All Forum Posts by: Craig H.

Best of luck getting started Daniel.  I recommend coming to the monthly meetup in Cincinnati that @Joe Fairless organizes.  Lots of great ideas and knowledge is shared there.   There's people that come that haven't done a deal yet to people that have done numerous deals and all in between.  You looking for buy and hold single family or multi-family properties?  What areas of Cincinnati are you interested in?  I did my first buy and hold multi-family deal last year, a 5 unit on the east side of Cincinnati.  If you need anything or have any questions feel free to reach out.  I'm not expert by any means but will be happy to share with you what I know.  

Aimee your background with help tremendously as you get started investing. What areas of Cincinnati are you interested in? Best of luck. Look forward to hearing about your investing goals.

@David M. I use the Allure gripstrip vinyl from Home Depot in my 5 unit.  It works very well and looks great.  It is very easy to install.  Main item is just making sure it is acclimated to room temperature.  Send me a message and I'll send you over the contact information of the person that helped me put this floor down in Cincinnati.      

Huesman Schmid. Based out of Cincinnati.

Parker I would say my main obstacle right now would be capital, most of it is tied up in the 5 unit at the moment.   Thanks for commenting by the way.  Good advice! Bryan one thing I may run into is getting bank financing the next year, because I won't have 2 years work history being 100% commission.  Due to this I have been targeting off market properties in the area around my first one in hopes of seller financing.  Or ideally looking for a 5-8 unit next and taking those numbers to a commercial lender.  Most likely easier for me to get bank financing if the numbers make sense on the deal rather than try to get bank financing on a 4 unit or less.  

Looking for advice on how to acquire property number #2.  I'm sure most newer investors get property 1, get that going, and say okay now what.  Hopefully there is some tips out there on how to move forward and obtain property #2 given my current situation.  My first property is a 5 unit in Cincinnati, OH.  I live in 1 unit and rent the others.  Winter month's cash flow is just under $700/month.  I anticipate $800, maybe just over that, in warmer months.  In my full-time job I am 100% commission and right now it is going well, but you never know when that will slow down/come to a halt.  Given the full-time job income situation and the cash flow from the first property how would you move forward in acquiring property number 2 if you were in my shoes?  Any advice/tips is greatly appreciated.   

Thanks @Jay J. My friends look at me crazy for doing this, but all it takes is some sacrifice and being smart with your money to set yourself up for the future. 

Thanks DL. Running my initial numbers on the building I had the heat way over estimated. My first few months of having the building I had the heat on as if people were living there just too see what that bill would be and it was way way lower than I anticipated. Thanks for the heads up on the window AC units! There are a few that won't make it through the summer I think so I will look into those units.

Thanks @Bryan C.!  Rehab came in just under $40,000.  My dad and I did the majority of the work.  The only item I did not help with at all was reglazing the bathroom tile.  The floor re-finisher I used let me help him with the work and so did my contractor buddy that did the windows.  Helped me save a little bit of money there.  Here's some numbers on the deal: 

Purchase Price= $149,000 

Closing Costs= $2,785 

Rehab=$40,000 

Property Tax= Will be $4000/year.  I challenged the auditors assessment and they agreed with the new value.

Electric= $50

Heat= In December, January, February, and March the highest heat bill I had was $173.  Just turned the boiler off this week.  

Rents are unit 1= $500 (did minimal work to this one, tenant wanted to resign lease but didn't want anything updated even though I offered).  He was paying $400 under previous landlord.  Unit 2= $615 Unit 3= $560 (My best friend lives in this unit)  Unit 4= $575 (Tenant went to my high school and we were sort of friends so I didn't charge him as much either.  Unit 5= I live in.  

After mortgage, taxes, insurance, and expenses with the new tenant now moving in during winter months cash flow should between $600-700/month and during summer should be $750-800 most likely. 

BP,

Just completed my first deal/renovation in filling my final vacancy this week. BP podcasts, interaction with members, and attending a BP meetup helped me a lot with the process and accomplish what I set out to do. Got my first house/investment property on my 24th birthday, a 5 unit apartment on the east side of Cincinnati. Got a conventional loan through a local portfolio lender. Closed on December 28th 2015, completed renovations, and had the 4 units rented out in just under 4 months. I am moving into the 5th unit myself. The property is cash flowing with me living there as well, which has been great. The last tenant moving in is great and met all of the qualifications I have in my lease. Over the past year before I got an apartment under contract I was reading and listening to podcasts and that is the way to start, but I've learned more in the 4 months of actually doing it than I did in that year studying. The rehab went relatively smooth and learned a lot during all of that work as well. The unique thing about this property (which helped me in negotiations) is when I was researching the property the City of Cincinnati considers this a 4 unit building, the 5th unit does not have a certificate of occupancy. This is the next item on my list to be taken care of, is to obtain a CO for the 5th unit. Doesn't matter for the time being because I am moving into that unit, but if I want to rent that 5th unit out one day I need that CO to do it legally. Have been in contact with the building department about the process I need to go through to obtain it and from discussions with them it sounds possible to obtain, so I am going to give it a try. My next goals are to connect with more investors in the Cincinnati area and purchase another multi-unit property by the first quarter of 2017. Advice on moving forward to acquire the next property would be greatly appreciated. Attached is a link to check out the before and after photos of the apartment. All the before's are towards the top and after's at the bottom of the album. Renovation Photos.