All Forum Posts by: Patrick Drury

@Benjamin Ying

1. I would start by looking at the macro trends you mentioned then look at the markets that pop out and compare them side by side and see which best aligns with what your looking for 

2. If that market fits what you are looking for and it's closer then I would invest there, but if it doesn't fit what your looking for from a metric standpoint I wouldn't just invest there because a buddy does. 

3.Being able to get a direct flight helps, but I wouldn't make a decision on a market based on that

4. Yes. Having a PM out of state is important 

5. It depends on the area. If you are investing in an A location in Columbus for example it's not going to cashflow. It's a lot of owner-occupants and those areas usually have investors investing in them because they are stable with access to the best tenants. Those areas will eventually cashflow as you pay down debt but definitely not in year 1

@Melissa Stanley
Even if you set up an LLC with a partner there is no inherent tax savings by owning properties in an LLC. It's just a pass-through entity so the income would flow on to your personal and you would pay taxes based the tax bracket you fall in for you personal income (from my understanding). I am not an accountant or tax professional so I would recommend talking to your account about what that means and maybe some strategies on how to reduce your tax liability

@Fulati Paerhati
You can find deals across the Midwest in that price range. I would start by looking at Ohio. There is some solid markets here in Ohio like Columbus and Cleveland 

@Jennifer Gill
The only way to not get any calls about properties is to just sell them all and invest in stocks. It's part of the game. Depending on the county some provide public records of owners' name and numbers to the public thats are attached to the property so people can reach them

@Urvesh Patel
If you are looking in Columbus for MTR I would check out  - 43206, 43201/43202, and 43203

-43206: Nationwide Children's hospital 
-43201/43202: Wexner Medical Center, (This one is brand new) The Arthur G. James Cancer Hospital and Richard J. Solove Research Institute
-43203: Ohio East Hospital 

@Kyler Tarr
If you terminate this deal I would just keep in mind this issue will come up again if you are looking in cleveland. Across the Midwest markets, this will be a common trend. A lot of homes have knob and tube wiring and plaster walls and most were built in 1900-1940. Usually, when I buy stuff in cleveland I do not replace any electrical wiring 

@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