All Forum Posts by: Phillip Dakhnovets

Looks like on top of great deals, Toledo also has an outstanding real estate community. LOVE IT!

Thanks @Arn Cenedella and @Greg Scott for your input! Absolutely agree with your thinking. Indicators such as population growth, improving schools, and jobs are key in successful real estate investment business. In other words, areas where the demand is about to ramp up and supply is still low. Market data research and boots on the ground are the unbeatable tools to find these areas and invest heavily there.

Hello my friends,

I recently came across a BiggerPockets podcast about Cashflow vs. Appreciation, and this quote by David Greene really stood out:

"Everyone I have ever talked to has always said: Location, Location, Location... buy in the right area, with the right schools... the appreciation you get will trump any bit of cashflow that you thought was important, and you won't have the headaches."

I have experience with both and can definitely say that cashflow is nice in the beginning because it gives you freedom, but appreciation is what makes you wealthy. Appreciation is a bit riskier since it depends on factors we can't always control, such as school levies passing, business success, crime reduction, etc.

In my opinion, it’s hard as a newbie to jump into appreciation properties, as they require a lot more initial capital to acquire. Plus, it’s easier to learn and perfect your processes on cashflow properties because they provide an income cushion for any mistakes you might make.

Looking at the Greater Toledo market, there are obvious cashflow areas, but what about the appreciation spots? If you were to invest $100K+ of your own money into one property, where would you go?

Thank you for all the great replies,

Phillip Dakhnovets
Guardian Property Management & Maintenance

I like your creative strategy here to make the deal work. Does the $400k cash investment include the down payment? What did you do with the utilities—did the city allow you to split them?

Overall, this is a popular strategy in the Midwest for converting large old homes into multifamily units. It's great for diversification and cash flow!

Hi friends,

Has anyone completed a successful seller-financed residential deal in Toledo? If so, could you share how you approached the deal and introduced the seller financing option?

Watching Pace Morby's YouTube videos, the concept is clear, but in reality, sellers are very hesitant to even discuss this option.

Thanks in advance,

Phillip Dakhnovets
Guardian Property Management
419-740-0370

Hi Nicholas,

In my opinion, you are on the path to discovering the BRRRR strategy. The most popular way to speed up your real estate growth is to buy fixer-uppers, rehab them with mostly sweat equity, rent them out for significantly more than 1% of your total purchase price per month, and then refinance the property to extract as much money as possible for your next down payment.

It’s doable, but you need to find the worst property on the nicest block, as this will play a significant role in your refinance discussions later.

Let me know if you would like to chat more and learn about the Toledo market, which is well-suited for what you are looking to do.

Best regards,
Phillip Dakhnovets
Guardian Property Management
419-740-0370

Hi Eric,

In my opinion, it's a double-edged sword. If you are managing the property yourself, then yes, meeting the tenants is crucial, as a credit score and background check can only say so much about a person. Obviously, if they have a credit score above 800 and a clean background check, I would tend to trust them more.

On the other hand, if you have a property management company, meeting the tenants in person means they have your contact information and may call or text you before contacting the property management company.

All best, 

Phillip

Thanks for the reply Engelo, and great to connect with you virtually. Hope to see you areoun real estate circles :) I absolutely agree with maintenance upcharge. Why do you think the 10% monthly fee only is not enough for property managers to survive? Is it the overhead cost? 

Thanks

Hello friends,

What have been your biggest challenges with property managers in the area?

I have found that getting help with grass cutting or AC filter changes from property managers is hard to come by. Additionally, for major repairs, such as roof replacement, I have to find vendors and manage the project myself.

I would like to hear your thoughts and whether you have found a property manager who handles such requests.

Thank you for your input in advance,

Phillip Dakhnovets
Guardian Property Management & Maintenance
419-740-0370