All Forum Posts by: Tyler Weaver

The question is how tight does this deal make your finances.  So lets say it generates $200-300 a month in cash flow after all expenses.  How long does it take before that helps you pay down some of your debt or create a financial cushion?  

I would say get debt down, focus on getting cash in the door. 

Unsolicited mailers are likely just as much a result of inventory being low as anything else. On a similar note, a few years ago the foreclosure sale at the courthouse used to have 90%+ of the properties go to the bank, and the bank takes a hit on the price and offers it as an REO. Now, a lot more are being bought by investors, and less REO's are hitting the market.

Most of the lending I am seeing that is opening up is targeted towards investors.  Not speculative but for people trying to do forced appreciation.  

Definitely take them up on it. I liquidated some of my IRA this year, and am paying the penalties. With that deal mentioned, it would still be a net benefit even with early withdraw.

Whether to contribute beyond the matching is another question that is much harder to answer and requires a lot more depth of your situation, plans, etc. 

Sounds like you have it wrapped up with both parties in agreement.  A lot of state laws say you can charge the rent until you find another renter, but you are allowed to charge a marketing fee up to a certain amount to cover expenses relating to getting it rented again. 

@Nicholas Weckstein A bank may not consider tipped income until you have 2 years of track record for a loan they are going to sell from their books. Many banks might consider you for a loan they hold in their portfolio.  Usually these are a bit higher rates, and they really prefer adjustable rate loans.  Since you are in the same industry as you were previously, just a different job, I would think there would be a local bank that could work with you. 

It will be hard at that price point. The sweet spot in your market is likely sub 200k homes. With loans on these projects, the stakes go up though. 

This property would have been a success with the BRRR strategy. Maybe buy 2 a year, fix them up, rent, refi the down payment out and grow from there.

When you are in the mud so to speak. Learning, growing, making mistakes, and being uncomfortable you grow. It sounds like your father is in that situation and has the opportunity to take the new data he learned, adjust and move forward. 

@Engelo Rumora Northside is more likely to be a great area for continued capital growth. It is already well on the way and hard to work rental wise but great for major rehabs, condo conversions, and townhome construction. East end has similar opportunities. 

I think to project Price Hill as the next OTR we would need to discuss why OTR rose the way it did.  In the early 2000's the image of Cincinnati as a desirable place to live was laughable.  Cincinnati was in a few top 10 worst places articles.. This poses a problem for soap manufacturers trying to recruit top talent from outside the region.  Just a few blocks away from said manufacturer's corporate headquarters would have been a better place to buy drugs get shot than hang out. When recruiting and they show the candidate how much more house they can afford in Cinci than say NYC it would be more of a "so what" reaction. To fix this they backed developers, accelerators, and businesses.  The retail that was built on Vine was heavily supported by these accelerators etc. 

Price Hill is close to downtown, but also far away from any sort of infrastructure. It is close to downtown but very loosely connected to downtown. While OTR is pretty much fused to the downtown area, and sandwiched between both major highways.  The architecture and planning of the neighborhood is much more significant.  The existing buildings are fairly good palettes to develop into condos, retail, and mixed use developments that are currently popular. 

Cranley is from Price Hill.. That is about the extent of government interest in it. 

Much like @DL Martin's Opinion. I think it is still a great area for a high cashflow investment strategy, but banking on the whole region growing massively in a predictable period is a long shot.  

Sounds like a good plan.  There is an interesting dynamic in house hacking between finding a good place to live and it being a good income property.  If you are single and this is your first house, I would lean as close to the good investment side of things as possible.  Live there for a few years then house hack again with another low % down house.  Without rehabbing houses and building in equity this is likely the quickest way to acquire multiple properties that are producing income. 

Pretty cool that the debt changed your mindset from thinking make some money at work to how can you grow your income. 

@Mike Higgins You do not have to actually hire a property manager.  It is important that you buy with the understanding that at some point during holding this property you may want to hire one, and you want your property to cash flow if you have one in place.

The 50% rule is a guess.  On specific deals you can get actual numbers for insurance, taxes, and do better at guessing maintenance based off of how old the systems are and how much square footage of carpet, paint, how big the kitchen is for when it needs new cabinets etc.