All Forum Posts by: Brandon Schlichter

Also we have a real estate investor's group that meets the 2nd Thursday of each month at OUC at 7pm, it's a great way to network with other investors and learn!

 Bingo... 

So what are the B class neighborhoods considered in Columbus? 

Largest I own are some 5 units. They're great money makers. If you that I see around here is one you start going to stick and larger units the noi % starts to decrease rapidly because you get into a point that you're competing with hedge funds. The small investors don't like small apartments in the large investors don't like them either at least that's what I attribute My Success to with the ones that I have.

I have not, just kept buying rentals overall. 

 Renting to drug dealers, not collecting timely rent, not evicting when things went south, never putting money back into the rentals.

Forgetting to pay mortgages for months on end leading to foreclosure. Not treating for bedbugs/roaches. Trying to DIY wiring, letting broken windows stay broke for 2yrs leading to pigeons setting up inside a historical property, bleeding your parent(s) dry while siphoning money out of a rental. 

 I think I'm going to sell a few of them the next time they become available, I'm not really comfortable selling something with somebody in it because that means they could kicked out.

Some of these places though that I've looked at have tripled in value since I purchase them which would certainly be nice to have since I have no undersupply of smoking hot rental deals.

As of today I'm at 96.3% of my tenants having paid for month, have the remaining 3.7% scheduled to pay this Friday, we will see I guess as I was talking about this 5m before you posted with a fellow landlord.

They're all deeded to LLCs, depending on the LLC i own a minimum of 40% to a maximum of 100% (I own 16 that are mine alone), one entity I own more than 80%.

I haven't cashout refinanced any of the investor owned properties where I own less than 80% , the ones i own 100% and the LLC I own 80%+ in doesn't require investor's to personally sign on any loan documents in order to cashout refinance because the bank(s) will take a personal guarantee from me. 

Not sure how kosher it is, but this is my actual spreadsheet with the first 17 rentals. Not sure where the 18th unit is coming from, but at this point I'm so spread out I miss numbers pretty often. (#18 might have included a flip I did, who knows).

Anyway, first investor ponied up right around $400k of money, which took me through most of this list, then I obtained a loan on properties #3 and #6 that allowed me to buy the last few on the list, putting my total cost at the $527k figure.

My actual gross income on the properties is $11290/mo | $135,480 less whatever vacancy is. I pay my maintenance guy $17.50/hr which math would say $17.50/hr * 40hrs = $36,400/yr  , however actual maintenance runs way, way under that. The 15% repair escrow that actually covers the R&M is much more accurate and maybe even a little high. I want to say we finished rehab on these properties around the end of 2015, having started with property #1 July 2013. So I paid out that $139,862 in rehab funds over a 2.5yr period, or around $55k/yr which would have covered my maintenance guy, material and a lackey to help him carry stuff.

Hopefully makes sense, I know taking real numbers on here is a rare sight, so I figured I'd share some information.

Having said this, my median rent is way, way lower on a per-unit basis over the last 73 rentals compared to the first 17 on the spreadsheet. Granted my ROI is much higher, it took quite some time for me to get my first quad, and since 2016 I've managed to get 3 5plexes, 3 quads, accounting for 27 units themselves.