All Forum Posts by: Account Closed

@David Rutledge My father actually has owned multiple properties in Hamilton, OH and they've turned out to be his better investments from an appreciation standpoint, as well as a cash flow standpoint. Butler county is much more landlord friendly than Hamilton County, and the city of Hamilton has been making many strides to improve the community and bring jobs to the area. I wouldn't shy away, but definitely find someone local to guide you through the good parts and the bad. Like every city, it has both.

Troy

@Sam Denny what size deals are you looking for? We have a number of deals the SW Cook County suburbs.

@Nicholas J. I ran I quick cash flow analysis that we sometimes use when doing a quick 'back-of-the-napkin' for clients. I sent it to your via message. Assuming you're going to manage the property yourself, it's not a bad starter deal depending on how the area is. Is there any room to raise rents? If so, a value-add play on current numbers could certainly be the way to go.

@James Weller my father owns several properties in the Price Hill, Westwood, and Cheviot areas. While there are some pockets that are worst than others, his most recent tenants have been substantially better than what he was seeing a few years ago. He's been able to push rents up, as well as have a better selection of interested parties. He's also been able to avoid Section 8 tenants on all of his properties except for two, and both of those two have older single women living in them that are no hassle at all. Let me know if you'd like to discuss the area more. 

We usually see closings on that size deal last no longer than 45-60 days. You may be able to get away with 90 if the seller is 1. inexperienced 2. desperate or 3. you were the highest offer by a considerable amount. This is generally speaking...every deal is different.

@Kendra L Lee my advice: don't. 

Englewood, and much of the immediately south/west side is a dangerous place. Most of our outside investors are putting money in the north side of the city, as well as some surrounding suburbs. I spoke with an investor yesterday from Texas who as properties in Mount Prospect, Arlington Heights, Palatine, and Vernon Hills. 

Bottom line, stay far away from those south side neighborhoods.

@Geoffrey Schaeffer this sounds like a major red flag. I'd stick with the contractual obligations and nothing more. If he backs out you can either sue for performance or move on to the next deal. Either way, I wouldn't give into those kinds of terms.

@Brandon Yee Congrats on your purchase! We know the Homewood area well...just put a 48 unit building in Summit on the market. Perhaps our paths will cross someday as you continue to grow your portfolio!

@William Chrisman I would want to know:

1. What is the unit mix?

2. Current rent roll?

3. Taxes?

4. Other expenses i.e. gas, electric, water, insurance, etc.

5. Any deferred maintenance? Condition of the roof? Boiler (if there is one)? 

6. How long has it been on the market?

This should get you started in the right direction. If you were to put it under contract you'd surely need to have an inspection done.

@James Masotti To answer your question, our underwriting consists of the following categories:

Taxes

Insurance

Gas

Electric

Water & Sewer

Scavenger

Management & Janitorial

Repairs/Maintenance

Misc & Reserves

Sometimes we add in a few expense items, especially on bigger deals, but this is the gist of it. As far as capex goes...that's generally not something you're going to see explicit pro-formas for...it's usually accounted for in reserves, which in our market stays around $300/unit/year. 

Again, it varies by market. You seem to know this market best...go with your gut.