All Forum Posts by: Carlos Ptriawan

Hi, If I build a shed with size 120sqft and a bathroom inside of it, is it technically a shed and not an ADU? since no permit needed for anything less than 120sqft.
I found someone renting out an 120sqft 'ADU/shed' for $99 in Airbnb.

I think we're all biased towards the markets we live in, work in or invest in. That said, greater Cincinnati is also a solid market to consider. Despite appreciation (like we've seen everywhere lately) there are still affordable deals to be had and Cincinnati has a solid renter base. Northern Kentucky (which is actually where Cincinnati international airport is located) is currently seeing a lot of growth due to Amazon's 99-year lease and build up of a distribution center on airport property. Things are definitely on fire here.
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That's right. Everbody is biased because they don't have information nationwide. 

You get CF and appreciation in OH,KY,IN,TN,KS,AL just like you said. They're all having the same profit profile. But in case of dollar efficiency, Ohio is very interesting.

The key is buying it right.

If you're looking for cash-flowing markets with some appreciation, there're 20 cities in the USA that has > 1.0 rent/value ratio by default.

I put my seeds in multiple cities for cash flow and one in highly appreciativemarket.

Wow, what a story. Quite funny too.

hello @Brandon Sturgill, the way I invest in MF is not by dollar value but by calculating the profit ratio:
- understand the entry home's average price for the specific market
- understand the typical rental unit for an entry price
- understand the affordability index. Nationwide, there's only a handful of market that the houses are still affordable. In the next 10 years, most of these market is most likely gone.
- understand the typical trendline of the apartment cap rate, is it increasing or not.
- understand the typical unit price for an apartment and its rental price
- understand future appreciation based on historical data

After that, it's just minimizing the risk. Once I understand all the data I create a simulation how to achieve DSCR > 1.9 including PM fee so the house is self-sustainable when repair is required.

What I found is there are the specific sweet spots and an inverse U-curve for the yield given for number of units. Many times, smaller residential is giving a better risk/reward compare to large MF.

hello @Daniela Andreevska yes we've acquired > 10 doors since beginning last year. But I don't want the assets to be concentrated into one city/property management (that's only good for them) ; but we build the portfolio in multiple cash-flowing/appreciating cities.

we already have good future appreciation projection before we buy based on external market research, Columbus is just one of them.

We've to invest OOS , In our local market, one million could only buy a ruined property LOL :)

- Don't rent to local guys
- Check their job and background especially the company or assignment that they work for.

I think the correct way to assess this is by comparing the average apartment cap rate and price per unit in the area/neighborhood. Most fourplex will be in MF zoning anyway. There's no such thing as a luxury fourplex. So it's more 'market-specific'. If your number matched with the average fourplex/apartment in the area, then that's it. Very straightforward. Eg; in the bay area, the price per unit is about $400-$500k with rent between $2000-$2400. You don't compare the MF zone with your primary's SF zone.

Just calculate based on the DSCR/PITI, that's what really matters.

It's a decent deal and common in the area. Nothing fancy. If it has not much repair, go for it.

These days, you will get cash flow and appreciation at the same time. Congrats.