All Forum Posts by: Terry Dunlap

@Alexander Felice, I have submitted offers on other properties. So I am not wedded to this one! ;-)

 I asked for pics and vids! We'll see if he produces.

I recently bought a SFR from this company that also is managing the property for me. They know I'm an out-of-state investor. However, I grew up in the area and we know many of the same people.

I asked for his help in looking into some SFR on my radar. A text over the weekend said he's working on a 6-unit deal "exclusively" for me. He would contact me with details. Here are those details from his email

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Terry,

This is the one I was talking about that has been all redone. Just a money maker

 415 Huron Avenue #1 Rent $525 monthly Security deposit $525; unoccupied

415 Huron Avenue #2 Rent $450 monthly Security deposit $450; occupied

415 Huron Avenue #3 Rent $400 monthly Security deposit $400; occupied

415 Huron Avenue #4 Rent $500 monthly Security deposit $500; occupied

417 Huron Avenue #5 Rent $595 monthly Security deposit $595; occupied

417 Huron Avenue #6 Rent $500 monthly Security deposit $500; occupied

Unit #5 completely redone on the inside, units 4& 6 completely torn off and redone inside and out, new roof, new walls, new floors new cabinets. New and updated furnace and water heater. New roof entire building. New water line to the building. New gas line and meter to the building. New driveway next to building. Storage shed. Tenant in unit #3 cuts grass in summer, shovels snow in winter and rakes leaves in the fall. Also puts the trash to the curb every week and back after trash is picked up. For a reduced rent of $50. Potential income of $2970 per month less expenses. I am working on getting you the expense report. This is to good to pass by for only $149,900.00 with annual income over $35,000 it pays for itself in less than 5 years. This is the one!

Scott

Full disclosure: My Dad owns it. I told him sell it and pay off his house so Mom does not have to move if something happens to him. He agreed. It is not listed.

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A few things I need to mention:

• I can only find one of the properties on the county website (I asked about this... awaiting reply)
• The one I could find was bought by him and his brothers at a Sheriff's Sale then a quitclaim deed to his dad
• I have no pictures other than Google Maps
• I have no financials... yet so I cannot use the tools here to analyze this investment

I may need to find another local realtor to help me run comps as I wouldn't fully trust anything he sends me since he's so deeply intwined.

Am I being paranoid?

Thanks,
Terry

@Lamont Marable it's on the shores of Lake Erie, home of the Cedar Point Amusement Park. https://www.cedarpoint.com/

Thanks @Jake S.!

Location is decent. Not a slumlord-type area. My agent is actually booking a time to head over there and do a walk-thru for me since this is an out-of-state opportunity.

Yeah, I figured going with my PM's experience is the better number to plug into the calculator.

And roger that on the income/expense growth rate!

Hi all! This is my first real opportunity since joining to use the calculator to assist in analyzing a deal.

Property is listed for $69,900. But agent feels between $52,500 - $55,000 is more appropriate based on recent sales in the neighborhood. Property disclosure form indicated "dampness around basement walls during heavy rains." My first property had this issue. It took $10K to fix it. So I assumed the same $10K CapEx here as well.

This is a long-term buy & hold property (5+ years) looking to generate positive cash flow and deductions for tax purposes (accountant says we need more deductions).

Rentometer claims around $825-$850 is a decent rent. Property manager thinks $750 might be the max. Not sure where Rentometer pulls its rental info, but property manager thought it looked inflated.

According to Trulia, the area has seen a steady 3% annual growth in property values. Property manager has been able to obtain between 4%-6% annual rent increases.

So... what do you think?

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Investment Info:

Single-family residence buy & hold investment in Huron.

Purchase price: $165,000
Cash invested: $165,000

Mom and dad didn't have a lot saved for retirement, so I bought their house and I actively invest the money for them. I don't actually charge them "rent" because I gift them $15,000/yr in which they use to "pay" rent. This allows me to write-off all the improvements to the house. The goal is to break-even or show a loss each year for tax purposes.

What made you interested in investing in this type of deal?

I think the description says it all.

How did you find this deal and how did you negotiate it?

Mom and dad questioned how they would survive in retirement, we sat down, we ran the numbers, we did the deal.

How did you finance this deal?

Paid cash.

What was the outcome?

Mom and dad stay in their house, and they now have enough investments to enjoy retirement.

Hi Matt.

A few reasons: (1) it was my first Airbnb/VRBO and didn't know what the cash flow would look like on a seasonal rental, (2) cash allowed me to negotiate a lower price and close more quickly, and (3) I hate debt. :-)

Hi Jason,

Yes, I'm interested in connecting with more agents in the Sandusky/Erie County area!

Back when I was 16 years old, I had a business called Travel Aid for Cedar Point visitors in which I provided detailed instructions on how to bypass the main entrance and use alternative routes, which included the chaussee! :-)

Investment Info:

Single-family residence buy & hold investment in Huron.

Purchase price: $143,500
Cash invested: $143,500

Purchased in Short-term rental via VRBO & Airbnb during Cedar Point season.

What made you interested in investing in this type of deal?

As a Sandusky-native, I knew first-hand the attraction of Cedar Point and how overpriced hotels can be. And since this house is in a quiet neighborhood near the lake, it was a no-brainer decision to buy for the purpose of renting short-term via VRBO and Airbnb.

How did you find this deal and how did you negotiate it?

Agent. Once the inspection reports were in, we negotiated based on the costs necessary to fix it properly.

How did you finance this deal?

All cash.

What was the outcome?

So far, so good! It's making money. And it's a place for me and my wife to stay during the holidays when we visit family in the area.

Lessons learned? Challenges?

Biggest challenge is working with guests while I live in another state (Maryland) and the property is in Ohio. Finding a reliable housekeeper was an initial challenge but that has been solved for now.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jamie King, Hoty Enterprises (https://www.realtor.com/realestateagents/jamie-king_sandusky_oh_460225_194999733)