Just bought a 18 unit for $12,581.36 in Ohio

Multi-Family and Apartment Investing
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Just bought a 18 unit for $12,581.36 in Ohio

Omar Merced
Real Estate Investor · Las Vegas, NV · Member since 2016 · 399 posts · 260 votes

Well sort of. I have to pay back taxes of $20k and about $1k in back water. And, yes it needs a full rehab but if I did my numbers right after all is said and done I'll be sitting pretty. I close this week so once I do I thought I would keep a this updated regarding the experience including all numbers so the BP community can benefit from my experience. Let me know your questions!

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Jean BolgerPro Member
Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
10y

No need for onsite management in Ohio, so don't worry about that. I bought a 29 unit in Columbus that was 50% vacant and in a C neighborhood. It's taken 2.5 years but it's starting to do pretty well-- however I certainly did NOT have the experience necessary going in, lol.

I agree that the prospects hinge pretty heavily on the city and neighborhood, but at that price it's probably worth a shot either way and I like the bold approach. I'll look forward to hearing more as the story progresses!

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  • Brent Coombs
    Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    10y
    Originally posted by @Nick Thomas:

    Depending how much this rehab costs it seems you'll be making a huge amount of cash flow if you're able to rent out all 8 units. Any pics or estimates on rehab price?

    Yeah, even more when you remember it's 18 units, not 8! Ha!

    0Reply
  • Jared Delaney
    Investor · Brooklyn, NY · Member since 2016 · 38 posts · 6 votes
    10y
    Omar Merced congrats and that's the idea that I don't think people see enough. You are buying to change the community and that's where the profit is. Anyone from NYC will tell you that. I don't think anyone can name a class D neighborhood in Brooklyn anymore. Market and build the area is the bigger picture. Once again congrats and keep us updated!!!
    2Reply
  • David Panzera
    Real Estate Broker · Columbus, OH · Member since 2015 · 205 posts · 62 votes
    10y

    Omar

    Sounds great.  

    0Reply
  • Matthew A.
    New Haven, CT · Member since 2016 · 90 posts · 99 votes
    10y

    @Omar 

    @Omar Merced

    what if you hired a $10 or $12/hr security guard to sit outside in a booth/building?

    Build a fence around the parking lot?

    Might cost you $2,000 a month, but increase rent by $100 because of that added value.

    Just a thought.

    Not sure that makes sense, even possible or all of the above. 

    -Matt

    2Reply
  • Stone Teran
    Investor · Cincinnati, OH · Member since 2015 · 374 posts · 120 votes
    10y

    Congrats on the purchase.  I assume you're aware it's been declared a nuisance by Dayton.  Act fast before they turn it into rubble.

    0Reply
  • Katherine Earle
    Santa Rosa, CA · Member since 2016 · 53 posts · 17 votes
    10y

    I love that thought of making a real difference in a bad neighborhood! I am new to the game and looking out-of-state for my first deals. I can't imagine trying to build a community unless I can live near it, but I may find myself moving out of California once I start flipping my first few properties. Good luck and I look forward to seeing your updates!

    1Reply
  • Omar Merced
    OP
    Real Estate Investor · Las Vegas, NV · Member since 2016 · 399 posts · 260 votes
    10y

    @Jared Delaney Thx. Definitely nothing like NYC, what cash flow is cash flow. This is definitely high on the risk Spectrum but as you know those are the ones that have the highest reward.

    @Matthew A. It is almost impossible, almost. The only thing that changes neighborhoods, in my opinion, is money. Once the surrounding owners see the rents and home values go up it is the number one driving force behind any neighborhood change. This one is not that bad. It just needs some love.

    Remember to follow this forum so you can get updates. I'll be posting all cost directly associated with this property from travel to LLC formation etc.

    0Reply
  • Wendell De Guzman
    Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Omar Merced:

    Well sort of. I have to pay back taxes of $20k and about $1k in back water. And, yes it needs a full rehab but if I did my numbers right after all is said and done I'll be sitting pretty. I close this week so once I do I thought I would keep a this updated regarding the experience including all numbers so the BP community can benefit from my experience. Let me know your questions!

     Great! Which part of Ohio is this? I hope you did not buy this in a war zone (what I call "F" area). If you did, even if it's "cheap", it could still be an expensive acquisition. My building in a "war zone" experience was an expensive lesson for me. 

    I thought the building was so cheap there was no way I could lose money on it. 

    Also, I'm an engineer by background so I ran the numbers - several ways and I was very conservative in my projections. I thought I will make money with the deal but sadly, I LOST money!

    Here's the lesson: You can turn around an ugly dilapidated building but it's hard, if not impossible to turn around a terrible location/ area.

    Here's another lesson: if you have an investment in a war zone, you can make money with it but you got to be super hands on and you almost have to live there or pretty close by. You cannot manage it from a distance and you got to watch that property everyday.

