All Forum Posts by: Nicholas Misch

 Thank you for the question! I currently live in California and have been researching and looking in my area. My current goal is to find properties that cash flow. That is difficult in my area with current prices. My wife has some family in canton and Youngstown so I started researching there. Both of those areas seem to have inventory with potential for cash flow. It also appears that Ohio is a much more landlord friendly state. I believe that the capital I have saved up would go a longer way in Ohio and would give me a little more room for errors that I might make on my first deal. Thanks again for the question!

Hello everyone!

I'm currently 25 working full time as a pilot with a lot of flexibility to move around the country. I'm looking to BRRRR for my first deal but don't have a lot of capital to do it (sub 100k). Does anyone have a market they love where a cash buy/rehab can be accomplished sub 100k without a lot of headache from tenants afterwards (class B areas and above?). I feel it would be impossible to do this where I currently live in California. I was looking into Memphis TN/Evansville Indiana as possibilities. Atlanta also looks appealing for being close to work.

I'm currently reading through David Greene's BRRRR book and its awesome!

Thank you!

Hello all, 

I am a new investor currently looking to invest remotely in the Canton, Ohio area. I am looking to build a team and connect with property managers and realtors in the area. Any info and advice would be greatly appreciated. Thanks all!

 I'm not big on number crunching. I started out using the Biggerpockets calculator. After a few deals, I realized the numbers weren't that important to me. I switched to a napkin analysis and it works fine.

I start with total income. I divide that by half. I subtract mortgage and interest. Anything left over is my cash flow. 

Example:

Property for $400,000 with 20% down, amortized for 30 years at 5% interest

Total income $3,600

50% of income = $1,800

Mortgage is $1718

That only leaves $80 cash flow, which isn't worth it. However, I'm a property manager in this area and know the rents were at least $100 low on each unit. I can manage them myself, saving 10% every month. I already have a healthy reserve and strong income, so I don't need to set aside as much for capex. Long story short, I've owned it for three years and my cashflow is nearly $200 per unit and it's gained at least 50% in appreciation.

Crunching numbers won't give you the whole picture. You have to consider your market, potential improvements, what you bring to the game, etc. I'm able to evaluate on a napkin because I know my market and my situation. If I used the same technique to buy a C-class property in Cleveland, I would probably lose my shorts because I don't know the market, they may have heavier turnover, I have to pay a manager, etc.

Hi everyone! Newbie investor here living in LA looking to invest out of state. As a newbie out of state investor would you guys recommend I work with a turnkey company? If so, any suggestions on how to find a vetted one in the area (thinking Cleveland, Columbus, Birmingham)? Is just working with a local investor real estate agent and management company a pretty safe bet too? I am just starting out in the out of state arena so don't want to bite off something I can't handle and/or run into too many blindspots. Thanks for everyone's advise and expertise : )

If the property is in Cleveland, sure to ask the property owner if the house is clear of all city inspection violations. 

Ask for the latest city inspection report on the property.

Thanks Jack! Ever think about Baltimore? Canton is a great neighborhood and I want to move there, but cant understand why it cap. accum. is so slow. Baltimore is a great city and has a number of big companies based out of there.

Another question if you dont mind. Do you every look at markets like Indianapolis IN, or Akron OH? The prices look soooo appetizing and it appears that cash flow works, even with a property manager.

 They need to be high traffic areas in "trendy" parts of the city, or the alternative is what this forum is discussing being near Cleveland Clinic where travel nurses can be a large part of your tenant base. So the likes of University Circle, Ohio City, Tremont, Edgewater, and some parts of Lakewood are a good starting base.