All Forum Posts by: Ryan Pyle

I just finished my 2013 numbers and am once again amazed at the validity of the 50% rule. Here are my numbers for the past several years. The number of units is the average units held throughout the year. To be clear, my expense ratio includes capex but does not include a management fee.in 2012 and 2013 I have been actively adding units which has increased my capex and repair numbers as deferred maintenance items from the new properties are addressed. The numbers do not include any initial major rehab items that are done as part of the initial purchase.

2013: 97 units, 51.3%, bought a 19 unit, an 8 unit and a 24 unit

2012: 63 units, 48.34%, bought three 8 units

2011: 54 units, 44.73%, bought a 5 unit

2010: 41 units, 40.68%

2009: 37 units, 50.02%

2008: 38 units, 40.14%

2007: 37 units, 47.63%

I expect the numbers to improve a bit over time as the new properties are stabilized. Given that I don't include a management fee, the numbers should be in the low 40%'s. I may do a "same store sales" analysis and see what the numbers look like when I only include already stabilized properties.

Hi Ryan, feel free to call me any time at 419-340-8841. I'm a full time landlord in Toledo and love to talk real estate. Good luck!

Robert, I own a lot of property in that neighborhood. It is a war zone. $17k is on the very high side for an ARV. Don't put another dime into it.

I would advise you to throw it up on Craigslist for $500 and be done with it. Otherwise the city will start fining you and your losses will grow.

Call me if you have questions about specific properties.

I am assuming you are talking about single family homes. If so, here ya go:

43560: this is Sylvania. Mostly upscale with some exceptions. I would stay away from the area North of Alexis, east of US 23.

43623: good area. Most of it is not in Toledo Public Schools which is a good thing. There is some cheaper inventory here, but as such it is probably the most competitive zip code amongst investors. Finding a truly good deal is unlikely if you are not local. Be careful that what you are buying does not require flood insurance as there are lots of little creeks that run through this area. That is what tricks many investors into thinking they got a good deal.

43613: patchy. I would make sure it is in Washington Local School district, in which case defer to the advice given above for 43623. Toledo Public is OK in this zip if you are in the Elmhurst Elementary district.

43612: on it's way down. Used to be solid working class but got hit hard in the mortgage meltdown. As such it is becoming mostly a rental area. Once that happens in Toledo the values go waaaaayyyy down. See the 43608 zip code for an example.

Let me know what other info you need. Oh yeah...I live in 43623 and invest full time in Toledo, mostly in these zips and a few others.

I'm pretty sure the title company will have to file a CTR report just like a bank. You might want to call them to verify. I could see that scaring the seller at closing and making him walk on the deal.

I know a wholesaler who drives neighborhoods and writes down telephone numbers off of For Rent signs and then calls and asks if they want to buy more properties. He built a great buyers list that way.

Thanks for the replies so far. I'm aware of the drawbacks and risks. I own three buildings (a 19 unit, a 15 unit and a 5 unit) currently with 60 amp service and have had zero problems. I got each of those buildings insured at decent premiums, but I'm also aware that at some point I will get cancelled and have to upgrade. My question isn't whether you think it's a good idea or not, my question is does anyone have any leads on carriers that are still writing 60 amp at decent rates?

Has anyone had any recent luck getting insurance for an apartment building with 60 amp electric service? I've been able to get them done in the past but am hitting a brick wall on a deal I'm doing now. I guess I should say I have one carrier than can get it done but at triple the premium I was expecting.

Thanks in advance!

We novice and intermediate investors don't come across many "seasoned investors" because they are most likely buying much larger deals than we can afford at this point in our careers. But I would bet that the "seasoned investors" that started from scratch probably did rely on various rules of thumb to evaluate smaller deals. My largest property is a 20 unit apartment building. There's not much analysis to do on such a small deal. It's not that complicated.

Secondly, the numbers are very, very important. I would argue that the main reason many newbie investors don't last isn't because they didn't pay attention to the numbers, it's because they weren't realistic with their numbers or weren't aware of all the numbers that should have been accounted for. I do business in Toledo, OH, which is where I live. I often see people fail when they try the ghetto property landlording business. They usually get the rent, vacancy, taxes and insurance right. But they are way short on the repairs part due to the fact that when ghetto properties go vacant they get vandalized and turnover costs go way up.

Just my two cents...