All Forum Posts by: Jake Walroth

Pretty amazing... I heard Kennedy Heights and ARV of +215k and began to question this..... I didn't realize that neighborhood was fetching those kind of numbers. Congrats and thanks for teaching me a little about my own city.

Jake 

Just out of curiosity, if you're just starting, why would you be looking in 4 different markets? 

I would suggest just the opposite, and think smaller, narrow your approach. Instead of picking 4 MSA's.....pick 4 neighborhoods. Learn the ins and out of those neighborhoods:

- what blocks are good/which are bad

-what school districts do I need to be in/is school district even important for the neighborhood 

-how's the homes access to jobs, transportation, amenities, etc

-do you have any anchors-like a university, major company, hospital, etc--- WHO IS YOUR RENTAL POOL

My overall point is to just begin thinking much more local... particularly since you're just beginning. 

Jake 

@Andrew Cheek I grew up near Oak Hills Hs, most of my family lives in Bridgetown/Green township. 

Without knowing the specifics, my only question would be, are you in Oak Hills School District? 

@Theo Hicks yea...Northside has been great for some flippers I know... but now we’ve seen some luxury multis, another brewery is going in down there was well. Can also cater to UC/Cincy state students. All of my rentals are just up the hill in Clifton, but I’m intrigued to try something in Northside. 

Jake 

There are some good HH locations in between Rookwood and XU... lower price point than the other side of 71 in HP/Oakley. East Walnut Hills/Eden Park/Obriensville might be good areas to consider as well- very close to HP/Oakley. 

HH’ing is a pretty bullet proof strategy, particularly for your first investment... you’re going to get a sub 4.5% int rt for 30 years!! And if you’re doing 3/4 unit in any of the neighborhoods you suggested, you’ll do great. Just get an inspection.... all of those neighborhoods will likely be houses around/over 100 yrs old.... Don’t be afraid! Just have inspections and perform your due diligence to the best of your abilities. 

Cheers, 

Jake 

If you’re looking in B range.... I’d consider the following hoods- some in Northern KY

- Northside

-Clifton

-Newport 

-Covington

-Bellevue

-Northside 

But as just about everyone will say, parts of the neighborhoods referenced above may dip into Cish areas, but that’s why ya need to come see them for yourself. Covington north of 10th street is Justin like OTR imo- with lower price points and still lots of room for growth. 

Northside imo is hipster heaven and getting better every day.... probably the best/most centrally located neighborhood in the city- near UC, downtown, and heavy manufacturing areas. 

I could keep going about different areas with potential in Cincy.... you just have to pick a few areas... become hyperlocal in your focus.... and start writing checks lol. 

Jake 

I like Norwood between XU - Rookwood(southern tip of Norwood), can appeal to students + streets are much nicer. 

Norwood is a city is and has been a mess for a while..... they were over budget for the year 2018 just two months into the fiscal year.

Over the Rhine is good for Airbnb-- but is already quite saturated and would be one of the first neighborhoods to stem STR's in my estimation.

Hyde Park actually doesn't have a ton of competition whenever I've checked out Airbnb options. But, Hyde Park could be tough because if you're coming to visit Cincinnati.... although HP is nice/has amenities.... it's not downtown, its a residential neighborhood, and with the purchase prices in that neighborhood, you'll need to be getting 100$/night with about 80% occupancy to make money.... and I don't think with that you'd be cashflowing all that well. If you're in HP proper, you aint finding houses under 350k... and thats low end. 

I think the neighborhoods that can be great STRs are 

OTR-- but competition is stiff... tough to stand out

Covington/Newport

Clifton

Walnut Hills

I don't know all the terms, many acronyms, and financial terms you guys are babbling on about. 

But your title, "Can I keep this up??

My guess is that unless you are making 100's of thousands of dollars/year through your W-2-..... you will not be able to continue to buy $1,000,000 primaries in the Bay Area, vacation rentals in Tahoe, or duplexes in Seattle. I understand those properties/geographies would likely continue to appreciate.... but at some point you'll need cashflow to sustain/grow.... and I don't see those types of properties/purchases translating to cashflow. 

As far as I know @Nick Colvill, this is an real estate investment forum. Buying a primary residence in an appreciating area and having a rental house for friends and family in Tahoe doesn't equate to investing. Wanting to buy a multi in Seattle just for visiting purposes doesn't sound like an investment either. It sounds like you've got plenty of $....since you can buy multiple properties in 2 of the most expensive geographies in the world. 

Buying a house in San Jose is an accomplishment in it's own right... but my initial thought, from an investment perspective, is you could have used that cash in other geographies getting you a higher return/dollar.- it seems like you're well traveled and that wouldn't scare you. ... I get the Bay Area is probably never going to collapse.... but Austin, Nashville, Raleigh, Atlanta--- all places guaranteed for similar if not better appreciation long term(yes, even the Bay Area has a ceiling)... while not having to spend $1,000,000 on a 4-2. 

I do like the Tahoe house... when I lived in Sac I wish I'd of bought up there.... from a vacation rental perspective, you have Winter goers and Summer goers... shouldn't have any seasonal gaps. 

The duplex in Seattle thing, go for it.... but at some point, don't you need some cashflow for the $$ you're investing in these expensive markets.... unless you're already wealthy... but if that's the case, why are you investing?