All Forum Posts by: Account Closed

@Markian Sich it should be rather straightforward as long as you have accurate numbers from the seller/broker. Just take the actual expenses (not forgetting to account for vacancy), subtract it from the actual gross income of rents, and value it from there on a return basis. 

As long as the numbers line up, the area shouldn't be as much of a concern. This is also assuming you have a reputable property management company who handles other buildings like this in the area. Have you investigated your options there?

@James Folsom That doesn't surprise me in the slightest. With the rise of the east side, it makes it harder for the SFH investor.

Let me know if you have any interest in the west side...the returns your looking for are easier to attain over there, and property prices are a little more reasonable than the east. I can even share some analysis on a couple of SFH in that area. Just PM if you're interested.

Best of luck,

- Troy

@James Folsom First, congratulations on taking the big step towards being a RE investor!

My father has owned SFHs in Cincinnati for 20 years, mostly on the west side of Cincinnati. One thing to be wary of is turnover costs. In single family homes, especially in the C- through B- category, your turnover costs for a large SFH is likely going to be more than a security deposit would cover, unless you're doing the lionshare of the work yourself.

Also, the city of Cincinnati is raising the cost of water/sewer by 7% or something crazy like that, so I'd be interested to see how that is going to effect rents.

I'm assuming this is an older home? Plaster walls, perhaps? Become a real pro at learner how to patch plaster because that stuff cracks and crumbles like none other in the SFH world.

Also, I know Norwood is slightly better than the western neighborhoods like Price Hill and Westwood, but your numbers seem low for a SFH. My father's SFHs, at around $70,000, would be a 10%-12% Cap Rate with 25%-30% CoC. I'd be curious to know what the standard is for the east side.

As far as the entity is concerned, the preferred method is to make an individual LLC for each property, but to your point, this can be a real hassle. What you outlined (having one entity and an umbrella policy) is what my father has done and it's worked well.

Hope this all helps! Feel free to reach out with any questions. If you have any interested in learning about SFH on the west side, let me know!

@Jennifer M. I think it has been said, but asking for copies of a current Rent Roll, as well as the leases currently in place is the best way to verify income on a property. When it comes to extra avenues of income such as parking or laundry, those are a little more difficult to verify with 100% accuracy. 

Regardless of what the leases and rent roll say, you should still check comps in the area, mainly to see if the current rents are under market and have room to creep up with minor improvements.

What types of investments properties are you looking for @Russell Pitts?

Are you seeking residential rentals? Retail/office? Multifamily (5+ units)?

Does anyone have a recommendation on a general handyman that's not wanting an exorbitant amount per hour (looking for someone willing to work for $15-$18/hr)

@Nik Patel Welcome to Bigger Pockets!

I'm a multifamily broker here in Chicago...let me know if you have any questions about the current city or suburban markets.

@Efrain Gonzalez Welcome to the forums. Please feel free to reach out with any questions you may have!

Hi all,

My father owns a portfolio of (mostly) single family homes in the Cincinnati area and is struggling to find reliable handymen. His most recent guy (who was a gem!) decided to get into real estate himself, leaving my dad without help once again. 

He can't afford to pay someone $20+ an hour for basic property work. His most recent handyman was working for $16/hr cash and did excellent work. Nothing crazy, just your basic punchlist after a property turns.

Does anyone have any recommendations?

Thanks in advance!

@Mark Hamblin you're most certainly welcome.