All Forum Posts by: Christopher Blanco

@Chris T. Already talked to my contractor. He said 15K for the addition, 15K for the rest. I added $5K of contingency to that. And the 650 is before the addition

@Bob Okenwa Its a pretty even mix to be honest at least on that street. When you north or south a street the majority are 3/1 or 3/2

In Ohio there is no required late fee. Rent is due on the 1st, at 12:01 am on the 2nd the rent is late. 10% of the rent or $75 (whichever is more). 3-day notice goes on the door on the 2nd. 

Sounds harsh, but its training your tenants that you are not running a charity. 

I have a property in Euclid, OH that I have a lead on through my probate mailing. The property is in a decent area, but is only a 2/1 and 650 sq ft. I can get the property as is for around $18K-$20K, put about $10K into it and turn around and rent it for $775. Using my calculator that gives me a payback of 5 years and a cash flow of about 470 a month. Not bad...but the ARV will only remain in the 35-40K range.

However if I add on to make it a 3/2, and do a full rehab (35K total) I can bump the rent up to $995 a month, cash flow at $560 a month. ARV goes up $80-$90K. Payback is 7 years however

So in the first deal, the payback is quicker but the over all value of the deal is less and the 2 bedroom house insures my next buyer is an investor. Converting it to a 3/2 almost doubles the value of the deal, converts it to a home a home owner would buy, but with a longer payback though.

Any advice or thoughts?

TJ, I have 6 kids, 18 all the way down 6. I understand what you are saying, and I don't want to hijack David's thread anymore, but having young children is only another of MANY obstacles you need to overcome. It can be done. My point added to yours is having a spouse that is supportive is A MUST not a nice to have to acheive any level of success in this business. Sorry @David Zheng for hijacking your thread. 

@David Zheng No worries, I wasn't offended!  I was more responding to the comment below yours. I agree completely, though. I am just saying that if your spouse is supportive and involved you can avoid that slow down a lot. 

I think SFH is responsibility of the tenant, though I am happy to offer my guy for a fee. MFH is landlord responsibility and should be built into the rent.

Its very important to have the support of your spouse, and having kids is not always bad. I have an 18 year old that already invested in a deal and is earning passive income as a lender. All of our kids do things for the properties and marketing and get paid to do so, in addition its a tax deduction for me. However, without the support of my wife I wouldn't know where to begin. She is an amazing asset to my business and if she wasn't I wouldn't be doing this. 

Why are you limiting yourself to conventional financing? Educate yourself on private financing, how to structure deals,  and get out there and network with people who may have money to invest! Its easier than you think to attract private lenders.

Congrats @David Zheng. Do you self manage? What tools do you use to manage rental payments, screening, etc?

@Erod R.  Easy way to avoid this in the future. Invoice your tenants for the water bill monthly on their rent payment portal. They have to pay the water bill AND the rent check in full to be compliant for paying rent for the month.