All Forum Posts by: Evan Haag

@Johann Jells it’s always a very difficult scenario. I just had this happen to me last week. I have someone delinquent several thousands from the pandemic. Finally their lease was up, so I formally terminated the lease and am now evicting because they haven’t left (allowed under CDC guidelines). They said they had another place and gave my number as a reference. I told them “I am not going to compromise my integrity on your behalf, I’m sorry.” And they responded “Well that’s on you!.” — Potential new landlord called, and I answered every question honestly and recommended against renting to them. Haven’t heard anything back from either party, but eviction court is on 11/5.

I couldn’t in good conscience pass that person on to create a problem for another. Glad to hear others feel that way too!

Originally posted by @Tanvir Sattar:

Hi Sierra,

My wife and I just purchased a home in Covington a few months back and are already eyeing another investment property in the area. I'd recommend checking out some of the streets parallel to Russell. The prices are not as high and look like easy flips.

 I definitely agree with Tanvir. If you’re willing to go south of pike street, there are definitely a few diamonds in the rough (and some in the area that have already been thoroughly improved!), but would push a little bit outside of mainstrasse.

Hi Luis,

Awesome to see someone so young getting into the real estate game. My biggest suggestion for a screening tenants would be RentPrep.com. That has been a great resource for me, and as long as your renter is willing to sign up via email and go through the process, it is a very smooth gateway to getting their credit scores as well as a criminal background check. Depending on the grade of your rental, I’d also highly recommend requiring a tenant with income that is 3x your monthly rent  and credit score of 600 (which will come back through rent prep). Income can be proved through copies of bank statements, paystubs, or the like.

Hope that helps!

Hi Sierra, 

I invest a lot in the Covington area as well and love it. If I could have a big yard, I'd be living down there myself! I've found that Mainstrasse sales right now are on the high end and going much more towards owner occupied (which means the price doesn't have to make business sense) and you're going to see pretty low returns at this point from a CAP Rate perspective. Unfortunately, I'm finding the days of 1% (and believe it or not, 2%) properties are on the way out in that North Covington area. About 5-10 blocks south, there are still plenty, but the areas are less desirable.

The other tricky part about buying a house-hack, is when you do the calculations, make sure you buy it as if you are not going to live in it at all. The reason for that is, when you leave in 1-2 years, those expenses that you may have not accounted for (management, trash, Annual Maintenance because no ones takes care of your property like yourself, etc.) will come back to bite you and turn a borderline profit into a consistent loss.

Just my two cents!

Hey Robert,

Covington is a great spot to be definitely for investment and for rentals right now. I definitely think that homes are being priced a little higher than they’re worth, but not prohibitively high.

For the price your looking at, I’d say jump on anything near Philadelphia street (close to I75). I think that area is going to do well with the new complex’s going in at 5th and Main. 

Outside of that area, at  100k you’ll have slim pickings. South of 12th st. You should be able to find a decent rental at that price, but your clientele changes significantly, and it is definitely a lower income area, but the numbers do certainly work. I just bought a 6 unit down there and it’s working out well so far.

Between 12th and Wallace woods area is street by street, so just do your due diligence, and you’ll find what you need! 

Hope that helps!

@Wes Singleton Hey Wes, Have you considered trying to put together a package deal? I understand as a first property it may be overwhelming, but it you found 2 or 3 SFR that are 40K a piece, the bank make be more likely to give you a loan on a total package. That gives them a high loan amount (more interest income), and if you can cover 20-25% of that for the down payment, they may be able to come to the table.

Hi BP members, 

I have a question that needs some expertise from the forums. I just purchased a multifamily property in the state of Kentucky, in which one of the tenants was late on their rent. Of course during the sale of the property, the owner said all tenants pay on time, etc. but he revealed at closing that one of the tenants had not paid for that month.

As written in the lease she signed with the previous owner, there can be a late fee assessed for this late rent. However, that lease is with the property owned by the previous owner's LLC.

My Question: Is there a process in which you can transfer the lease agreements from the previous owner's LLC to the current owner's? (myself).

Thanks!

Hi there! I'm in the process of acquiring a commercial multi-family property (12 units) and having trouble finding companies that will insure a 12 unit building. Does anyone have any referrals for the property in Covington Kentucky? Very close to Cincinnati. Thanks!

Thank you all for the great information. This is extremely helpful.

@Derek Carroll do you have any suggestions for searching for commercial/business lenders? I have several connections in Kentucky to do so, but in California I don't have. Very extensive network. Is Google a viable option, and then meeting face to face at first chance?

Thanks!

Hi All,

I've found a promising property in the Northern Kentucky area that has 9 units and is listed right around 200k. I've been attempting to secure financing or at least a pre-approval note, but have been having trouble finding a good "commercial" lender for this residential building. Disclaimer: I live in California, but the property will be bought under a Kentucky LLC.

I've been told both ways that the loan should originate where the signer (myself) is, and also it should originate where the collateral is. No clear answer.

Does anyone have any recommendations for apartment building / Commercial lending in the Kentucky/Cincinnati area? I'm planning 20% down, and the payment on the building is easily manageable with my salary even if all 9 units where somehow vacant at any point.

Thanks for the help!