All Forum Posts by: Stone Jin

@Douglas Gratz I think first off you will have a challenging time finding small MF in A class neighborhoods. Most newer A class neighborhoods do not have small MF. I invest in SFH in OH in one of the best school districts in the state. The last house I bought I paid 140K, put in 20K and it rents for 1900 and should appraise for 200-220K. If I wanted to pull out 75% of it I'd nearly have all my money out. It can be done but its much harder to find.

However, this property was recently purchased in August/Sept this year.  If I look at the houses I bought in Phoenix in 2013-2014, the rents have gone up from 1000 to about 1400 and prices have gone up from 120K to about 220K.  These houses are in B+ neighborhoods.  As many have said, time is on your side, you may not have the return you want on day 1, how about day 1000?

@Xavier Marcial not if you have leases in place. Financing is all about dti and reserves.

@Leandro Zhao

We own properties 2000 miles away.  We have 2 with a property manager and 3 that I self manage.  I have a contractor/handyman there that can help me and I have software for rent collection/screening/leasing.  We buy in A school districts and rent a higher class of tenants.  So far it works.  

@Stephanie Foust Since you are house hacking, I think quality of life must have a higher consideration than just numbers.  If you are able to qualify for a half million dollar mortgage, then you probably are used to a certain standard of living.  I would lean towards the better neighborhood.  The thing is with better neighborhoods you have other options for revenue.  Short tern rentals or renting out by the room now become more plausible.  If you have a 4 bedroom house and you rent out each room at 650, the total each month is 2500 and may be considerably higher than the 1800-1900 you planned to rent it for unfurnished.  Similar numbers with Airbnb.

Can you refinance after rehab and seasoning to pay off your sister and keep the house?

@Alma Bagaoisan I've only bought off my MLS. I've watched properties on xome, hubzu, auction.com but haven't bought anything from there. Our philosophy is to limit headaches and a lot of the auction properties come with people living there.

@Alma Bagaoisan

I mostly invest in 43560, 43615 and parts of 43614, it just depends on your budget and plans.  Where I invest there is always demand due to lack of inventory.  Northwest ohio has been losing population for like 40 years however people will always want to live in nice neighborhoods with good schools.   From the forums, a lot of investor operate out of 43612, they are usually local and very hands on.  If you are attempting out of state investing into tough neighborhoods, buyer beware.   I'm looking at Perrysburg school district as well, but haven't bought yet.

My returns are acceptable for me for the amount of risk and headache I'm willing to take.  Tough neighborhoods on paper have returns in outer space but from what I've seen the reality is much different.

@Alma Bagaoisan I live in Phoenix. We buy in the suburbs of Toledo. Most of the houses we purchase have good cashflow and solid tenants. Let me know what else you would like to know

I invest there and it’s been good so far.  You have to pick the sub market carefully.  I wouldn’t invest in anything below b+ areas as the risk of frequent headaches become higher. 
If your family is willing to help then that’s one thing but just having family there may not be necessary if they do not want to be involved.  I’m sure there are better markets with job growth and population growth however the riches are in the niches as they say

@Cameron Mitchell yes house hacking is a smart first step to building wealth through real estate.