All Forum Posts by: Ozzy Smith

welcome @Charles Day to the family.  I'm a local investor and do some wholesaling as well.  If you ever want to chat hit me up.  Like @Darrin Carey mentioned there are plenty of us here

@Amanda K.

I'm going to echo what @Darrin Carey said... you have to take into consideration the prices we are paying locally compared to other parts of the the country like what @Ryan M. is dealing with.  We are not paying $350K to get 300/m cash flow.  We can hit those numbers all day long and only spend about $35K.  So if you would spend the same $350K as he is looking at you would have $3,000/m in cash flow.  There is a big difference there.  If you can't get excited about that check your pulse! If you can't find those numbers in Dayton you definitely are not looking... they are everywhere!

@Thomas S. yes I agree with you that would be the best option and if I could do that this post wouldn't be here.  The problem is that I don't have the $65K right now to do it.

@JD Martin doing owner financing might be an option that I haven't thought about before.  I have considered selling them all right now and still might but it's a hard pill to swallow since they are free and clear with so much upside and currently generating income.  Sometimes you got to step back to get a running start forward however.  As far as being a rough neighborhood it is a C-D neighborhood but not unsafe by any stretch.  I used to live in this neighborhood and never had any issues.  This is the type of area I prefer to invest in so don't let the price fool you.  It is a niche that is widely debated but it's my specialty and I do very well with it.  I constantly look for MORE properties in this neighborhood because I have a waiting list of people who WANT to live there.

@Ryan Detig I totally agree with sharpening up the credit which is what I'm doing just not there yet.  Getting a job is not the best option for me.  Being an investor is my job and I do ok at it.  I have already done over 10 wholesale deals currently, am working on a flip now, and building relationships everyday with several oos investors looking to buy all the time.  I do have a local lender that I use all the time for my flips and for transactional funding.  This is out of his box because either it is a longer term loan which is not his thing or the end is based on projection to get the money out on a refi.  Even though he 100% agrees with my numbers, strategy and everything (we talked in depth about it already) he is hesitant to do it because he already has a successful lending business and has no need to go outside of his traditional lending criteria for me.  Basically he turns and burns his money on short term loans because it is more profitable for him and I would need it longer than he likes.  That being said we are going to sit and look at the numbers next week and it is possible to do but I'm afraid it might be even more pricey than usual which is why I'm looking for other opinions from the community.

Thanks to all for the input.... keep it coming! 

Thanks @Ryan Detig for the input. I've tried that a couple of times and continue to do so every couple of months. The problem is low loan amounts. The ones currently rented are only about 20-30k each which is tough. Also this is my full time gig so in the eyes of a bank I have no income bc I always re invest the profits into more properties.  When going hard money it is still a low loan amount. I also have low credit scores due to a divorce from 3 years ago and bc I pay cash for almost everything hasn't risen high enough yet to attract the attention of a portfolio lender

I believe you can do a cash out refi (that's what it is even without an existing loan) with 12 months seasoning or usually you can get an exception from most banks at the 6 month mark with 2 appraisals supporting the value.  Then you can probably get about 70-80% of the appraised value.  I would check with Union Savings Bank on Far Hills and talk to Tamara Epstein and tell her ozzy referred you lol

Every once in a while as investors we need to take a step back and evaluate how our portfolio is doing and look at where we want to go and see if the two sides are working together the way they should.  That is what I have been doing lately.  I know where I want to go and know what it takes to get there, but where I started and what I am doing currently are not necessarily the same strategy.  I want to pose a scenario to get the communities input on what would you do

The facts

1. There are 5 SFR houses on the same street sitting side by side that you own free and clear (4x 3/1 and 1 2/1 bed/bath)

2.  3 are currently rented generating 1475/m and 2 are vacant needing total rehab 

3. As is value is 75K but if you fixed the two vacant props and minor repairs on the other 3 (total rehab 65K) would bring the total ARV to 165K and produce $3350/m in rents

4. Cash is not in your account currently to do this and you are still paying the taxes and mowing the grass

So here is the breakdown of that scenario.

Currently I have spent 50K to generate 1475/m and if factoring 50% in expenses for maintenance, management, vacancy, etc. results in a 17.7% ROI - with 25K equity not bad but....

if fixed would be 115K total spent generating 3350/m which is still 17.5% ROI but your equity now would be conservatively 50K and eliminate any cap x for years to come.

This is a C-D neighborhood.  Appreciation is pretty flat but a good working class neighborhood that is relatively safe (I personally used to live there and would again if needed)

I have other properties, and other opportunities that I believe will out perform but as always there are no guarantees.  With cash comes options, but without passive income how long will the cash last?  Do you roll the dice on your gut to do better quicker, or do you take the slow and steady with the above numbers and dig out slowly to achieve what you want and possibly miss the potentially better deal?

This is a real scenario with real numbers that I'm willing to share and looking for your opinion... there is no right or wrong answer here just the opportunity for everyone to throw in their two cents.... that isn't what most want to hear.

It's definitely tougher but not impossible 

I find these good deals all the time in this range in Ohio.  I look at Cleveland suburbs and Dayton.  If you want to talk drop me a line... I'm always happy to help

I have one.  What is the criteria?  feel free to drop me a line if you are still searching

I've used Ohio Certified and they did an excellent job... very thorough and detailed report.

www.ohiocertified.com