All Forum Posts by: Carlo Seta

My only issue was it seemed like a lot of the applicants had credit issues.

I see you are in Batavia. Small world.

The building I own is in price hill. I have 2 musicians and a guy that does computer recycling. 
I had a bunch of people apply that wanted to do woodworking and auto repair. I wanted to keep it low key because dealing with the city of Cincinnati zoning is a nightmare. I didn’t go any occupancy applications and I’m not sure if I was required to do so. I have learned not to ask:)

Monthly. 500 per space. I payed about 60k for the building 20 years ago.

How long have you been at this? I wonder if all the free Gov money may be driving this. 

I recently split a building I own into 3 separate spaces.  (about 800 SF each) I listed it on Facebook and in a few hours I had about 60 people contact me. I rented all 3 spaces in 1 day.

This was so easy I’m thinking about buying a few more buildings.

Has anyone else had this kind of experience? Is this normal demand for this type of space?

OK. I'm brand new to this. I found this property. It is a few miles from a very good area.
This property is in great shape. It sold for 120K about 5 years ago. I think I can get it for around 53K. I have the cash to buy it outright but some have recomended to get a mortgage anyway. Does the price fall in line with what you would expect for a forclosure?

Would you do the deal?

Here is how the numbers look:
POTENTIAL RENTAL INCOME $14,400 Total Potential Income if rented 100%
Less: Vacancy $(450) Assumed 2% Vacancy Factor
EFFECTIVE RENTAL INCOME $13,950

GROSS OPERATING INCOME $13,950 Total Revenue

OPERATING EXPENSES
Real Estate Taxes $2,500 Property Taxes
Property Insurance $700
Repairs and Maintenance $500
Utilities $150
Lawn and Grounds Keeping $300
Miscellaneous $300


TOTAL OPERATING EXPENSES $4,550 Sum of Line 6 thru 23
NET OPERATING INCOME $9,400
Less: Annual Debt Service $(2,864) Total Mortgage Payments
CASH FLOW BEFORE TAXES $6,536
Add Back: Principal Payments $864 Principal Paid on Loan
- Depreciation $(3,818) Tax Depreciation on Building
TAXABLE NET INCOME (LOSS) $3,582

I'm 45 and have owned my own business for about 15 year. My current business is kind of on autopilot and I'm bored with it.

I have been kicking around the idea of investing in rental real estate for years but have never made the plunge.

My question is Should I do it?

I have seen friends try it and fail while others have done well.

I'm sure that like any business hard work and experience make the difference. I can do the hard work. You guys have the experience.

My goal is to net around 5K per month. What kind of effort will that take?

There are 3 major colleges near my so I'm thinking about going after one of these markets? Any advice on College rentals vs families?

I have the cash to buy a few properties now. I see all kinds of stuff going to auction. Any thoughts on buying at Auction?

Is the any recommended reading?

How much time do you currently spend on your businesses? What are the major pitfalls and problems.

Thanks for your help in advance. I know you are all very busy.

I look forward to your reply.