All Forum Posts by: Michael Manchester

Being able to execute. When I was able to eliminate, or at least drastically reduce, the wishful thinking and gray areas, things got a lot easier. 100 percent is much easier to execute than 98.

Hi Hannah. That is a good area. I help a lot of investors with differing levels of experience evaluate the profitability of investment properties.Please don't hesitate to reach out to me with any questions, advice is always free.

@Tonye Jack Population decline can be a concern for sure. However, if you are looking at managing a rental that is geared toward first time renters or lower income families, those seem to stay rented more than say a luxury high rise condo. In fact a lot of my clients don't look at higher end properties for their portfolio at all because of the inconsistency. Once again it comes down to goals, and how good your DSCR is looking.

Hi Tonye. I work with a lot of investors and there are quite a few of them that are all over Ohio, even though they are living out of state. For the most part they seem to be finding more deals in Cleveland, but the dollar amounts are less. The properties in Columbus seem to be a little more lucrative, although more expensive on the front end. So while I haven't actually turned any property in Ohio myself, based on the folks I talk to on a regular basis either city is a good bet right now.

I was recently having a conversation with some other real estate investors and the issue of scaling came up. All of us found that inventory was recently a big issue in being able to scale with flips, and even land seems a little scare for new construction. Of course liquidity and having enough trusted construction professionals to handle multiple projects was also an issue. It occurred to me that it may be beneficial for some of us to post issues they had scaling up, and what creative solutions were devised to achieve your goals?

For those of us that travel the country on a regular basis for work.... Chattanooga is usually a great little airport close enough to a lot of major cities in the SE that usually has cheap rates. Not super real estate related, but there it is.

Hi @Ryan Poske - those horizontal/lateral costs always catch everyone up. From a investment lending perspective it is hands down the most commonly overlooked aspect of new builds recently. It's a shame you can't tie into the old stuff like you used to be able to. I'll have to check on that here in Florida, do you know if it's local requirement to Indi?  

inventory in a lot of areas is really tight, so I've noticed a greater interest in new construction. Of course that type of project management requires a little more experience. Has anyone had good luck with their first couple of new construction builds? Any pitfalls that can be avoided that most people may not think of?

According to my research department Tennessee was the biggest in 2020, Nashville specifically. I think the large amount of migration is going to be good for markets and the country as a whole. A healthy demographic mix seems to be good for business in my experience.

If it is cash flow positive already you are in good shape. Seeing as this is your first project I am not sure you even really need a property manager at the moment unless you have a geographical challenge. Interview a couple of local handymen and set yourself up with someone you can call for things you can't do yourself. With the lot being big you can then look for a good deal on another unit and start to scale. Try not to over analyze as much as you don't want to under-analyze.