All Forum Posts by: Michael K Gallagher

@Paul Sweetman I see similar competition here in central OH.There is almost no way to cashflow a single family home here, the demand is just too high, even in areas where they are offering tax incentives, you have to look for medium to long term rental solutions to get the revenue high enough.  You don't start to see any promising numbers unless you move into 2 units minimum.   

Welcome in @Frederick Lyons Jr if you are specifically interested in wholesaling then I'd get very clear on what your lead measures and actions you are going to do every day are, and honestly it all comes down to the consistent actions you take every day.  You know what it is you are supposed to be doing...like me I am on these forums avoiding getting on the phones...but I know I need to...its a never ending battle and process of finding out what makes you work.  

Good Luck!

I use ROI muse on a pretty daily basis and really like it, but I don't think its capable of the investor returns you are looking for.

@James Storey if only life worked in the same way..."the best data wins", wouldn't that be wonderful.  Thank you for sharing such an actionable tip. 

@John Pelaez with it being in Michigan my first thought is to understand how many grow houses you can fit on the land and underwrite it that way!  Much better revenue generator! in all seriousness what a great idea, would be interesting if you could find a way to make the business model profitable for that area...anyway to start a brewpub or something that overlooks the airstrip?

@Priya Shekhar I've never lived in Hamilton but I spent some time there about a decade ago while I was in college.  it did not seem to be any more dangerous or crime ridden than any other town in that vicinity.  I'd have to agree with @Joshua Janus though, what has you interested in hamilton?  Columbus specifically has much better underlying economics especially if you are looking to get into commercial deals.   

@Ryan Kurth this is wonderful.  I have never grown a company to that size so I  don't know how much weight my opinion should hold but if you are looking to scale but maintain efficiency and high quality of service, the first thing that comes to my mind is to go to your current residence and try to really understand what you are doing well what you are not doing well, and what you can do to make sure the foundation of your revenue...the residents...are solid and well taken care of.  

Thats just my instinct of where to start prior to growing, just make sure that foundation is solid to hold the growth and make sure that its healthy growth.  

Hey @Liam Delumpa I know its a cliche, but I have to agree with @Brandon Goldsmith and @Remington Lyman on this one.  That's really subjective to determine what areas are B/C, and specifically in Columbus when you get into those areas its very easy to have a "block by block" situation as many of these areas are changing very rapidly.  

I'd also ask what your budget is not only for rehab but for all in.  There are some substantial value add projects that have been done on small multi family in the areas surrounding downtown, and even some condo conversions, but those are $200K+ rehabs from the numbers I've seen, so the budget will play a large role in what areas are even accessible to you.     

@Candace Ly in your example above is that you are all into a deal for $150K, or thats your pre-refinance number, if this is all cash, if its hard money, if its a private loan, it doesn't matter its just acquisition plus rehab cost is the all in cost. If your project appraises after the rehab for $300K, and you take out a 75% LTV mortgage on the property for $225K, then you pay off the private lender of $150K, and you are left with the $75K of debt that you are able to go do another deal with. Now you are paying for a loan on that $75K but the idea is that the return you are getting from rent on that 75K will be more than the interest you are paying on the debt.

The equity you have in the deal is still 25% because you took out 75% of the overall value or equity of the home.  Your monthly payment on that mortgage would be based on the loan you got from your lender, and the taxes/insurance in that area.  But the Idea being that the cashflow from the rent on the unit pays for that loan.  

If you want additional breakdowns I'd suggest the BRRRR book or even there are some great youtube videos on the subject on the BP channel.