All Forum Posts by: Patrick Drury

@Jason Lopez
If you only have one rental or a few I would worry more about how to get more vs trying to put each one in an LLC. Frankly owning 30 properties in 30 different LLC's would be a migraine come tax time to get returns prepped. It's just going to cost you quite a bit of money to have your accountant prep all of them. It depends on how each rental is cash-flowing, but that could eat into your cash flow. There is quite a few forums that already discuss this topic, but buying 1-4 units in an LLC with a DSCR loan also comes with higher rates at the cost of using an LLC

@Shayan Sameer
In the Columbus market with a budget of 200k you can find something that hits the 1% rule. In terms of what areas I recommend areas like Hilltop, Linden, Eastmoor/ Whitehall, and Franklinton. These are areas where you can cash flow in Columbus because the rent-to-price ratio is favorable. Out of these areas, Franklinton and Linden are seeing some of the most developments. With things like the ONE Linden plan in Linden, which is a 50M plan to improve the neighborhood. Of that 50M, 25M was allocated for the construction of a new recreational faculty that has since been completed. Franklinton has been seeing lots of developments like the completion of Gravity Phase 1 and phases 2 and 3 on the way. As well as coffee shops like Bottoms Up Coffee are moving in and small microbreweries like brew dog and Land Grant.

@Charles Masten
If you are just jumping into the Columbus market I recommend areas like Hilltop, Linden, Eastmoor/ Whitehall, and Franklinton. These are areas where you can cash flow in Columbus because the rent-to-price ratio is favorable. Out of these areas, Franklinton and Linden are seeing some of the most developments. With things like the ONE Linden plan in Linden, which is a 50M plan to improve the neighborhood. Of that 50M, 25M was allocated for the construction of a new recreational faculty that has since been completed. Franklinton has been seeing lots of developments like the completion of Gravity Phase 1 and phases 2 and 3 on the way. As well as coffee shops like Bottoms Up Coffee are moving in and small microbreweries like brew dog and Land Grant.

@Bryce Jamison
Everything I own is built in the 1900-1940 range. I think it really comes down to risk tolerance. At the end of the day for a new build your just paying for peace of mind. The older homes do quite well for me. I think a lot of investors are just scared of them because they don't understand them. As @Bruce Woodruff mentioned it just comes down to the numbers. What is the price, how much work does it need, what will the rents be, and what is the ARV

@Charlie Green
No one is going to have an exact checklist down to 1k for rehab to estimate how much it will cost because no two properties are the same. You need to get this from experience doing things. For example - maybe the average checklist has $1,000-$1,500 to update electrical panels, but that doesn't take into account updating the main feed from 60 amps to 100 amps which is something you may not even know needs to be done. Maybe the average roof is 7-10k, but this house is larger then the average one or maybe it's even a flat rubber roof which will cost more than a normal asphalt shingle roof. These are not exact price points, but I am trying to highlight that unless you are a contractor or have experience buying rentals in that market you aren't going to be able to pinpoint the rehab with a checklist down to 1k

@Jemini Leckie
If investing locally is not in the cards I would do some research and pin point a market that fits what you are looking for and then reach out in the forums for that specific market and ask more detailed questions. Try to lock in on one market and learn it. Sometimes new investors try and look in 5 markets at once which is like drinking from a fire hydrant and results in nothing happening because they get overwhelmed.

@Gamal Harding
Very exciting news for Columbus! 

@Noam Elgavi
You have a lot of options with a budget of 200k for a duplex. I would recommend being in areas on the West Side of Cleveland like West Blvd, Cudell, Old Brooklyn, Clark Fulton, Edgewater, Jefferson, and Brooklyn Centre. The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.

@Kyle Deboer
Get a job and save up till you can buy the first one. Not what you want to hear but it's the truth. While you save up work on building up your credit history with a credit card. I got the Discover It Secured card in high school and used that to build up my credit. Check out YouTube for some videos about that card. It's a good secure credit card for a beginner. 

@Isaac Terry
In terms of it being worthwhile, just like most other markets out of state if the barrier or entry is too high where you live, the landlord laws are not favorable where you live, and you are looking for positive cashflow then Cleveland can be a good option. As other people mentioned the areas do change pretty quickly. I would recommend being in areas on the West Side of Cleveland like West Blvd, Cudell, Old Brooklyn, Clark Fulton, Edgewater, Jefferson, and Brooklyn Centre. The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.