All Forum Posts by: Patrick Drury

@Leslie Daniely
I wouldn't buy a MTR as you first rental if you haven't owned a long term rental before. You learn a lot of operational experience by just owning 1 rental as a long-term rental. I would recommend buying a long-term rental and then a MTR if thats of interest. If you have trouble managing 1 tenant that renews once a year changing tenants every 30 days will add a lot of complexity to it for you

@Hadar Cohen
If you are looking in those areas just be aware that Maple Heights and Garfield Heights will be subject to a POS (point of sale inspection) before the title can transfer. That is something that will be important to know if you are looking to do a BRRRR deal in these areas. The POS will drag out the process and make it harder, but like anything if something is hard and people don't want to do it it can create an opportunity for the people that will put in the time and effort to see it through 

@Vinay Sanapala
I live and invest in Columbus. Section 8 has been pretty good for me here. The manager will either make or break the investment through their ability to navigate Section 8 and adapt to changes when they come up. Section 8 is always changing and they don't tell you when they change the process or the paperwork you need to fill out. That's why having a property manager that is familiar is important 

@Rachel Seymour-Newton
If you want to buy off-market deals network with wholesalers and agents in your market that source the deals you are looking for so you can get access to those opportunities. If you want to find those deals yourself thats a lot more time-intensive work. Most people either cold call, do mailers, or direct texting. In my opinion, the best method is to smile and dial

@Joshua Thang
Does the unit have a living room? I have seen this before where people call it a 2 bed, but it's really a 1 bed on the auditors and they turned the living room into a bedroom by throwing a closet in it. Same principle 

@Miguelli Fernandez
Definitely don't start working on the property till the owner moves out. That is a big can of worms. 

@Hector Espinosa
With that price range in mind, Cleveland would be a better fit

1. Neighborhood Insights: 
   I would recommend being in areas on the West Side of Cleveland like West Blvd, Cudell, Old Brooklyn, Clark Fulton, Edgewater, Jefferson, and Brooklyn Centre. The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.
   
   
   Financing: I’m planning to use conventional financing for this purchase. 
   If you can go conventional do that. The rate will be better than DSCR. I can send some recommendations through. 
   
2. Risk Mitigation: 
   Get an inspection done before buying the property so you are aware of the condition and know the age of the capex so you can plan for those things
   

@Aubrey Adams
The best time to buy was 10 years ago. There never is going to be a perfect time. If you wait around trying to time the market for the best time to buy you'll be stuck on the sidelines forever. No matter the market run your numbers and make sure it makes sense for that local area compared to what you can expect. If the returns you can expect in that market don't make sense for what you are looking for put more down to make it break even/ cashflow or look in another market where you can find that

@Evan Miller
If you are looking to add value while doing a house hack I would find something in good shape, but cosmetically outdated. If you are going FHA make sure it meets those guidelines or if it's 5% down you need to make sure it's at least habitable as in running water, functioning electricity, no major holes in the walls. Buy the property and do the work yourself if you are able. It will help you cut down on costs. YouTube is a great resource for learning how to do a lot of stuff that doesn't require a lot of skill or certifications. Some things I would recommend to someone doing a house hack and considering doing the work would be: Paint, flooring, redoing the kitchen, and bathroom. I would hire out for the trade-specific items.

In terms of specifics, look are compare rentals and sold sales comps in the area to give you an idea of what the area demands. If all the ones selling at the ARV you are aiming for of 250k (hypothetical number) have hardwoods and granite countertops I would consider adding that if thats the ARV you are aiming for

@Richard Wilkinson
If you are looking for cash flow the Midwest markets are solid like Cleveland and Columbus. In both of those markets, you can find rentals under 200k that are cashflow positive