All Forum Posts by: Stone Jin

@Margaret Hill Have you measured the house yourself?  Is there an unpermitted addition?  You would open a can of worms if there was added sqft without permit.

@Benjamin Kanevsky

We buy in the suburbs of Toledo Ohio. Current house I have under contract is 210k pp. no rehab and will list for 2200-2400.

Declining population in the city doesn’t mean declining in the suburbs.

Mike, didn't you recently post about the mild winters and global warming.  By 2050 the upper midwest may be the best place to spend fall/winter/spring and Alaska will be the best place for summers. 

Hence why I'm moving my equity from Phoenix to Toledo.

@Trevor Starr

Congrats on making some money in real estate and 1031 exchanging it.

I'm curious on how you are setting your goals to get 5k in passive cashflow monthly on 115K, you are looking for a 60% return year over year?

Also 115K leveraged at 75% is only about 450K purchasing power.  If you are looking for a 20 unit, your per door cost is about just 20K a door.  I haven't seen those numbers outside of rough neighborhoods in the midwest for quite some time.

I would advise to set more realistic goals since you are on a 1031 timeline.  I'm speaking from experience as I'm currently in a 1031 exchange and having a challenging time purchasing replacements.  The 45 days go by a lot quicker than you realize.

@Kyle Johnson why not do both.  You can get a 300K house in Phoenix and 100K house in Ohio.  Best of both worlds.  

This year we bought a triplex in Mesa AZ and 5 SFH in Toledo Ohio. It can be done.

It depends on what you think is a good return.  For some people it may be 5% and some 20%.  It's a good investment city for us.  

@Eli Crognale 

It really depends on what you are after.  Currently, I'm after cashflow so Ohio makes a lot more sense than Phoenix.  I have roots in Toledo so I rely on them heavily.  Phoenix now is an appreciation play and we still have a significant portfolio that is appreciating nicely.  

To give an example.  Currently I would say to get $1600 dollars in rent, in Phoenix I'd have to buy a house about 250K, in Ohio for the same $1600, I recently did one where I was all in at 150K.  Taxes are little higher in Ohio, but the returns are still quite a bit better. 

If you are trying to grow net worth, then that is a whole different discussion.

@Dan Gustavson 

We focus on the Toledo market.  I would stay away from anything that can't generate $1500 a month rent.  After years on BP, I've heard many "we bought in the wrong neighborhood stories" but I haven't come across too many we bought in a good school district with decent tenant class and are still struggling to make money stories.  On paper the guy spending 30K to buy a house that rents for $750 is beating me, but I would wager at the end of a 5 year period, we'd come out pretty close.

@Andrew Rosenberg

Though we mainly look at Sylvania, we also own in Maumee, Toledo and I have offers out in a few other suburbs.  The actual suburb doesn't matter as long as there is demand for quality homes.

@Ari Hadar almost all of our purchases require some level of rehab, generally between 15-30K (new floors, new paint, new appliances).  

We use a variety of financing from Brrr to conventional, the return vary by project by nothing under 10% CoC.

@Ari Hadar.

I can still find distressed homes on mls. The niche we buy in there are no wholesalers that I’ve come across. We buy in Toledo.