All Forum Posts by: Slocomb Reed

@Tyler Frazier based on what you paid for these properties, you may not need to sell them to get your capital out and reinvest it. Assuming you're familiar with the BRRRR strategy (BP is, after all, where that term what created), you may be in a position to cashout refinance them or put equity lines on them to tap into the value you've added to the properties since you bought them.

Would you hold onto these properties if you could tap into their equity and keep them cashflowing? Or are you more interested in getting out of them and into something much bigger.

@Steve Keirn my house hack is a 2,000sqft 4-bed 2.5-bath recently renovated townhouse with two apartments attached that cover the mortgage. Only one kid right now, but my wife and I plan to live here until we have two kids and at least one of them is school-aged. I know of plenty of suburban duplexes where both sides are 3- and 4-bed townhomes with garages and finished basements, built in the '90s and '00s. House hacking isn't just for bootstrapping 20-somethings!

What investment strategies do appeal to you right now though? Could you be happy lending the money you've saved (home equity included if you want) to experienced investors for a return that way outpaces the stock market? Or are you loooking to get your hands dirty?

@Rich Somers a lot of us go back and forth in Cincy about whether or not to manage our coin laundry ourselves or hand it off to a third party vendor. I know of a couple places in town that will sell you used coin op machines that you manage yourself, and they'll also repair those machines (for a fee) when needed. My understanding is that Cincy Coin offers this as an alternative to having them manage the machines.

@Tayo Adanri what did you think of the REIAGC meeting? I haven't been to that one myself in a few years now.

@Kenneth Fung it's good that you're planning to visit while you're considering the market for investing. Cincinnati neighborhoods can vary a lot from one street to the next; I was just reviewing a single family deal that would've gone from an ARV of 80k to 115k if it were one street over. I've been an active investor here since 2013 and I still needed to drive that house to see the surroundings for myself.

I'd be happy to find a time to talk neighborhoods and referrals, PM me!

Honestly y'all, a landscape shift in the Cincinnati market could be very beneficial for those of us who hustle and adapt. It's easy to forget sometimes how emotional real estate investing can be (for ALL of us, but more so for some than others), and having City Council shake the tree may actually lead to more coconuts on the ground for savvy investors who are willing to figure out how to change with the times. 

I wouldn't be surprised if a lot of long-time investors take this as their cue to divest. Some non-local investors may do the same to get their money where they feel it's better protected. I've had a cold-call-driven lead generation model since 2018, I've spent enough time on the phone with rental owners; my gut is telling me that many of the less sophisticated and amateur investors will take this as a cue to step away from properties that haven't been all that profitable for them anyways (due to operator error).

Regardless, I'm still buying in Cincinnati. Take your talents to South Beach if you want, more opportunities for those of us who stay.

@Amber McCullough welcome to BP and soon to Cincinnati! Are your investing goals specifically flip-driven, for generating lots of income quickly? I have some apartments that I'll need to remodel soon, I could see that being a good niche for someone with your background in a market like Cincy.

@Joseph Cornwell great to see you putting your goals out there! It's been a year since I was really active in the forums too, I also need to get my butt back in gear to network and find more deals.

@Scott Sambrook conventional (Fannie/Freddie) underwriting standards only require 6 months' seasoning before a new appraisal can be used to determine the value of a property for refinance purposes, but in my experience most lenders still want to see 12 months of ownership before they'll play along with that. My recommendation is that you look for good reputable lenders in your area who only require what Fannie and Freddie require. Those also tend to be very good MLOs who do a boatload of loans.

@John Lenhart and @Evan Polaski make some very good points here. The City of Cincinnati is comprised of around 60% renters and VERY leftist local politics (at least our last two mayoral elections were between two Democrats), so it shouldn't surprise any local investors that City Council is doing what they think is beneficial for lifelong tenants.

It's very valuable to keep in mind that WE are the entrepreneurs in this equation. The original definition of "entrepreneur" is anyone who transfers assets from lower-yield investments to higher-yield investments. City Council isn't doing anything about the number of people who will need rental housing in Cincinnati, so if the investor demand for apartments within city limits goes down, cap rates will increase, and those of us who are good at what we do will figure out how to reap the benefits.

Now that I've said my grandiose and hopeful piece, a couple of nitpicks:

Is there anything stopping us from verifying a prospective tenant's assets as well as their income? As an agent who works with investors, I ask for proof of funds all the time. Can we ask for proof of reserves from tenant applicants?

Do we know yet whether or not landlords will be able to dictate which deposit insurance provider our tenants may use?

When does the law officially take effect? Will it have any impact on renewals of leases the predate the effective date of the legislation?