All Forum Posts by: Alex Brookbank

@Joe Fairless great show ... cincy!!

@Karen L.

Single family or multi family? For Multi Family, I would largely agree with @Jake Walroth

Single family would add different neighborhoods, perhaps an area like Loveland

@Kevin Girouard Cincinnati along the 71 corridor + Covington, KY, is where I would start researching. 

@Korey VandenHeuvel you can tap your retirement but that's a very personal and controversial decision 

@Malik Berry

We are in wealth building mode, not managing assets mode, so it's always going to be a job, to at least some degree. If you're not paying attention, whatever you have started building could very well collapse w/o your attention.

"I had no clue where to get closing papers" ..... use a real estate agent. As a buyer, this does not cost you any $$$. You could do a live-in flip with a single family residence ... and learn to do some of the work yourself, and/or outsource the rest to a contractor. The benefit of an owner-occupied loan is that you can get into real estate with a low amount of cash.

It's hard to buy and flip a house or turn a rental property into a little cashflow gold mine ... so many variables and layers to think through and understand. Well.... I should clarify that is hard to accomplish a return that is better than the average. Really, it comes down to your willingness to grind it out, confidence, and taking the time to become smarter.

@Account Closed is a virtual assistant even necessary? If it's not a great fit it would just be another layer of BS, no ???

@James Denon

Property management companies in my city seemed ... rude and not a fair partnership (for me). 10% gross rent fee, plus 1 full month commission, plus hidden fees, plus ridiculous 'escrow' requirements for each unit, plus a REQUIREMENT that you do a 1 year lease every time. I always roll into a MTM after the 1 year. This reduces turnover. The 1 month full commission does not incentivize the property management company to keep turnover low. You should be able to find a professional property manager willing to negotiate somewhat , like 7% gross rent plus 75% 1 month commission, or 10% gross commission with no leasing commission. I do the 10% fee and no leasing commission structure, but I also do my own bookkeeping, help with marketing and brainstorming, and manage/pay the lawn service guy. So it's a give and take.

You want to trust them and their decision-making abilities. While guiding them and relying on them as well - never be completely dependent. Make sure rent collection is structured so that they don't have complete control over your revenue.  

There's always going to be an issue... They will never be satisfied. Fix what is appropriate and say no to what is not. i have had a tenant like this .... can become very irritating. Some people will adjust their behavior based on your fair decisions ... other people not so much. 

Keep managing the relationship until the end of lease. Good chance they will ask to break the lease if you don't cater to their every whim. (That may not be a horrible idea)

@Todd Kalsey I had a feeling you were referring to the Oakley area in your first post. I saw you mention it specifically in a follow up comment. I don't think there is going to be any problem with holding up rents. That area is indeed pretty hot, and saturated.

Oakley's young professionals are spilling over into Norwood and P Ridge. I'd be more worried about buying at the top of Oakley's recent cycle (although it will probably keep going up for the next decade, who knows). I'd guess rents will remain strong. Oakley is anchored by Hyde Park and Rookwood, it is a very safe investment at this point. It's crossed the threshold into "A" territory in my view. Granted there are pockets that need gentrification still, but it seems like a foregone conclusion.

On a side note, the Kroger development and surrounding plaza is ..... ugly. But Mad Tree is going in, so I guess it is bittersweet. 

@Pete Tam @Wendell De Guzman Over an extended period of time, Cincinnati's population has definitely declined. But more recently, the population decline has been relatively flat. 

In terms of appreciation as a market, the big picture long term .... probably isn't very strong (Cincinnati is not a warm, southern city), but in isolated parts and strong neighborhoods normal market appreciation will still be there. Hyde Park is a really good example. The Mt. Lookout and Columbia Tusculum neighborhoods around Hyde Park are now permanently "A" zones, and Oakley is very close to being the next permanent "A" 'hood. And these areas aren't even supported by strong public schools ... it's strong private schools.

And from a cashflow perspective, opportunities are definitely available in typical working class areas BUT ALSO on the edges of the A neighborhoods, where you can attract strong tenants / young professionals.