right neighborhood (balance of solid rent without massive headaches).

Good luck!

hi @Byron Kearns,

Before getting finding your target price, sounds like you may have more due diligence regarding repairs (age/ condition HVAC, plumbing, basement/foundation, windows, garage, exterior foundation, interior condition in general, selling price of house/condition in that area).  Certainly can find these during inspection and have a backout clause if it’s too much but it’s good to have an general idea up front.

Regarding a buy/hold, the biggest X factor is determining a rent range in that area; if it’s $200 less than you thought, it may go from positive cash flow to negative.  Talk to some 3 or 4 PM’s about the zip code or general area and get their thoughts.  Check main rental sites: Zillow Rentals (for house rentals, not apartments), Realtor.com, possibly craigslist. Make sure the numbers work with everything built in (private/traditional money rate; hedge for vacancy/repairs/etc; 

Hope this helps!

Thanks for the kind words, @Adam Jutte- I was in your shoes not too long ago.  I think taking some consistent action (building your contractor Team; getting your banks lined up; researching lines of credit; etc) all builds more confidence and awareness of this business.

I haven't done a BRRRR/partial; I do know a local lender that can add rehab into loan (and not hard money rates). Send me a PM and I'll share one that I know.

Hey @Adam Jutte, welcome to BP!

Congrats on getting ready to take action!I think you are asking about zip codes since Columbus area is a all 614 area code.  

Regarding up and coming areas, just drive around downtown and you’ll see the activity.  ons of near downtown (43204, 43205, 43206, just to name a few) with lots of competition, too.  Check out the variation of the “As Is” prices for $30k rebuilt homes for $300k+; probably a good sign that there is upside potential.

Regarding the best returns on rent areas, you will likely struggle with cash flow in A class areas like Dublin/Upper Arlington, etc, but have better chance for appreciation.  I will borrow from @Brandon Turner’s advice: analyze a bunch of deals in various zip codes to figure what works for you.  Your flip area may or may not be the best long-term rental area.

Regarding realtors, I’d talk to @Robert Ellis and his team; they can really provide great market insight and possibly have wholesaler connections as well.

Good luck!

Mike German

I love the feedback this post has received!  Here’s more (restating what’s been shared a few times):

1. Buy Home Defense for $7.98 from Home Depot

2. Spray early spring every year  (all exterior home, yard and fence perimeter where spiders hang, window bottoms, entry ways, inside garage walls adjacent to house, basement windows, etc.) 

3. (Regarding annoying texts). Unless text is actual emergency, give it a 12- 24 hour cooling- off period.  Call tenant the next Day; in my experience, most communication challenges arise from our interpretation.  Simply being on the phone or in person will disarm most people.  Train them to be diligent and take control for things. (We had a tenant that complained about ants and left food out in kitchen 24/7; after a couple discussions, this has been resolved.)

4. If above doesn’t work, hire a PM, let them manage it and focus on finding new deals.

Hi Jason,

I work with a number of independent insurance agents throughout Ohio.  Unlike certain captive companies, they have many options to choose from.  Send me a PM and I’ll share a couple recommendations.

Thanks,

Mike German

Welcome to BP, Edward.  I’ve heard you can talk to various property managers and learn their target appetite.  They could steer you in the right sub-market and possibly connect you with a seasoned pro looking to unload a property.  Good luck!

Great stuff, @Bryan Blankenship!