All Forum Posts by: Jeremy Komer

I have a commercial space in Cincinnati 45223 and I'm having trouble estimating the rents.

It's 1050 sq ft and I was thinking $800-1000 mo base off what I see for retail space in Cincinnati.

It used to be a bar many years ago and could easily be converted back to one, is it better to renovate it as a bar and rent it out? Obviously I don't have a liquor permit but I assume that's for the Tennant to figure out.

Any suggestions?

In my opinion crypto is still speculative since it's not viewed as worth something at most establishments although this is slowly changing.

At this point it's in the same group to me as pokemon cards. It's incredibly volatile, speculative and unproven long term.

Bitcoin could go to the moon, or it could be there already we have no idea. It's a brand new thing and how it will behave long term is impossible to predict or even attempt to forecast. For that reason it's speculative or educated gambling not investing.

Realestate had hundreds of proven strategies to generate wealth long term, bitcoin doesn't.

That being said if having some bitcoin gives you joy buy some and see where it goes. But be prepared to lose large amounts of money very quickly and hope it goes to the moon.

Any suggestions or references for a rehab in Cincinnati?

I am looking at flipping a 3 bedroom in Cincinnati but need help estimating repair costs

I'll always buy/sell for the right price.

Its definitely very difficult right now to find sellers at reasonable prices. I see 3-4 family's going for 5-10% above asking cash pretty frequently in Cincinnati off the MLS.

Big companies are coming in and buying up 30-50 properties in a couple months, definitely doesn't seem sustainable and if the economy picks up I could see them all selling to put their money elsewhere for better returns.

Even off market or soon to be on market don't want to sell or know they can get top dollar with little effort.

im definitely not giving up but I can't wait for the sale to start or even a more balanced market.

You can also buy umbrella insurance that can kick in if you were to be sued.

That's easier in the early going than doing the LLC which also makes keeping expenses separate critical to keeping up the separation. Basically you have to be ultra careful to never touch the money personally.

$1 million in umbrella insurance will run about $500 a year which might be the best stop gap until you hit a lending wall and then I would call a lawyer to come up with the best strategy.

I've got an extra $50/mo in utilities for lawn care and insurance is in the mortgage payment (0.0511% about $900 a year)

Are you saying 10% of the property value for maintenance anualy or of the rent? I have it set up as 2.5% of the property value annually if expressing it as a percentage of rent is more standard I'm at 14.5%

I definitely need to budget for the plumbing then. Any tips on estimating plumbing costs? I can estimate the roof based on some quotes I have for other properties.

I have a four plex that I am in contract for but the inspection revealed galvanized steel piping from the 1930s when the place was built. The inspector did find one rust spot that looked like a possible previous leak but other that it looked ok from the outside.

Is galvanized steel piping a deal breaker for anyone? I know these pipes are probably near the end of their expected life and this would be my second multifamily so having to replumb the house would put a serious wrench in the business plan.

It also has a 25 year old roof which I intend to ask for the money to replace it.

projections below. 

Let me know what you think, how much risk is 90 year old galvanized steel piping?

@Tonye Jack

It will be very difficult to find cash flow In columbus but the property will appreciate very quickly.

I bought a condo three years ago outside dublin, lost cash flow every year ~1000 but it's up 30% in 2.5 years and it's been good for tax purposes.

Columbus is more educated than average, more renters than average, and is growing quickly.

The city is mostly new though as it's boomed in the last 20 years.

Cleveland is an older city with allot more multi-family houses, higher maintenance costs due to the age but you can definitely find good cash flow off the MLS with pretty average property appreciation. All markets are competitive right now but cleveland will definitely be less competitive than columbus.

If you plan to hold for 5+ years and can eat the short term negative cash flow for 2-3 years I would seriously consider columbus as I don't see a headwind that will slow it down soon.

If you plan to 1031 or sell in under 5 and need positive cash flow now I would focus more on cleveland.

Bond index ETF, they don't move more than maybe 2-4% up or down and return 2-3% in dividends

Not risk free but allot less risky than an index fund and better return than the maybe 1% you could get for a high yield savings.

Also if the economy were to crash they would likely increase in value by the 2-4%

Hello everyone, 

Has anyone done an 80-10-10 recently? I understand Fannie and Freddie wont allow a piggy back loan and since the minimum down payment on a 3-4 family conventional is 20% that severely limits my options now that I am looking to acquire a third investment. The last two were two years apart, one as a portfolio loan and the other FHA.

I am very conservative with my cash reserves and try to keep 6MO operating expenses in reserve.

I can afford the 20% on some of the $300K ballpark multifamily I have been seeing that I am confident could bring in a decent profit.

However that would drain most of my reserves after I also pay for the closing costs. I've heard of 80-10-10 being an option but not sure where to start on getting a loan that would allow a partially financed down payment.

I planned on doing owner occupant to qualify for the lower down payment but it doesn't appear owner occupant changes the money down.

Am I missing something?