All Forum Posts by: Ryan Arth

@Rereloluwa Fatunmbi You are inheriting the tenants and their leases. As they are month to month, you should get new leases in place at the end of the current lease (a month). You can renegotiate whatever you want regarding rate, responsibilities, etc. Its up to you how hard to push on these things, as it could force a turnover for you, which may be to your benefit (or not, depending on your plan). 

Tallmadge is a stable suburb and you are under 1% rent to purchase price with a vacant unit. 

The additional potential given the size of the lot really has to do with where it is, how the site is laid out, and what zoning will allow. On the conservative side you could add vehicle or personal property storage for the tenants, on the high side, for third parties. A quick call to the city would answer the question. Then you can calculate the return on investment to do whatever work might be required to outfit the additional space. 

@Cristian Veres If I can help in any way, please let me know. I am a long time investor and agent in the market, as well as a builder. Some areas of the city/suburbs won't have the product that you are looking for, as they were never built there, but others will have many. You should be able to find them from the inner city, to solid suburbs, depending on your strategy. 

@Dhruv Patel Unfortunately, the risk of this occuring goes up significantly when remote. What's done is done, try to get past wasting more time and money fretting about this as quickly as you can. No one is suing anyone over $200, but as others have said, the potential risk of damage or other B.S. is the greater concern. Or the guy just goes away. 

@Jeff Pavlik There is demand year round. Are there more people looking during the summer, yes, but that should not dissuade you. If you have the best option at a given price point, at any time of year, you will find a tenant. There are always people creating households, moving for jobs, family reasons, etc. There is a more active season, similar to house sales, but you can still sell a house at any time, without being forced to discount it. 

@Orlando De La Torre Welcome. My company is a builder of for rent and for sale product, and I am a long time investor and agent. If I can help you on your journey in any way, please reach out. 

@Nathan Crandall Those prices are quite excessive. Assuming that the property itself and the area that it is in aren't major red flags, that vacancy is excessive as well. 

I agree with the other Nathan, it is a thankless job, but that doesn't give the terrible PMs out there a pass. There is rampant neglect and mismanagement in the industry, and it makes it difficult to stay on top of the situation remotely, as the investor has approached the situation with the ideal of being more "passive". 

@Alev G. Depending on how small of a MF you are talking about, they normally will trade based on the NOI and a buyer's required return on capital. Comps will be used for duplexes and triplexes, but NOI becomes a stronger metric above that. Strong areas for SFR (from a tenant/buyer demand perspective) will be in-demand for rentals as well.

As you pointed out, the podcast mentioned nine(!) potential markets. And there will be people losing money in each of those markets, and people making money there and in dozens of others. Execution matters quite a bit, but especially remotely, you want to make sure that the wind is blowing in your favor. 

@Justin S. What is your build cost psf on a triplex, not including the land? I have a design for a build to rent triplex for infill lots that we are trying to dial in, and our costs relative to rents are not where they need to be right now. 

We are working on attacking costs on our other builds, hoping to increase margins to where we can greenlight printing these duplexes in areas of the City where rents can support the project.

Are you stick framing an economy type product? How big are your units?

@Craig Cann Looking for the next up and coming market is more of a speculative play. The payoff on speculative bets have worse odds but larger potential gains. Doing this strategy remotely adds another layer of difficulty. If this is your chosen path, look at population trends for rising tides. 

Speaking in generalities is difficult, but even in markets that are perceived as flat when viewed from a macro level you will find investors that are succeeding by being dialed in and local. And it doesn't necessitate going to the low end of the market to chase yield. 

@Craig Cann Looking for the next up and coming market is more of a speculative play. The payoff on speculative bets have worse odds but larger potential gains. Doing this strategy remotely adds another layer of difficulty. If this is your chosen path, look at population trends for rising tides. 

Speaking in generalities is difficult, but even in markets that are perceived as flat when viewed from a macro level you will find investors that are succeeding by being dialed in and local. And it doesn't necessitate going to the low end of the market to chase yield.