    All my lessons are in my podcast interview:

    http://Biggerpockets.com/show65

    1Reply
  • Richard Burke
    New York, moving to, FL · Member since 2015 · 43 posts · 7 votes
    10y

    ..and to think, I cant even get a duplex for 150,000....

    0Reply
  • Lucas Mitchell
    Investor · Las Vegas, NV · Member since 2016 · 36 posts · 4 votes
    10y

    congratz @Omar Merced! Cant wait to watch the progress. Just got my first SFH in Cinci under contract and getting a good team together, not to your level yet, but I dream big and will be soon.

    0Reply
  • Nick Alvarez
    Orange, CA · Member since 2015 · 16 posts · 5 votes
    10y

    @Omar Merced

    Sounds fun! glad to hear the city being supportive, hopefully they provide more resources to your endeavors than just their enthusiasm.  Excited to hear updates on this.

    0Reply
  • Neil Henderson
    Specialist · Carolina Beach, NC · Member since 2016 · 390 posts · 496 votes
    10y

    Congrats @Omar Merced Can't wait to hear more about it.

    0Reply
  • Andy Hudgins
    Covington, GA · Member since 2015 · 99 posts · 33 votes
    10y

    You GOT this Ooooomar!!!!

    0Reply
  • Justin S.
    Investor · Jackson, OH · Member since 2014 · 64 posts · 20 votes
    10y

    Congratulations on the deal!   I wish you the best. I have been looking at the Dayton market for a while and haven't been able to pull the trigger because I have been gun shy with the Dayton economy. Dayton has been bleeding industry for years, population has been shrinking and the median income trending downward.  BUT, the real estate deals are aplenty. I'm excited to follow your progress and hope this is a home run for you. Congrats again. 

    0Reply
  • Jose Belman
    Real Estate Broker · San Jose, CA · Member since 2016 · 44 posts · 4 votes
    10y

    @Omar Merced Congratulations All the best. Just curious why didn't you get bids from your own team before you purchased ? Where you just relying on the current bids such as 250K and 300K etc. 

    All the best. 

    0Reply
  • Anastasia Jordan
    Investor · Birmingham, AL · Member since 2016 · 446 posts · 305 votes
    10y

    Congrats and I hope it is a success!  :)

    0Reply
  • Jay Sey
    Investor · Gloucester Twp , NJ · Member since 2016 · 14 posts · 0 votes
    10y

    18 unit for 12k? I was looking at a 6 unit for 250k and thought that was a deal.

    0Reply
  • Kevin Hazelton
    Real Estate Professional · Lafayette, LA · Member since 2016 · 5 posts · 1 vote
    10y

    Congrats! Please keep us posted and add pics as the rehab goes.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Wendell De Guzman  mid west war zone ghetto cheap dogs like these have a way of giving those who buy them a real education in why they bought it so cheap.

    I mean it mine as well have been free. .who gives away and asset that can actually make money .

    I suspect this one will be  a learning curve.. I see the OP has experience in PM.. but if its Vegas PM ( which Vegas has its rough spots) but nothing like dilapidated F areas in the mid west..

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Jose Matuk
    Investor · Dallas, TX · Member since 2016 · 84 posts · 33 votes
    10y

    This is awesome, please keep us posted if you don't mind, gives us newbies a lot of motivation and examples. 

    0Reply
  • Jeff Brough
    Real Estate Investor · Albuquerque, NM · Member since 2016 · 2 posts · 0 votes
    10y

    Thanks for the photos and best of luck!Looks like you've got a great deal

    0Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    10y

    I know this dude in Detroit that helps investors with these types. Of the two I saw him work with, the first one just could not get going...stripped out a lot and eventually the investor just sold it to the next guy who has been sitting on it since. On that first one he actually cut off the stairs to the second story but still no luck. He did set up a camera way up high but somehow the camera got ripped too. The second one was same scenario but they keep at it. It is like one step forward and two steps back. He wanted to get it up and running with one unit and use that as security-related. He was so close last check but it got stripped again. I think if they can get some 24 hour security set up that is going to be the only way. Hopefully, Dayton is a little more forgiving in that regard. Here is a video of the first place where he took the stairs out but after much invested he had to dump it to the next investors. Keep us posted!

    2Reply
  • Lisa Bryant
    Washington, DC · Member since 2016 · 94 posts · 43 votes
    10y

    Congrats, Omar! Sounds like an opportunity to build your portfolio. I hope and pray that you have a great team and things will move forward for the best.

    Learn, Apply, Produce!

    0Reply
  • Robert Germano
    Investor · Las Vegas, NV · Member since 2016 · 16 posts · 2 votes
    10y
    Hey bud. Yes congrats and I'm with you all the way.
    0Reply
  • Chad Olsen
    Lender · Morgan Hill, CA · Member since 2015 · 55 posts · 24 votes
    10y

    congrats! This is a great find. I hope you have the numbers worked out. Would be interested to see your numbers and your thought process on how your analytics works.

    0Reply
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