All Forum Posts by: Kris Wong

https://www.biggerpockets.com/forums/311/topics/417526-ultimate-guide---cincinnati-neighborhood-grades

Those neighborhoods are quite different in terms of demographics. Be careful in Avondale. There are parts that are starting to progress, but also some D class stuff there. I own in PR and Norwood (they're adjacent to one another). Norwood is a big area, and definitely starting to see some progress in some pockets (especially along the border with the Rookwood area). PR has been slowly coming up for years. Northside is a very unique and artsy neighborhood; it's in demand. Hyde Park is one of the richest neighborhoods in Cincinnati. It's not known for having a lot of multifamily.

@Scott Lyons I don't recall to be honest with you. It's not enough money for me to really care about a 50/50 split or 60/40, whatever.

@Rich Somers In Cincinnati - 42.

I have 3 apartment buildings in Cincinnati and we use Cincinnati Coin Laundry. My property manager uses them for all properties she manages that need this service.

Depending on how active you want to be in building your team and managing your portfolio of investment properties, you may want to consider a passive investment in multiple apartment syndications. This can be a great way to earn a nice return, with very little investment of your time.

I don't see any mention of your goals. Do you want passive income from this property? If so, you need a tenant. That lends itself to a house hack. Do you want to build up a lot of equity, quickly? That lends itself to renovating a distressed property. Do you want both? Well, then you may want to buy a distressed multifamily. Since you will be living in this property, you also need to factor in what areas you would like to live in, and what kind of properties are available in those areas. I'll throw in another scenario as well - you could rent something in your desired area, and use that $150K to buy an investment property that aligns with your goals, in whatever the best area is for that. Of course, in that scenario you'd need 20 to 25% down, depending on the property type.

First and foremost, you really need an attorney and a CPA to get good answers to these questions. However, an attorney is certainly going to tell you an entity is a must, when that's not necessarily the case. There are a lot of issues that come along with combining financing and business entities. That being said, how much risk do you really perceive from this 19 acre plot of land? Who may want to sue you? I think an umbrella policy would certainly be enough to get you started. This will give you time to research these topics more thoroughly. I will say that long term you will want to incorporate asset protection, and you do not want to use Legal Zoom to do so.

Lastly, on the surface I don't see any reason that you would tax your LLC as an S-Corp. It sounds like a holding company, not an active business.

Three things to consider in addition to the points others have made:

• If you will be using conventional financing, in order to get the best rates, you will have to close the property in your personal names. You can deed the property to an LLC after the close, but the note will remain in your personal names. If you ever want to refinance the property, you will need to deed it back to your personal names.
• You can make money in any of the markets you mentioned, or many others. What's more important is finding a strong team you trust on the ground in your chosen market. The deal size you are looking at is so small that it can't pay for you make regular trips to check on your property, so you'll be relying solely on the team you have chosen to work with.
• You need to define your goals and make sure they align with your partners'. You don't want to get 2 years into this and figure out that one of you wants to sell and the others want to hold the property indefinitely.

You will often see investors just making offers and getting properties under contract, knowing they can just walk away or renegotiate due to contingencies. Maybe you need to do this in your market. Be careful, though, because this drives sellers nuts, and you can start to create a reputation that you don't want.

In terms of Price Hill, my understanding is that the development is concentrated in the Incline District. If you can find something in the immediate area, it could make for a nice house hack.

Welcome. I am sure you will find the Cincinnati market to be much more approachable than the Seattle market in terms of price point and CoC returns.