All Forum Posts by: Nathan Williams

@Ashley Hamilton what you have here is a once in a lifetime opportunity that you have jumped on. Things are great for you so be careful. If you stay free and clear you can not lose. If you start mortgaging your existing properties to buy more you can have problems when the economy softens. You have cash flow just keep reinvesting it and lay low on the loans. The biggest apartment owner in my city of Portland said never borrow on one to buy another. In other words keep your free and clear ones free and clear IMO.

@Amber Saulsbury It is not only about cap rate but appreciation too.

In my area it is 4-5, but appreciation grows like crazy, which means.

When you buy a multi 30 units for 5 million for example, that is C, renovate it, increase rent, add value and resell it after 2 years, you can resell it for 7-8 million, so BOOM you made another 2-3 million just for reselling.

When it comes to apartment buildings, yes it is nice to have a steady cashflow for 100k-200k a year, however, what would you rather?

Getting 200k yearly steady for 3 years or getting a 100k steady for 3 years and getting a 2-3 million when reselling it?

 Issue I suspect you are running into is poor performance. Thing is it's probably not the fault of your current property manager. You happen to have duplexes in two of the worst neighborhoods in all of Ohio. Most big firms (like mine) won't even take on properties in areas like this. 

In all actuality the only people that are able to etch out profits running properties in neighborhoods like Union Miles & MT Pleasant are locals who live right there and do all the work themselves, often unpermitted, under the radar & outside of the landlord tenant laws lol. Think water being turned off or front doors being removed when tenants don't pay rent. There just isn't enough income to support your business and pay the wages of someone else working for you, especially someone who's got to adhere to fair housing laws, rental standards and the like.