All Forum Posts by: Tyler Caglia

 Thanks Jerryll!

Thanks Lizbeth, I appreciate it! I'm glad the time I took to put this together has been appreciated by so many.  

 Thanks Robert, I remember connecting with you when I was just starting out and you had said you were moving your focus towards syndications. How is that going?

They're in 43232. I have one under contract in Whitehall as well to close next week. I'm sure there are better deals out there, there always are right? Can't expect to hit a home run every time, but I'm ok with base hits for now. Had I tried to find a home run every time I would probably have 0 homes right now. I feel as though we are offering very nice homes for rent in lower-ish income areas with low crime. Working class tenants with small families mostly or elderly retired couples.

Lance, I'm glad you gained something from the post. Feel free to PM me to discuss further.

Thanks Eric! I'd say mine are in B- or C+ areas. Mostly lower-ish income, older homes, but neighborhoods are clean and people have pride in ownership. There are certainly C- and D areas in the higher crime spots, with the potential for much more cash flow but also much more risk. I do not feel comfortable buying those from a distance, and I probably wouldn't even do it locally. There are also plenty of A and B areas, but I don't see the point in investing in those areas in a low-appreciation market. I'd be more interested in those in coastal states during an economic downturn when prices are lower and a high chance of appreciation over time.

 Thanks, I appreciate it! Long way to go, just gotta keep pushing forward.

Thanks Virginia! I found that the best cashflow in the price range I was looking for seemed to be in the midwest and southeast areas of the country. I then considered other factors, like whether the state was landlord friendly, which Ohio seems to be. I then found local markets based on a number of factors. Columbus has some big draws like Ohio State, and seems to have a steady job market. There's a point to be made that many people are leaving the midwest for southern states, but I don't think that plays a huge role in a SFH in a market where appreciation over time is minimal anyways. I also looked at crime maps, trying to find markets where the high and low crime areas were easily identifiable. Columbus has a concentrated crime area that essentially runs right up the spine of the city. Most of the outskirts where I'm investing report very low crime. The only thing I found important but had to disregard so far for my property locations is school ratings. Most of the schools around my homes are 2's and 3's, which worries me. But you can't have it all. If you find that one market offers great schools over another that might be the deciding factor. Trulia, Zillow, and the others all have good stats in this. Let me know if you have any other questions or if I need to expand at all on my research process.

Thanks Nick! That is a big priority for me right now. I'm not entirely familiar with what you're suggesting. Are you referencing a portfolio loan? Or more of a private loan? I have 2 properties I'm currently trying to refinance, and a third under contract to close next week, so I'm actively trying to educate myself on the best path forward.

Jason, the full rehab only takes 6-8 weeks, so it's all kind of one phase blended together. However, these are mainly cosmetic finishes. If we got into framing/structural changes, under-slab utilities, in-wall electrical, etc. it would be a much more phased process. I have never seen any of my properties in person. I ask for detailed videos and photos of progress, and I receive very detailed quotes with material and labor separate. You could always ask your property manager to fulfill an oversight role during rehab if you wanted to, which would create a system of checks and balances. 

Caleb, looks like we'll have to agree to disagree on this one. My properties to-date are around 950 square feet, but let's go ahead and say $1,500 for paint and a month to find a tenant. That's $1,500 (paint) + $650 (mortgage pmt) + $100 (monthly PM fee) + $300 (new lease fee) + $150 (utilities). Assuming you didn't get anything from the prior tenant's security deposit for having to re-paint the home after only 2 years, you're at a loss of $2,650. I just don't see that as enough of a hurdle to lead to a long-term negative return. I find it unlikely that my tenants will turnover every 2 years, and worst case scenario I still have an asset that someone else is essentially paying for.