All Forum Posts by: Cory O'Dell

It was a lot to catch up on, but definitely found the thread valuable and appreciate you taking the time to frequently update the community. Best of luck in the future!

Cory

@Kevin Moules Plenty of opportunities for cash flow in SFR, just not as much as in small multi-families IMO. At least in the ones I've looked at that's been the case. But with small multi-families being a little harder to find we also look at single families. Just have to be patient in finding the right one in the right location.

Also, don't have to be David Greene to do the BRRRR strategy! We chose Ohio because I have family there (and it's where I grew up), and they'll be our people "on the ground" for things we need help with on that front. My point is that we're investing from out of country, not just out of state (time difference sucks!), and it's doable if you set up your team. I say that because value-add is the best way to build equity in a property, even if you skip the "refinance" and "repeat" part of the acronym. IMO if you're not buying value-add you might as well buy turnkey and be totally hands-off.

Gotcha. Sounds like a great return for turnkey! 

@Kevin Moules Deals in Tipp City are slim pickings. We look for small multi-families all over Miami county (or a good deal on a BRRRR single family opportunity), but not much to go around in Tipp. If you find one you think is a good deal there, odds are my eyes are on it too so fair warning ;)

We account for 10% maintenance, 5% cap-ex and 8-10% vacancy when we do initial number crunch. When keeping those percentages, strong cash-flowing Dayton properties have been hard to find, at least on the MLS. Maybe it's the analysis paralysis, but we've been trying to stay out of Mont. county because taxes kill the cash flow compared to other counties around it. 100k property in Miami county is like $1200 annual property tax. In Dayton/Mont. county it's pretty much double that. Brutal.

For the turnkey properties, are you still cash-flowing if you account for eventual maintenance/cap-ex/vacancy every month? Pocketing $300 every month sounds nice...but if it's not accounting for any eventual expenses over the life of the property it doesn't look so good.

Playing catch up on this thread after my tag for "Dayton" was mentioned. Great info here!

Good luck. My wife and I have been ready to purchase for the past month or so, and getting an agent to go through properties with us (let alone have some in mind!) has been a real struggle. Most of the realtors we’ve worked with take days to reply or don’t reply at all. We’re on our 4th now I think?

If you find one let us know. 

They didn't give us a rate unfortunately, just the 15% down and no minimum for NOO. I'll let you know when we end up moving forward on a property.

Also. The homes I’ve crunched numbers on in Troy for $30-$40k will take a good amount of work to be rentable (let alone upgraded or nice). You’d likely be all in for $50k-$60k at least. You’d have to ask yourself if that’s worth the mount of rent you could bring in after that. It likely won’t be $1200 to meet 2% rule on 60k invested. Maybe you’d be able to get $800 or $900 or so in rent but even then that’s only 1.5.  Another reason I practice analyzing deals with the calculators instead of looking at certain rules. That $60k metaphorical house I mentioned could still be a great deal! 

I use an app called Dealcheck because it's free for up to 5 properties at once. BP also has their own calculators if you're a Pro member. But it lets you see cash flow, cap rate, ROI and IRR for each. I have little interest in a single family that isn't cash flowing at least $150 a month. $150 a unit is my goal so if it's less than that I tend not to bother much with it unless the price is just that good. Through Wright Patt CU we were told no minimum purchase price and 15% down for non owner occupied. Because of this, we're trying to use leverage to our advantage...finding those $150+ a month cash flow properties that are roughly $70-$80k means your money all in can be less than $15k. So with that model, our plan is to acquire multiple single families over the next couple years. With saving at least 30% of our income every month (shout out to Set For life), buying multiple shouldn't be too difficult with so little cash invested each. With 5 properties we'd be cash flowing at least $750 a month and will have made back our down payments in 8 years and have a ton of equity built up. I don't stick so closely to the 1 or 2% rule, as it really doesn't paint a good picture of what your numbers will look like anyway.

Beyond cash flow/cap/ROI/IRR that we get from the app, we typically look for sub $100k, 2 bed 1 bath if it's over 1000 square feet (potential for 3rd bedroom) or just 3/1 and 3/2.