All Forum Posts by: Darrin Carey

@Kyle Landreth Welcome to BP. There's a great community of helpful people here. Here's a link to the meetup @Dave DeMarinis referred to. It's a bunch of real estate investors, so it's a lot of fun, and a lot of good info gets shared.

Feel free to reach out if you have questions.

The time and date for the Dayton meetup in Las Vegas has been locked down. It'll be Tuesday, Oct 1, starting at 6:00pm. You MUST RSVP to attend and receive the location.

If anyone is looking at investing in Dayton Ohio from out of state, and you happen to be in Vegas around Oct 1, this meetup should be of interest to you.

https://www.biggerpockets.com/forums/521/topics/755596-dayton-ohio-real-estate-in-las-vegas

If anyone is looking at investing in Dayton Ohio from out of state, and you happen to be in Vegas around Oct 1, this meetup should be of interest to you.

https://www.biggerpockets.com/forums/521/topics/755596-dayton-ohio-real-estate-in-las-vegas

Vegas, Baby! We'll be there, but investing is what we do and we can't totally leave Dayton Real Estate behind. Since we have so many Out-of-State investors contact us, we decided we'll take a couple hours one evening and do a meetup with investors who have, or are considering properties in Dayton Ohio. No you don't have to live in Vegas; there's already one person working their schedule to come out from SoCal.

Target topics are:

• Dayton Ohio Real Estate Investing
• Cashflow investing
• Out-of-state investing
• Building an out-of-state team
  The good, the bad, the reality
  

You MUST RSVP.

The exact time and location is subject to change. (We're still picking our show tickets.)

@Jeshua Patrick The IRA answer, like everything in real estate, is "It depends".

Your current tax bracket can heavily influence when and and how much you convert from a traditional to a Roth IRA . That said, I personally think everyone should be using the Roth accounts first before non-Roth accounts. (My wife and I have converted all of IRA accounts to Roth). The tax-free withdrawals highly outweigh the current tax deduction. (And the whole tax planner theory of "You'll be in a lower tax bracket" is nuts. Why should you plan on having LOWER income?) And keep in mind, Congress can, and will, change the tax brackets.

My Self-Directed IRA creates, buys, and sells Notes, buys rental properties, sells properties, and more. Based on the amount my IRA has grown, I am infinitely glad it is a Roth.

Depreciation can be a double-edged sword. It's gives you a paper deduction based on your property "wearing out" and can be used to offset rental income and even ordinary income within limits. However, when you sell the property, the depreciation is "recaptured" and becomes taxable. You can do a 1031 exchange to defer taxes as long as you comply with the 1031 rules and time restrictions. I don't have to worry about that in the IRA. The only way outside of a Roth to avoid taxes altogether is to lose money (not advisable) or keep deferring them until you die. Then your heirs can get a stepped up basis and avoid the tax altogether.

I still do Rental Properties, Notes, and other deals outside of my IRA too. I need to eat today in addition to having an solid tax advantaged retirement account down the road. However, for every deal, I always ask myself if it should be inside or outside the IRA.

Hey, this thing is two pages now! 
@Caleb Heimsoth It's not limited to OOS investors not doing research. I've watched local investors make the same mistakes and lose a lot of money in their own backyard, it's not limited to Ohio or the Midwest. The OP is doing starting right by asking the BP community for input based on a conversation (aka lead) he had on a cruise. It's not as if he just sent someone a 50k check without checking it out. (At least I hope he hasn't.)  I think I should check if my HVAC guy has been on a Disney Cruise lately, it'd be fun if it was him, the profile is similar.

@Joe Splitrock . James is in the Cleveland area. That market it a bit different than Dayton or Columbus, and even Cincinnati. Just ask him about the Gov't rules and interference from some municipalities when you want to buy/sell/rent a property.

@Remington Lyman If you are blindly throwing darts, you are more likely to hit appreciation in Columbus and Cashflow in Dayton. However, if you focus on the submarkets, you can find either one in either location. Both markets are competitive, but, I do think there's more competition for good deals in the Columbus market than the Dayton market. 
On a side note: The UD St Patty's day celebration is pretty impressive......

@Remington Lyman It's not about one market vs the other. There's nothing wrong with Columbus, and nobody has said there was. Equally, there is nothing wrong with Dayton. They are different markets with different economics. For the intelligent investor, there is opportunity in both.

It's possible to make money and easy to lose money on any specific property in any market at any time. Remember, in a rising market, everyone looks like a genius.

@Jeshua Patrick There are a couple people in particular that I like to work with. Who I use does vary according to the market segment I'm in, and honestly, sometimes just how busy that person is at the moment. For B/C areas, I tend to like Huber Heights, Kettering, Belmont, and a few others. Market value on a typical 3/1 rental in a C area should range from 50-75k currently. A B area will run from 70-110k or so. Size, exact location, condition of course will matter. A fully rehabbed house will obviously be at the high end of that range or even more. The more work/updates they need, the lower the price obviously. You will find good properties outside those ranges also.

@Caleb Heimsoth Your persistent negativity toward someone who has a different investing strategy or investing interest than you do is uncalled for. Many real estate strategies can be successful, not just the ones you like.

@Remington Lyman It's a good thing the real world doesn't follow single variable statistics, it's far more complex than that. They also live in suburbs, not just the city itself. According to that simplistic graph and view, Dayton houses should probably be free. Here's a quick look at the real world for the entire Montgomery County where Dayton is located. Clearly the real world disagrees.

Dayton now has a thriving economy and a great rental market. Personally, my wife and I have successfully done multiple flips, hold multiple rentals, many of our investor friends are doing the same.

As with any area, you can buy properties from A class to D class. Do be careful of the shysters out there who will advertise a D property as a C or even a B neighborhood. Some have a reputation of putting lipstick on the pig, then selling it as a premium product. Do your research! Some out of the area investors have been taken advantage of by those people and companies.

If you do your research, and work with competent and reputable people you can get a great ROI at a lower price point compared to most, if not all, of the coastal markets. The days of easily getting a decent house in an ok neighborhood for $10,000 are gone, but you can still get good cashflowing properties for $30-70k depending on the type of neighborhood you want to be in. If you want more appreciation, look at areas with houses for $80k and up.

@Jeshua Patrick You can buy properties off the MLS that appear to meet the 2% "rule". Those will typically be located in "D" neighborhoods, and your returns will almost inevitably be lower than projected. It's been a few years since I've been able to pickup a true 2% property in a C- or better area.@Remington Lyman

@Remington Lyman Be careful of broad sweeping comments on entire communities. Dayton has the same variety of submarkets as any other city. You can buy for high cashflow/low appreciation or you can buy for lower cashflow/high appreciation. You just need enough knowledge and skill to know where you should be investing for the type of return you want. (Some of my houses have doubled and more in the past 10 years, not 30)

@Kevin Miller There is no shortage of jobs in Dayton, only a shortage of competent people to fill them.