All Forum Posts by: Priyanshu Adathakkar

If your sole consideration is the need or desire to self-manage your investment property, then buy locally.

The principle of substitution states that the upper limit of value tends to be set by the cost of acquiring an equally desirable substitute, assuming no untimely delays. A savvy investor will not pay more for an income-producing property than it would cost them to build or purchase a similar property. Likewise, a prudent tenant would not pay more rent than they would pay to rent an equally desirable property.

All properties, regardless of location or price, are substitutable, if the purchase price is the same as an investor you need to look at the income stream. The principle of substitution is closely related to the economic concept of opportunity cost, which holds that the true cost of an economic choice is measured by the opportunity foregone because of the choice.

I agree with Ronan Donnelly it depends on the type of business. My 2 cents, if you are new to the game, hire a professional!

Look at university districts and/or good school districts, one-bedrooms and studios are also good if they are in CBD.

Licensed Real Estate Agents will no longer be able to carry pocket/off-market listings. These will all have to be FSBO. The is due to the new MLS Rule from NAR - expected to go into place May 1st 2020

“Within one business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants. Public marketing includes, but is not limited to, flyers displayed in windows yard signs, digital marketing on public-facing websites, brokerage website displays, digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public.”

There may be a $2,000 fine imposed by the MLS on a brokerage or a member of a brokerage does not abide by this rule that is anticipated to be implemented on May 1, 2020.

@Aman Kaur What is the specific location of the property? When you say NNN, is it absolute net or just NNN? Under some NNN leases roof and parking lot are not covered, have you seen the lease or are you going by their OM? To your question whether the deal makes sense, it depends on the actual lease terms! Also, have you looked at the property? Even national tenants are known to ignore maintenance. There are a lot of other questions I would have if I was looking at that property for a client. What looks good on paper might be a trap in real life.

I have worked with clients who operate very successful co-working spaces, other than the location the most important factor for the success of such a business is parking. If you create 20 co-working spots, make sure they have enough parking spaces for your tenants and visitors. Also, be careful about who your tenant is. For example, if it is an independent recruiter, they will hog most of your resources. Have a business plan!

@Travis Evenson I do not see a problem here, as long as the rental income has a decent DCR and you have enough cash to cover downpayment and closing costs you should be good. I suggest looking at 1.2 DCR and have at least 30% cash on hand. If you have $30 in cash look at a property worth $100.

Hi Wei Cho, I deal with many out of state investors who love the Ohio market. My latest deal that is closing next week is a 40 unit multi-family in Worthington, Ohio for investors from South Florida and my last closing was in German Village for investors from Atlanta, GA. I know what is required for an out of state to buy here and would love to help. Thanks - Pri  

My advice SF a big NO, multifamily V real commercial, think about this:

Quality of tenants

Length of leases

Midnight calls V business hours for maintenance.

These are just a few things to consider.

BARE Investors has training on investing (http://bareinvestors.com) but unfortunately, we are based in Columbus, OH where all our training is held. Try meetup.com there will be groups on there in your area.