All Forum Posts by: Brad Clarizio

 True, I just think with enough due diligence, you can find B/C properties time and time again for that price range. If you buy a D property for 50k in Columbus, I think you got ripped off. 

You'll have a tough time finding any distressed properties in those areas, with the exception of Reynoldsburg. To John's point, the market in Columbus is so saturated, you'll be extremely hard pressed to find a fix and flip on the MLS, so you'll have to take alternative routes.

With all due respect, I think that's completely inaccurate. I just picked up a B property for $68k...

Hey Kyle,

We sound similar...also in Columbus and work for a corp retailer. I currently own 8 units, 7 of which are rentals and I have a short term (1-3 years) goal of doubling, so approximately 15 units. The final similarity is that I have also taken my RE courses but decided not to pursue it. 

What areas are you invested in Columbus right now and how are those properties doing? 

-Brad

Thanks David- the Columbus market still has a lot to offer (despite being as hot as it is). 

I received an update from the lender today- after closing costs and such, I should be able to walk away with 130k with a cash out. I've also decided to sell the "class A" property I referenced above which should leave me with another 45k. I am going to focus on getting 4 properties that pull in $750 a month gross. That will put me at my exact burnout rate. 

If anyone would like to take a look at my spreadsheet, I'd love to send it over for review. I used a 20% loss on gross (10% vacancy, 5% CapEx and 5% repair) on each house.

Thanks Dave...I'm definitely open to MF- right now I have 1 duplex and it truly is my highest flowing property. When I did the numbers, I realized how little I am making on my previous primary residence. It's a SF that has about 60k in equity, but after the vacancy, CapEx and repair number I used above, I'm only cash flowing $100 per month. If I sold that one, I could take 40-50k from the equity (I have to factor in the expense of selling) and buy a SFH with cash that would flow 300-400. The one I'm referencing is just so low maintenance...it's my best property in the nicest area (it'd be considered an "A" property by all accounts), but it simply isn't flowing as high as the others. Thoughts? Duplexes are common here but they aren't in the hottest areas.

Not yet, looking at potentially 2-3 50k properties "all-in" costs. I don't want to go too low because that brings additional headaches.

Also, I just did my burn rate calculation, estimating a 10% vacancy, 5% cap-ex and 5% repairs (remember, I always rehab all my places from the start) and I'm exactly $1,000 a month SHORT of where I need to be to cover my bills as they stand today. So, my goal is to add $1,500 in net income and I'd be comfortable. 

Thanks guys...I started the process today to pull approx 150k out of my houses to reinvest. The flips around here are minimal is Columbus is extremely hot, but it's a possibility. 

I'm thinking the 150k will create about a 2k a month expense (they'll be mortgages) and out of that I'm hoping to add 3-4k worth of rent. 

I want out of where I am within the next 6 months. Not sure I can even make it that long.

I'll definitely check out the podcasts. 

I met with the franchise owner on Friday and have decided it's not for me. I am all in on real estate, speaking to a bank at 11:30 today about a late equity loan against my properties. 

John Horner and I met Friday as well. He gave me the confidence that you can leave corporate and be successful. I'm well on my way. 

 Hey Amir...one of the reasons I haven't hired a property management company is because I don't want to be disconnected from my houses. Plus, I have invested so much in getting them up and running, including extensive rehab in almost all of them, they really don't require a lot of maintenance, so I have a hard time paying a PM company to collect rent and deal with the occasional issues.

I was able to purchase these so fast because I flipped 3 houses in Columbus in 2011 (the bottom of the RE market here) and cashed out and bought 3 rentals. I took the money from those and kept on going. I only have a mortgage on 3 of my 7.