All Forum Posts by: Allyssa McCleery

I own 2 single family frames in Lake Worth and they have been great so far (the second one is just now getting out of rehab). I think the market is great and has a lot of potential. I have seen a lot of improvements done by the city over the last year and a half. There are lots of new communities coming up as well and the city is incentivizing new constructions so you will have more options for condos. I agree with Mitch that you have to be mindful of the HOAs and be sure that you are allowed to rent out the unit. Your assumptions for rent are correct. I will be renting out a 2/1 single family for $1400, the 3/2 I have has been rented for $1500 for the last year. There are a plethora of renters in the area and if you hire a property manager I'd recommend finding one that speaks Spanish as well.

@Max McGuirk That is a good strategy. I own property in Florida (have not had to evict so far) and Ohio (have had a few evictions) and I know that the process for the landlord is much easier in Florida. I lose a couple months rent every time I have to evict in Ohio so I am trying to figure out how to optimize. I have heard New York is the worst with the potential to lose 6 months rent. 

@James Wise As in when you screen a tenant, and you require that the tenant let you "inspect" their current residence to determine if you want to lease your unit to them. Does that make sense? I am wondering if that is perfectly legal to do in Ohio. 

I agree with @Chase Louderback that Loopnet is a good strategy for finding active brokers. You will want to find someone who is constantly attending these types of events and staying active online because those are the types of brokers that have the most connections and therefore will likely have the best deals. If you do find this person just make sure you have all your ducks in a row to pull the trigger when it comes time because the last thing you would want to do is damage the relationship and force them not to take you seriously. 

@Nathan Gesner Great advice on putting a cap on it. I don't know why I never thought of that! I currently use a service that measures each tenants usage and sends them the bill but as the landlord I am still responsible for paying the water bill as a whole. I have played around with what I want to do but it seems like increasing the rent is the best way to go. 

@Garrett Hawk You want to account for much higher vacancy because with these types of properties you will likely inevitably face evictions which are expensive. In Ohio I lose about 2 months of rent due to eviction. I will get more efficient overtime but definitely in the beginning it is best to prepare for this. 

@Keith Jourdan I agree that they leave junk in the unit that you have to get rid of. I have a friend from Detroit that is interested in investing there. Where would you recommend looking into? Where do you find this type of research you mentioned for retail corporation classifications?

@James Wise I am curious if you know the Ohio laws regarding requiring current home inspections to pass the application process? 

I agree with others who said you are better off spreading out your money. To really grow in this business you will want to leverage as much as you reasonably can. Make sure you know how to analyze deals properly and account for higher vacancy in your analysis. Because you are just starting out I would plan for 5 weeks vacancy or 10% (I estimate this because it may take 3 weeks to fill the unit and you may have to pay 1/2 months rent as a tenant placement fee). I would buy the first one with as little down as possible, with a healthy cashflow, and then wait until you feel comfortable enough to buy the next one. You will likely become addicted to the acquisitions phase and therefore will be thankful for having cash in the bank if you come across another great deal!

I too am dealing with a similar situation at one of my properties. Luckily, I had a property manager in place before I sent out a letter and was advised against it.

I think what @Account Closed says is a good idea. I would check with a local property manager. Even if you are not hiring one it is a good idea to maintain a relationship with a certified property manager who has undergone training to ensure they are following the law in their operations. 

@Alex Bekeza Based on what you're saying it sounds like this will only work if a seller is super motivated to sell to you (family member, etc). It seems like this would be the least competitive way to acquire a property. 

@Jeff Nydegger Understandable. Although, as long as you are diligent about maintenance and repairing the damage that has been done I don't think you will have a problem finding a buyer. There are plenty of older buildings across the county that are very desirable places to live and own :) I think you have a great opportunity and look forward to hearing about the results!