All Forum Posts by: Mikael Winkler

@Travis Wood

Sounds like you have a pretty good problem on your hands. Yeah, I guess the question to ask is if the equity that you'd capture would allow you to make better use than holding it in that one property - basically the highest and best use of the money. Would selling, for example, allow you to purchase multiple properties that would cashflow $250+, growing your portfolio.

Can't remember the podcast number, but there was a guest that brought up the idea of return on equity, that really got me thinking. Basically, if you have a ton of equity in a property, is that equity's best use staying in that property, or would it make more sense to utilize in another way? In their case, I believe they had a significant amount - maybe owned free and clear. So, the equity was high enough that the return they were getting was comparatively low. Not to say that's a terrible thing. It all depends on an investor's individual goals. If you want to sit back and get great cashflow, leaving equity in may be the route. If someone wants to aggressively grow their portfolio, maybe using that equity as capital to buy more is preferable. 

Either way, congrats on having $75,000 in equity to be able to be kicking that idea around! Good luck!

Definitely agree with @Daniel Judge. Typically, I would say start local, but investing in your eventual desired area may provide that motivation to get there. I personally have no experience long distance investing, but as with investing locally, and maybe more so, your team is extremely important. Having professionals (Realtor, attorney, contractor, etc) in  that market that you trust is key. If you do eventually look to do that, I would recommend the Book of Long Distance Real Estate Investing by David Greene. He's cohost of the BP podcast. From all I've heard from those who do investing long distance, that book provides a lot of invaluable advice.

@Tammy Tebben welcome! It's great you and your husband have decided to take the plunge. This is definitely a great place to learn and network. Soak up everything!

Regarding your strategy, and depending on your timeframe, perhaps begin closer to where you are now. Get a few deals under your belt to understand how the processes work and build confidence in your strategy, then look to move further south. I'm only working on my second project now, but it's crazy the amount of things you learn once you're in the thick of it. It can be a trial by fire, but I think it might be the best way to learn honestly.

I'm in Columbus, and it definitely is a great market. There is definitely plenty of opportunity for value-add through renovation in many of the neighborhoods around downtown. Solid cashflow and appreciation, as well. My wife and I bought our first place in 2017 in Merion Village - a revitalizing neighborhood in South Columbus. We house hacked and renovated the duplex and it's nearly tripled in value since then. That's just one example, but there really is a lot of opportunity here...it seems everyone from outside of Columbus, even Ohio, is realizing that too now haha!

How is the market in Lancaster? I've always wondered because I grew up in Baltimore and have thought about doing some investing outside of Columbus at some point. Lancaster has always intrigued me. I assume appreciation isn't as strong there, but it does seem like some areas are holding strong value. My strategy is the BRRRR, so I really look to add value and raise ARV enough to get all or most of my money out. It seems the cashflow would be pretty solid as long as I could hit the ARV I wanted.

Anyway, good luck to you and David on your journey! If you have any questions, don't hesitate to ask!

This is so true. As long as you have an inspection contingency, you can always walk away. When I remembered that, it became a LOT easier to feel comfortable making offers.

@Uzma Abdullah

I definitely agree Columbus is a great market. There is still plenty of opportunity for all-in sub $100k, as you mentioned. Many of the areas around downtown have been or are currently revitalizing, so cashflow is there, as well as appreciation. Industry is strong, with a diversified economic base - tech, insurance, apparel, banking, e-comm fulfillment are all represented. And the entertainment scene is growing exponentially, as well. COVID-19 notwithstanding.

I definitely recommend reaching out to local professionals for a more micro look at any market, as you said. But, though I’m biased, I feel Columbus is a great option to look at.

Good luck, and don’t hesitate to ask questions! Someone will have an answer haha

@Lee Yoder

That’s great. What a way to begin your multi family investing! You said you’ll probably sell it to roll the profits into a larger MF? Is there a size property you’re looking to attain, at which, you’d likely hold as a rental?

@David Hong

Great problem to have with $200k+ capital available! I do agree with some of the above regarding Columbus, OH. We are seeing a lot of growth, with a diversified economic and social base. And plenty of opportunity for value-add properties, especially in that 2-4 unit number you mentioned. 

As @Remington Lyman mentioned, a team is key. In your markets of interest, I'd start reaching out to professionals like Realtors and attorneys to explain your goals and learn the market. Often times, they'll be able to refer to other important members of your team - contractors, property managers, lenders, etc. Ask for referrals and previous work/experience. 

Any market you choose, if you do your due diligence up front to build that team, you'll be alright.  Good luck!  

@Joshua Culbertson

Yeah, I agree with the above. Check out Facebook. There are a handful of good local groups on there. 

@Lee Yoder

Ah, ok. Well, that's pretty good. A lot of times, inherited tenants can be an issue. Glad you haven't had to deal with that as much. How many units are in this property?

@Chloe Mayer

As mentioned above, I definitely think BRRRR would still be viable for you. It's really about the velocity of money. True, BRRRR is a great strategy for someone with little capital available. But, if you do have a lot of capital, you can really scale quickly, with the ability to do multiple projects at once potentially. Plus, being new, you'd want to maybe see how a BRRRR goes, how the processes work, before going full-scale. So, the ability to do an "introductory" BRRRR project may be a solid route.

I think it also depends on what your investing strategy will be. BRRRR investing, or any investing, in which, you're driving the project, is definitely not passive. At least until you build up systems that can operate in your absence. If it's more passive you're looking for, maybe investing in a quality fund is the way to go.

The beautiful thing about your situation, is you have options!