All Forum Posts by: Henry Offiah

Hey BP,

im looking into purchasing a portfolio of properties in Danville, Champaign, and Bloomington IL.

most are SFR, a few 2s, 3s, and 4 units. total of about 20 -25 units.

I'm not familiar with the areas yet, and I want to understand if these markets are declining or staying flat.

any details you can share would be great.

Update. I have closed on this 5unit building last week. excited to get my first commercial building. now looking for the next one. 

Thanks to all for the advice and encouragement. 

@Cesar Ramirez-Fajardo yes you certainly can. you can do a quit claim deed to change the ownership, keep in mind if you do have a mortgage on it, the lender does have the right to call it due.

Thanks @Lee Ripma.Actually my goal this year was to add 2 more properties to my small portfolio. starting out last year i bought 2 rentals, and i wanted to get a 5+ unit this year or 2 sfr. i was able to buy and rehab 1 sfr in sept ending and got it rented mid oct and now closing on number 4 (the 5 unit). would love to get a 3 rd this year but will see.

@Lee Ripma thanks for that, I definitely tend to overthink things so i dont make mistakes. but I'm going.

@Simon W. yea i definitely dont plan on keeping all properties on 1 LLC.

1 more question in regards to the entities.

if each entity owns a property, can i have 1 parent entity owning all other entities?.

what kind of issues has anyone experienced with this? does tax filing become a nightmare and increae costs due to have the 1 parent llc? thoughts and advice are appreciated.

@Lee Yoder yes the basement tenant is a m2m, in fact all tenants are m2m. thanks for the recommendations.

@Lee Ripma thats a very good point, i will discuss with my insurance company to ensure things are ok going in as-is.

What has been the experience of refinancing a 4plex to pull cash out when buying at appraised value? specifically in this case where theres more income than reported. there is much room for improvement in terms of updates and reducing expenses. Generally in the SF world, its comps that drvie things, i know Residential MF is also similar. just want to see how successful others are in these terms.

@Lee Ripma thanks for the information, how do you manage to keep track of all that? i want to make sure i stay organized as that makes the difference between chaos and success imo.

@Tanvir Sattar so if you have multiple properties in one state, you still use the same llc for all? doesnt that remove the benefit of the protection from liability?

yes all units are occupied but on month to month, so looking to start fixing things up in early spring to get higher rents by the time summer rolls around.

are you familiar with west price hill, and what are your thoughts on it?

@Lee Ripma thanks for the reply. the lender still recommended a commercial loan as it aids in tax reassessment. can you give some examples of things you have experienced going wrong?

@Zachary Elliott unfortunately the fifth unit is in the basement and currently, tenant occupied. its located in west price hill.

this is my first 5/4 unit deal in cincy so not too sure what kind of issues could arise in the case of an illegal unit,

Hello BP,

I'm looking for some advice. I've got a deal under contract in Cincinnati Oh. It's a 5 plex but city officially sees it as a 4 unit because when the original owner filed the paperwork that was the classification given.

My seller tried to get a variance, but city said they wouldn't qualify. And if they tried to rezone the building it wouldn't be approved.

Has anyone experienced this? If so how did you go about getting it rezoned or is it not possible?

Seller was asking for 250k for building based on it being a 5 unit. But first appraisal from first buyer came back at 200k and mine came back at 185k within a matter of 2 months. Seller is willing to go for appraised value putting the deal at a 9+ cap.

Thanks in advance.

Hello BP,

looking to hear some advice on what others have done in this type of scenario.

i live in Indianapolis and buying my first 5 unit in Cincinnati OH (~2hrs away). 

i need to put this in an LLC obviously, but not too sure on the approach. Should I open an LLC in OH to hold the property? ive read this helps in the event i need to file an eviction. or should i use an existing LLC created in Indiana to purchase which currently holding one property or open up an entirely new LLC in IN to purchase the property in the case of any lawsuits, only that llc is affected.

the next question is opening the LLC in OH how is that going to affect things come good ol tax time?

i know there are many ways people have done this but just not too sure on the best way or most commonly used.