All Forum Posts by: Shilpa Matlock

@Patrick DruryYes agreed, Columbus definitely has a lot going for it! I've heard a lot of investors like going there.

@Tracy Keffer Thanks Tracy, I appreciate the info, that's definitely exciting the news about Intel. I totally agree these interest rates are making it a lot harder to cashflow. 

@Luke Jackson Are you still investing in Moorhead/Fargo? How has your experience been?

@Ryan Overcash Good to know, on the utilities and lawn care, I'm definitely leaning towards putting those under the tenants names/responsibilities. 

As for the 0.8% rule, I suppose it's okay to go lower here, knowing there is solid appreciation happening, so that makes sense. But not such strong appreciation in some of the Midwest markets, so that's a good point about requiring more than 1%, especially if you don't anticipate much appreciation. Thanks.

@Daren H.Great advice, thanks! I suppose as I get started in a market, then I will get very familiar with the numbers and the properties themselves.

@Ethan Biederman Interesting point! Yes I do see how the cheaper/lower rent properties could have thinner margins.

@Zigmunt Smigaj Got it, thanks for the advice! After everything I'm hearing, I definitely prefer not to, and to simply have them in my tenants names, unless there's some other really good reason not to. 

@Dan Rowley yes for sure, I am factoring in the higher interest rate into my numbers, so regardless of where my NOI is, my debt service is much higher than before so I am making sure it will still work, and I'm going with long term fixed rate debt.

So, if in a few years, the rates go down again, and hopefully I have more equity in the deals, and hopefully slightly higher rents, I can do a cashout refi and cashflow it really well at that point.

@Lori Williams It really sounds like Youngstown does indeed have so much potential and has so many positives going for it. And it certainly isn't as well know as Cleveland or Columbus. I also hadn't really heard of it until now, so I was curious and looked up some info. Didn't realize there's over 60K population in the city proper and over 500K in the wider metro area, so that's really quite a sizable MSA! And it sounds like you know it so well, and are super passionate about investing in the area, I think that's so cool!

@Jonathan R McLaughlin Totally agreed, there's likely a ton of deferred maintenance on many of the properties I'm looking at so I'll want to be careful in planning my expenses knowing that. As for the down payment, if I can get 20% and still have it cashflow well, I'm going to try to do that, but on the other hand, I want to be cautious about being over-leveraged as well. I did talk to a lender who can do the 20%, it's commercial/DSCR if I remember right. So I will run the numbers both ways, see what some of the other risks are, and compare. Thanks!