All Forum Posts by: Bryan Blankenship

@Bob King Yup, Dayton is great! We've had a lot of properties up around Dayton and just south of it, and they've gone like hotcakes!!

Tenants pay their own utilities here. Definitely makes things much easier that way!

@Liban Knight Certain pockets are definitely great around that area, you just have to know the neighborhoods well! I think you probably know what areas of Dayton to stay away from already. 

C-/D properties typically run much higher maintenance/repairs/vacancy bills than their C+/B counterparts. We invested in C- for a while, but quickly realized that most of our returns got eaten away by constant repairs and turns. We found that once you cross the C+ threshold, you start to see a much better rate of return over time. You don't get nearly as many tenants who pay late, trash the place, or worse.

There are definitely some gems on that side of town, if you spend the time to really look! 

@Liban Knight Welcome aboard, sir! Dayton is getting pretty hot now, so the longer you wait, the harder it will be to find a good deal. We have some duplexes we manage around Centerville, and they lasted about 0.02 seconds before they sold to one of our clients!!

Now, the story might be different if you're looking in other parts of Dayton that hover more towards C-/D class. I really wouldn't recommend going that route, though. A solid B or maybe a C+ class would be the best way to make it happen. Multi-families are in SUPER HIGH demand, so I wish you the best of luck in finding what you're looking for! :)

@Fredrick Hock It all depends on your long-term goals and overall timeline, but you're tackling this at a great time in your life! You already partially-answered your own question. Rental properties provide you with a passive income stream that flows and flows into your bank accounts. :) That's where you should invest for stability and consistency. Real estate is pretty uniquely insulated from the fluctuations of the market at-large, so investing in other things comes with greater inherent risks, of course (plus you can re-fi out and re-invest depending on the circumstances). Diversifying is great, and you have plenty of time left to experiment with your funds, but it is ultimately all up to you!

I could ramble on for about 56 hours about the pros and cons of each of those things you mentioned, but I know others will chime in here and put things much more succinctly than I can. It's all a delicate balance of risk vs reward and rates of return vs time. 

@Francisco Jasso I agree with @Ali Boone! It's totally up to you, of course, but at that range you're looking at much lower-class properties that come with a whole host of issues you probably DON'T want to deal with (crime zones, high vacancy/high turnover, high repair and maintenance costs). I mean, initially the numbers LOOK GOOD on paper, but in reality, all of those returns you think you're going to have vanish within the first 18-20 months.

At that price range, you're talking more of a fix-and-flip rental, rather than a done-and-ready rental. You NEED to have someone on the ground, wherever your property is, that you can trust and rely on. If you don't, you end up with poor quality, shady business practices, poor communication, etc, and since you're not there yourself to see it.... well, I think most of us here have heard of some names that have taken advantage of that kind of situation, and the clients are left picking up the pieces. Do your due diligence. Ask a ton of questions. Push. :)

@Jamil Mitchell Can't be a coincidence, right? :)

@Jamil Mitchell As long as you do some thorough due diligence, it works pretty well! I think it all comes down to having good people on the ground that you trust. Most of our clients are out-of-state, and it's working VERY well for them! Sometimes they will fly or drive in to visit and do a tour with us, but most of them don't. We've also had a few that come in for their first purchase with us, to develop that trust, then buy several more without ever setting foot inside of those properties themselves because they know our level of quality and service.

Short answer - Yes! Long answer - Yes, as long as you don't dive in without doing a lot of research and communicating heavily with whoever you're planning on investing with! :)

Good luck, sir!

@Rachel Valliere Welcome aboard, ma'am! Most of us here have a real passion for real estate, so maybe you'll catch the bug, too! :)

DEFINITELY do your due diligence upfront and have contingency plans 5 ways to Sunday, but don't let that hold you back from doing that first deal. A lot of people are super hesitant on that first deal since it's uncharted territory for them, but then afterwards, they wish they would have done it sooner!!

Property management is one of the hardest parts, and it's often very under-appreciated, honestly. It'd be great if you could establish a relationship with a good property manager in advance of you actually needing one. Sounds like you're on the right track!

@Leslie Mangrum I prefer NOT to do cash as I like a very tangible paper trail, but I think some people like it. We generally take the first payment in the form of a money order or cashier's check, then get our tenants set up in our property management system online and let them pay online. Most people love the convenience and ease of online drafts. :)

@Blake Garcia Kids are SO brutally blunt and honest, I love it! I have a ton of funny quotes and stories from my 6-year-old niece because of that. You have to be able to laugh at yourself, I think. Most kids aren't naturally mean or judgmental - they become that way based on what they see and hear from adults.

All my tenant quotes and stories are from adults, and I think I've blocked most of them out by now LOL