Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
Please analyze these property:
60 units in 5 buildings, 24 one bed / 1 bath, 36 two bed / 1 bath. Ask price $875k, 92% occupied.
Income and expenses you can find in the excel file http://www.a-l-a-g.com/realestate/crest.xls, this is the property cashflow analyser from biggerpockets. All expenses actual (August 2009) the income is with 15% vacancy.
Last appraisal was 2008 in October for $1,2 million.
New windows in all buildings.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
On the contrary, the red tape is an opportunity! As it scares Mr Investor away, so too will it to others placing you and a cash offer in a nice position.
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
17y
Norm,
Easy answer, for 500k - 1 million Euro you become a 10 unit property, thats not funny. Alternate I buy a property in rural area, this is cheaper but under 150k Euro no way (with 3-4 units).
In Ohio and the US I find many better propertys, the only prob is as foreigner to find a lender.
So I will take cheaper propertys with 8+ units with owner financing or if I can bought a MFH with my own money completely. Steve knows my efforts, but I wait today for a hit. A 8 unit in Cincinnati was only for demolish, I pay the appraiser and take Steve for the estimate on repairs. It was sobering, the owner made false statements to me. Without Steve and the appraiser would have make this deal. But I play save, I know better.
Now I´m search again and this property here is a fortunate coincidence not any more.
Real Estate Investor · OH · Member since 2009 · 37 posts · 11 votes
17y
From a title standpoint, anything in the court system "can" be a tad complicated. But, I agree with Mr. Barnard, this could be a great opportunity if you hold out. Eventually, all things come down to finance of course. Best of luck on that, this could be good for you if you play your cards right.
Macclesfield, Cheshire · Member since 2009 · 22 posts · 0 votes
16y
Hello Fellow Investors
I'm from Poland but currently based in the UK and would be willing to join you Uwe and others in serching for good multi-family deals in Ohio, that are cashflow positive.
I'm new to this forum as you can see, I've done a bit of researching on the subject of property investing in the US but mostly on Detroit market so far.
Anywhere in EU is very expensive and you can not count on any half decent cashflow from your investment.
US looks good at least on paper, especially so called rust belt states.
I'm not looking for capital appreciation as my main objective but for a solid cashflow. Have experience in efectively managing rental properties.
If you Uwe or others are interested , let me know, we could discuss it further.
Macclesfield, Cheshire · Member since 2009 · 22 posts · 0 votes
16y
I've always thought there are many good high cash flowing deals in Germany especially in the former east part of the Country.
There is many German properties being sold at auctions in the UK showing good cashflow, but they are mostly in some small towns where from what I've heard people have been moving away to other places. That's why I've never considered investing there plus i don't know the language.
There is also many apartments for sale in Berlin that show 5-7% yields and people here say that the German property market will develop in the same way as other EU markets have.
Clearly if it was all so good you wouldn't be trying to invest in the US but in your own Country, as you know the local market best.
Have you had any luck finding motivated owners in the US willing to finance the purchase of a property from themselves?
Have you tried to look at any other market except Ohio?
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
16y
Jarek,
High cash flowing deals with prices over 1 million euro yes. I don´t have this money. I come from the east part of Germany, we have unemployment rates of 12-18%, depending on the area, since 1992.
And yes if you buy now a 6 unit house for 200k Euro in a small town, the name is Zwickau with 70,000 residents, you have a cap rate of 7-8% with 100% occupancy, thats to low for me. You cannot rise the rents immediately, so no way for a good investment deal.
Other way is the auction, but you become only vacant houses or houses needs high rehab. The real estate market in Germany is not the same in the US. If you have much money you can do good deals here, but with fewer money you have no chance to invest here.
You can find motivated sellers in the US, they must own the title of the property, no mortgage on it. If he don´t find an buyer he is willing to do land contract or lease to purchase for short term (3 years).
One case I have in Mansfield/OH, was on craigslist in June, 12 unit for only $179k 80% occupied, I wrote him to make an owner short finance, no answer. Last month a became an reply from him, he will do it with 25% down and 3 years. Its working now, but the 8 unit in Cleveland will override.
And I take a look to other states, IN, KY, NY and PA, it gives many opportunitys in these states, grab it if you can.
Macclesfield, Cheshire · Member since 2009 · 22 posts · 0 votes
16y
Hi Uwe
Thanks for your reply.
When you look for opportunities in those so called rust belt cities and states , do you look at demographics data and unemployment rates before committing ?
What was the cap rate with that $179k, 80% occupied block of flats?
Have you done a due diligence on it ?
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
16y
Jarek,
Indifferent the datas of the surrounding, it must be a decent area, thats the main no warzone or so.
Pls take Google Earth and go to Cincinnati, than seek the University of Cincinnati, go with Street View accross the streets, what you see is nicer houses and ugly houses in the same street, thats Ohio Big Citys.
Where do you would live? In the uglys for approx $450 or in the nicer appartments for the same price?
If we can buy houses for good prices we can rent it for fair prices and with good maintenance/management you have a full house in these citys. Thats my mindset.
The 12 unit with 80% have a cap of 10.2% in this condition, it can be raised with 95% occupied. I work on it.
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
16y
Small update for the "opportunity", its still in receivership and now it is ugly: A new management is in place since October 2009, the occupancy dropped to 75% now. It gives late rents (21 units).
All this in 2-3 month what a sh..* .
The owner is frantic, he lost all his money and the propertie if this progresses. The broker said that not a opportunity, thats be a nail for the owners coffin.
-Uwe.
P.S.: I weep bitterly. A nice complex is now a junk :(.
Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
16y
It looks like the second wave of out-of-state (or out-of-country) investors is wanting to throw their money away here in Ohio. It only took the first group of out-of-state investors about 2 years to crash and burn and now another group seems intent on the same fate.
Uwe, buying the property at a good price is only ONE VERY SMALL PART of being a successful landlord in Ohio. These big cities that you're talking about have many areas filled with druggies, deadbeats, and scumbags. They would be nearly impossible to manage if you lived here, and IMPOSSIBLE to manage long distance. I would be VERY careful about buying something without at least visiting the area for a week or two. You can't get the info you need from the owner, from a wholesaler, from a real estate agent, or from a satellite view.
If you've got money to throw away, why not just send me a check. I'll blow it on some new toys and at least one person will enjoy it. You've got a better chance of hitting Ohio's Mega Lottery than being a successful residential landlord from overseas.
Flipper/Rehabber · cincinnati, OH · Member since 2009 · 211 posts · 59 votes
16y
Uwe,
This is very typical of what happens with the receivership APT buildings here in Cincy..here is what will happen..it will sit for about 6 more months..the occupancy then will be about 25%...Then it gets sold (maybe to me) at about 3k per unit..it gets rehabbed with city money and someone has a great deal.
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
16y
MikeOH,
You can be right with your statement, I don´t have the money for this complex, but 3 month ago it was a big opportunity. Not for me, maybe for others.
I know about the problems in the big cities and I be carefully, but thanks for your moving words.
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
16y
For all insider of this topic, propertie was sold in June 2010 for only $400,000. Has actual 88% occupancy and growing, no late rents, buyer is the lender (sheriff deed) so this propertie should be on market next time.