All Forum Posts by: Gordon Starr

Yes! Its not hard to find tenants who like this three year arrangement. Then, I spend extra time helping them get settled in, doing little things they want so they stay forever, hopefully.. Also, they do the yard work, snow removal, and supply their own appliances. This couple really has the place fixed up nice.

That is the "good part" of old north Dayton. Lots of rehab jobs, a new school on Leo St., and the neighborhood is up in price and appearance so much that it has certainly improved dramatically since I bought a house at Leo and Notre Dame in 2012. That house has returned all my initial investment and going on double the initial investment. Buy and hold is a good strategy.

Theft has been an issue during the rehab stages until someone moves in.

Hi Jerry, super interesting thread!

A lot of info on the advantage of cash or leverage. In addition to the points others have made, I  buy with cash and self manage because:

You obviously don't pay interest and origination fees, but you also aren't forced to buy property insurance, flood insurance, insurance, insurance.... you get my point

You don't have to let a bank get all up in your business model, sign on endless fine print, and agree to pay them for decades

no one dictates what you need do or not do (possible exception - the IRS).

A sole proprietor with an all cash position and self management. That puts you in the driver seat for sure.

As to the Carter Ave property,

I am uploading a map of the immediate area including comps and how I rated it. It backs right up against a B- area and has seen extensive demolition and rehab work recently. The SF houses range from 20$ per square foot for a run down overgrown foreclosure up to 50$ per square foot for a mid century mansion in decent shape. All of the mls listing were vacant and needed work compared to 30 Carter which will need nothing at closing. Based on my limited but very positive experience I am recommending the pm be Janice Kemmer

Buying a property off mls and turning it into a top producing rental takes a lot expense, risk, and work. The fresh finished rental is worth more to an investor than a vacant mls in the same way as wine is more valuable than grapes. The perfect comp is at 835 per month right around the next block. Its a nice brick in a slightly better location. What I am having trouble finding comps for is what does that actually sell for in freshly rented condition? What does a turnkey company charge for that place? North of 80k, I think. Not really sure..

The buy it now price of 67k is 50$ per sq. foot stops the bidding and comes with a brand new roof before closing.. The minimum bid is 45k and the property comes as is at that price. At these prices the return is estimated at 8-11.5% COC ROI.

Open bidding till April 12 with a minimum of 45k, cash terms, as is, no reserve. COC ROI is 11.5%. Or stop the bidding now for 67k, ROI 8%, and get a brand new roof before closing. See attached neighborhood map and financial buy and hold rental analysis!

This particular place on Kathleen was built by the leader of the carpenter's guild for his own family in 1950. His grandson gives the historical account that it has railroad rails in the foundation. There will be no further bidding as it is now gone at asking price pending to the tenants.

For those interested in this type of mid-century modern restoration, they rent and sell really well when done right. I actually did three of them on Kathleen and still have two left. The city is now going on their fifth demo on this short street. It has changed the landscape. So much work going on.. I just looked at the perimeter plans for the u-building restorations there. Pretty cool!

As to Darrin's concerns on this property, well the old windows work great and look ok. Folks - don't ever replace a good working antique when you are seeking an antique look. The downspouts are gone because I like my huge splash-rocks better. They are thick and more rigid and attractive than your scrawny, limp downspout which got crushed and thrown to the curb. Lol

Seriously, though... There are always going to be people to critique your property then say you are overpriced. You can't take it personally..

I would like to thank the Careys for their considered opinions. I clearly need to remove and replace some of my advertising material with more clarity as to what is being offered. Price can also be evaluated from the income stream the property produces. These two places are being offered at a sweet spot in the rental cycle. With this deal you should not have to do anything for a long time, just invest and "turn the key".

@Christina Carey wrote   "Not all of them will be willing to pay premium prices, of course, but some will."

My guess is that Darrin is one of those who will not  : )

I look forward to meeting you,

Gordon

@darrin carey, You saw I set the price on carter at 45k. Rents for 820 per, 70 per month taxes. What do you you say the price should be? can you show me a true comp with anything approaching those numbers? Gordon

Hi bp! 

I am trying to get a fair price for a couple turnkey sfr and there is a question about pricing of turnkey property being higher than mls.

In the c neighborhoods of dayton, oh, mls prices are generally below 50, owner occupants can't get financing, flip to sell is not really feasible, freshly rehabbed properties rent quickly and for good rents and good tenants. So, you look at the rental listings - lots of rehabbed properties. Mls listings - basically none. 

Now, these places of mine have fresh rehab, fresh three year leases, and screened tenants who can easily afford the place. There is a lot of interest from investors, but I keep hearing the comps don't justify the.price. How do i arrive at a fair price when the mls has zero properties like that? 

Thanks in advance for advice. Click on my name if you want more specifics. Gordon

Be the second to bid on this cash flow play in Dayton Ohio's Shiloh neighborhood. Open bidding till April 5.