All Forum Posts by: John Horner

Depends on what you're looking for. There will be many section 8's in these zips.

All of those zips have war zones in them except for maybe 43224, North Linden.

In any of these areas you can easily (without marketing for motivates sellers) be all in at $20k-$25k (purchase plus repair), expect $1,000 tax, $500 insurance and $600-$650/month in rent.

There are parts of North Linden where I know investors are getting as high as $800/month for a 3/1, but it has to be on a good street and in good condition.

Hope this helps!

Rents in this area are actually closer to $900 and above, but because mine is a few hundred sq ft smaller and no basement I am hoping to get a quick tenant at $825.

This will not be section 8. In Columbus I have seen most of the section 8's in the $400-$600 range.

@Jason Hartman , this will be my first property in this particular neighborhood. However, the comps in the area are in the $50k-$60k, so the neighborhood is not as bad as the low price makes it seem.

Tenant screening is definitely key in these middle/lower class neighborhoods.

I'm in contract on a 3/1 in working class neighborhood in Columbus. It has all newer wiring, roof, HVAC, H2O heater and appliances.

Purchase Price: $34,000

Closing costs: $1500

Repairs to get rent ready: $2000

Taxes are $1300/year

Insurance is $730/year.

Rents at $825/month.

14% CAP rate

34% Cash on Cash return with 20% down financing

This is awesome @Phillip Trujillo , congrats on the contracts. I was in your position about 9 months ago!

Once you get a deal or 2 the key is to automate. The more mailers you send the more time consuming it becomes. I think it's great to start out answering the calls ourselves for the first few mailers, but once you get good at it you can outsource that and save a ton of time.

Good luck getting those sold!

I tend to think the opposite, with 10 units you spread out your risk. Yes you could have 1 or 2 empty but the other 8 or 9 would cover temporarily, especially when your cash flow is MUCH higher. If you only have one that is not rented and no additional cash flow saved up then you are really stuck.

Yes it's more work, but that will be the case with anything you choose to be successful in :)

I also don't like the idea of banking on appreciation, didn't 2009 teach us anything?

Close remotely, hire a property manager and collect your checks. Better then a 0.005% cash flow... IMHO.

The question you're asking is all relative.

Is this a good return for CA... I have no idea.

Is this a good return for the rest of the county... I don't think so.

I base my rental investing on cash flow. You put down $73,000 plus your repairs, and in return are receiving $500/yr cash flow.

I think I would cash out if I were you and invest in another part of the country.

In Ohio you could buy 10 discounted single family's in working class neighborhoods and pull in $9000 in rent each month.

Option contracts do work, but you have to explain to the seller what you're doing. I like using a standard contract with a 10 day inspection period if the seller agrees. Ideally you should know what your buyers want before you get something in contract, but if no one bites within 10 days you can extinguish contract due to inspection period.

@Joel Owens and @Walt Payne are right.

I try to keep my profile pretty short and sweet, so whoever takes a look can get a quick idea of who I am and what I want out of life. I choose not to post my entire business plan in my profile for a number of reasons.

Just because someone doesn't put explicit details in their profile for you to see, doesn't mean they are just dreamers and not action takers.