All Forum Posts by: Ryan Pyle

I am a multifamily owner in Toledo. I and most other MF owners in Toledo had a record year in 2020. As Mike pointed out above, there was little effect from the moratorium here. Also, very few people moved during COVID, so vacancy and turnover costs were very low. Now, vacancy is around 1% and rents are way up. It's a great time to own MF in Toledo. 

Best post I've read in a long time. I've lived this...everything OP says is absolutely true. There's a reason the house costs less than a car. 

I've been raising rents here in Toledo. Flyover country is doing just fine.

@Natelya G. I used to worry about the same thing. Just pretend you are a tenant and do a rent survey and see what their alternatives are. If you raise the rent to $1500 and everything else is $1500, they won't move. Moving is expensive and a huge pain. Tenants don't take moving lightly. It's a big decision. One other thing...I don't raise rents. I offer renewal options. I give them a notice that offers a 12 month renewal at the going market rent, a 6 month renewal at a $40 premium, and a month-to-month option at an $80 premium. The fourth option is to give their 30 day notice. This takes the conversation away from the rent raise and makes them think more about which option they want. It works very well. I have been very surprised over the years at how many tenants take the 6 month and month-to-month options and still never move. I have tenants that have been renewing their 6 month leases (at the new going rate plus the premium) every 6 months for years.

I am also in Toledo. I don't use a standard %, I do a rent survey and raise the rents to market. With that said, it seems to be typically landing around 6%. 

I was going to respond but Andrew summed it up perfectly. So...what he said.

@Cat Whipple Mike's advice above is excellent. It's important to know that S8 is not responsible for the tenant. They simply pay a portion (or sometimes all) of the rent. In order for S8 to be able to pay the rent they need to be assured that the property meets HUD's Housing Quality Standards, and they inspect the property annually to make sure that it does meet the standards. If you take on S8, it is very important that you have a handyperson available to attend all inspections and become very familiar with both the standards and the inspectors. Despite what the housing authority will tell you, every inspector is different and they all seem to have their hot button items. Once you know what they want, the inspections become easier and easier. At first they will likely seem daunting and even silly, as they will ask for some crazy minutia. I have found it best to just go along with what they want and realize that the annual inspections are the premium you are paying for the S8 insurance. If you don't like the inspections they can drive you nuts. I've gone both ways with them but in the long run have found that for lower end properties having the S8 backstop is invaluable for vulnerable populations who don't have steady jobs, credit, or a financial support network available to them.

Sorry for the ramble. Best of luck!

Could you just find one that's already fixed up for $41000? Then you would save the headache and risk of rehab. I speak from experience. I've done loads of rental rehab where costs exceeded expectation and I look back and realize that I could have just bought a house already fixed up and been better off.

Looks fine. I own one very similar to this at 1845 Newport St. Rent is $875, tenant pays water. These are simple because they don't have basements, which makes maintenance much easier. The 50% rule is accurate here if you are self-managing. If you will hire PM, you will need to add that on top. 

Two things to look for:

1. Does it need flood insurance? There are lots of little drainage streams flowing through WLS. They often result in a flood insurance requirement.

2. What is the current tax value? WLS is pretty aggressive about raising tax values after a purchase. You should adjust your property taxes accordingly. I just had to pay an extra $6,000 this month in property tax because of this very issue. Last year it was $14,000. These #'s are for apartment complexes...don't worry, a house won't be that bad! :)

I'm concerned that the lawsuit may have opened a can of worms. That was my primary reason for not financially supporting it. Sometimes it's best to leave well enough alone. Sorry Andrew, I hope I'm wrong.