All Forum Posts by: Mikael Winkler

@Justin Gottuso

From scrolling through a bit, it does seem like the consensus is possible for rent increases through renovations. Renovating is the key. You need to have reason to back up the increase.

I also think it may actually be possible to raise rents a couple hundred dollars, even. Though I believe you’d have to do it with new tenants. I’ve seen a lot of houses, in which, the tenant is paying like $600, but market rent might be $1000. Maybe that landlord liked the assurance of a longterm tenant, they were tired and fell behind on maintenance, whatever the case was. There is room to raise it. A new tenant should generally know what market rent is and, as long as quality after renovation warranted, would be fine paying market rent. If you did want to keep the same tenant, you’d probably have to raise it much slower. But, spell out for them. Market rent is x, I will be doing renovations and plan to raise it. If you stay, here’s what that will look like.

But, in general, I do think it’s easier to have the property vacant. Especially trying to rehab it.

@Denny Ramirez

Welcome to BP! Definitely exciting to begin your REI journey. Soak up as much info as you can here on the forums, listen to the podcasts, blogs, etc. I lived on here for about a year when I first began.

The BRRRR strategy is a great way to begin. And I do agree the Midwest is a solid area to focus, as there's plenty of opportunity to get into a property for significantly less than the coasts. And, through value-add renovations increase value enough to refinance and pull all your capital out. That's always the goal - to pull ALL your capital out in a refinance and have a cashflowing asset. Pulling everything out doesn't always happen, but is certainly possible in many Midwest markets.

I also agree that Columbus is a great market for that strategy, but also in general. Many of the neighborhoods around the city (Franklinton, Linden, Southern Orchards, Hilltop, Merion Village to name a few) have plenty of value-add opportunity at that lower price point you want to focus on initially. I would recommend reaching out to local professionals to get a more in-depth feel of the city. For any market you’re looking at, really. Not just Columbus.

Good luck!

@Jake Huber definitely some great information above! I would also suggest searching Central Ohio Investor Network on YouTube. We typically (pre-COVID) would meet on the third Thursday of the month at Smokehouse Brewing on Dublin Road. However, for now, the meetups have been on Zoom and are posted on YouTube. Let me know if interested, I can see how to get you added to the distro list.

Also, check out Columbus Real Estate and Money, or CREAM, on Facebook. It's a pretty vast network of RE professionals in Central Ohio.

Good luck!

@Curt Bixel

I'd be interested to see how this goes for you. I'm really in no position at this point to lend. So congrats to you on that! Definitely an accomplishment. But, I certainly agree. There is no shortage of investors that are vocal about their need for private money haha!

@Bennett Steinle

Absolutely. As long as you're prepared, you'll be fine. Good luck! Hopefully this will be the property that kick starts you in real estate!

@Bennett Steinle

That does seem pretty typical of a wholesale property. There are some things that often seem sketchy about wholesaling(ers) because, well, some are sketchy. HOWEVER, there are also good ones out there. I think you are well within your right to ask to speak to someone prior. Have someone go with you, if the person listing it won't be present (ideally a contractor to knock out two birds with one stone!). 

Also, as with any deal not just a wholesale deal, have someone, ie a Realtor or lawyer, look over ANY documents. Wholesaling can be a bit scary because it seems so untraditional, but as long as you're doing your due diligence and having a second pair of eyes looking everything over, you can find some great deals.

This really is great advice. And it's something that will most likely happen when new to real estate. It certainly has happened to me! I say this not to say that you don't need to do due diligence - you absolutely do. BUT, there will inevitably something unforeseen that pops up. It's all about how you respond. You mentioned needing to perfect how to analyze a deal. Don't necessarily get hung up on doing anything perfectly. If you're on here networking, that means you're hopefully building a great team around you. You can lean on them for help because no one is perfect! Anyone telling you you'll get perfect at any aspect of real estate investing is lying haha.

House hacking, as mentioned above, is a fantastic way to get started. Getting into a property with low down payment, and ability to increase value through renovations, is a double whammy for sure. 

@Jen Jaynes

Deciding to put yourself out there and start networking is a huge first step, so definitely be proud of that. You're already ahead of 95% of most people. Just ask as many questions as you can, read as much as you can. Stay active! 

Fantastic! At this point in your career, learning should be your primary focus. Read everything you can get your hands on, listen to podcasts, stay active on the forums. Even specific, granular questions you may have. They will get answered. 

Well, being on here is a great start to network with those in the Columbus market. @Remington Lyman is definitely a great resource, with a ton of knowledge. Something else I think would be valuable - start reading some of the local papers. The Columbus Dispatch, Columbus Business First, Columbus Underground. These are all great resources to learn more about real estate/development projects going on, but also to learn more about the city in general. The vibe, where things are happening, etc. I think you'll find there's more to Columbus than most out of towners think! Now, these publications may have a cost, but it's minuscule in comparison to the bigger picture - especially if you're serious about the city. But, I believe they also have some free content, as well.