All Forum Posts by: Tunde Osilaja

Hi BP team --

Hope everyone is having a great start to your respective weeks. I wanted to get some perspective on a potential switch to MTR leasing. 

Does anyone have any experience with mixing MTR and LTR units within the same property? My property has shared spaces (back patio, laundry), so there is a little more interaction between tenants than something with no shared spaces. I'm considering converting one of my three units into an MTR with my 2 LTR tenants. 

I don't want to alienate my tenants (they are great), but the appeal of the extra cashflow is tempting. There'd be minimal furnishing costs, as I'd leave my current furniture in there (i'd move somewhere else furnished).

Given this, what are the cons I'm not thinking about? I want to make sure I take everything into consideration before I potentially plunge. Thanks!

 Hi Jaron, thanks chiming in with questions, would love to share my methodology!

I purchased this as a house hack, and wanted to find a building that needed little to no work, so I could gradually learn about being a landlord. On the other side of my purchase, I'm just a little under breaking even on the monthly cashflows (which is fine for now, as the rents will only increase from here). I'm also planning on holding to this for a while and building some equity overtime. I got pretty luck with buying this when I did; locked in the IR before all the various hikes over the past couple of months, so my monthly payment isn't too crazy.

My next property I'm looking to house hack (again), but this time conduct a rehab and turn (some) units into an MTR. Hoping I can capitalize on some forced appreciation, while simultaneously creating some good cash flows. (Anyone reading I'm open to critiques on that strategy)

 On with the steering!

Jonathan, thanks for chiming in. I definitely agree with that sentiment, and I think that'll be the route I take from here on out. Would love to chat and hear your perspective on rehabbing a house. Is there a best way to connect with you?

Hi All --

I'm a relatively new RE investor, and I'm evaluating different locations to build my potential RE portfolio. I live in Chicago, and I'm looking at various metro areas within the midwest to potentially plant some roots and start developing relationships (with PMs, Agents, Contractors, etc.)

My question is, what are the different variables I should look at when choosing the optimal location? So far I've come across the below metrics to evaluated, but what else should I be looking at?

- Rent Ratio, Occupancy Rate, Vacancy Rate,  Equity growth potential (more of a qualitative metric)

I take it return metrics are more property dependent, but are there any return metrics that can give me a good snapshot of a geographic area overall? Anyone have any Midwest metro areas they feel particularly strong/confident about? Any insights would be greatly appreciated!

@Crystal Smith, @Gloria N Gear, and @Corina Eufinger@Corina Eufinger@Corina Eufinger@Corina Eufinger

@Eliott Elias, @Drew Sygit (great context on OOS investing), @John Warren (great context on Chicago!), and @Paul De Luca, thank you all for chiming in. I'm continually impressed by the community here. Much appreciated!

@Aj Parikh thanks for the insights and the offer to reach out. I'll find some time through your calendly link to ask a couple questions. Thanks again.

That's a great explanation, @Anthony McEvoy. Thanks for the clarification.

Thanks @Anthony McEvoy -- makes total sense. With respect to scaling, my assumption is that a cheaper market means I could scale faster, but it sounds like that may not be the case? 

I took a look at this BP cashflow market analysis, and Detroit has a median house price of $63k versus Chicago which is about $329k. Are you saying that there is really no major cost advantage to investing in market's like Detroit versus markets like Chicago?

Hi there -- I'm a relatively new RE investor (just closed on my first property in May), and I'm researching locations to begin building my portfolio of RE properties. My two options are: (1) =Continuing to invest locally in Chicago; (2) Investing out of state.

(1) Chicago  

Pros: Closer to me

Cons: Costlier market

(2) Out of State

Pros: Can find cheaper real estate

Cons: harder to manage remotely

Anyone have any thoughts?