All Forum Posts by: Art Mimnaugh

@David Hernandez as a fellow Bay Area CA investor that is in Columbus I agree with everything that @Account Closed said with a couple of footnotes. Forming and filling an LLC is Ohio is quick and cheap but living in CA complicates that. CA will tax you for every LLC interest you have per year so make sure and take this into account as you grow (i.e. may make since to just have one LLC versus one per property as is common in Ohio.). The other item to take into account is you have to a statutory agent that is physically in Ohio. Most cases your local lawyer can handle this but just a detail.

Happy to chat and exchange notes if you have any questions.

Cheers,

ART

@Coleman Cox welcome to the increasing large contingent of Bay Area investors in the Columbus market. It has been a great market for us over last few years and happy to grab a coffee/beer/call and exchange notes. Based on your goals we are similar in most of our multi-family buildings are class C assets with strong CoC returns and cash flows. Drop me a PM and we can connect.

Cheers,

Art

@Oliver Leonetti we have used Todd Helpbringer on a commercial portfolio and been pretty happy.   Product may not be for everyone but willing to do 80% and portfolio, with release clauses.   As well as fixed rate products on a 20 year amortization.

Cheers,

Art

@Harman N. drop a line to @Brandon Sturgill he has a report with all this data.

Cheers!

@Brandon Sturgill would be a good source as I know he has something exactly like this for Columbus!

@Account Closed mentioned we have noticed that the Section 8 tenets take care of property much better than market tenets to not loss their voucher.    It isn't all gravy as in multi-family most Section 8 don't allow you to bill back water for instance (unless can be in tenets own name), but just build your models to have this accounted for as the few other items.    We are still learning but have been very happy with Section 8 in our early experience.

@Zack Rosenbaum $400 for a 4 unit is crazy but not sure asset class.   Drop me a PM and I will send you to who we use.   Have multiple 4 units (B/C asset class) in different parts of city and we average about $100-$120 a month per building.

Cheers,

Art

@Brand Seet as I think @Jeff Dzado was alluding to you may want to double check the 3% down for OOS investment as that loan product I have only seen for Owner occupied but I could be missing something.   For most traditionally financing OOS expect 20-25% down as a requirement.   Although another option would be to see if you could find a local property that could qualify for a 203K loan which would also allow you to roll up the rehab costs.   I am not familiar with the WA markets but just some ideas.

Cheers,

Art

@Kathy Tan you will be amazed how many CA to columbus investors there are in that market now so should be able to get a lot of information. I am based in San Francisco and we have grown our portfolio in this market for many of the same reasons I am sure you are looking at. To specifically answer your question on taxes (of course consult your CPA) CA is ruthless if you live in CA and have any interest in any LLC's no matter which state they are in. Ohio is super cheap ($99 one time to setup up an LLC) but for each LLc you will be charged a minimum of $800 a year in CA so makes looking at how you hold multiple properties slightly different. The other key thing to understand about Columbus is property taxes which can be brutal depending on the sub-market there. When evaluating a property on Auditors site make sure and check the current valuation. If for say is $50k and you pay $100k you will likely get a BOR reassessment that would not only double your property tax bill but is is retroactive to previous year's taxes based on how they are structured. All manageable as long as you build in these numbers to your models or use some methods to minimize this. Having a strong team can for sure help guide you in this process.

Cheers,

Art

@Bob Malecki not knowing all the details we work with Dow Voelker for basic evictions with success.   I would reach out to him and see if he may be able to help or advise based on your unique situation.

Cheers,

ART