All Forum Posts by: Tyler Gerhold

Go for both! I initially thought it had to be one or the other but it doesn't have to be with a value-add strategy. If you have the ability to add value by increasing NOI or rehabbing or both you can access equity through refinance or HELOC and maintain a cash flowing property. You could do this by executing the BRRRR strategy or something like value add multifamily then 1031 into a bigger property to achieve more cash flow.

Another metric I recently became familiar with is Return on Equity. If you buy a cash flowing property and add value or it naturally appreciates and you don't tap into the additional equity your return on the equity in the property goes down. So if you are trying to scale (in wealth or cashflow), a great way to do so is by adding value and tapping into that equity!

Go for both! I initially thought it had to be one or the other but it doesn't have to be with a value-add strategy. If you have the ability to add value by increasing NOI or rehabbing or both you can access equity through refinance or HELOC and maintain a cash flowing property. You could do this by executing the BRRRR strategy or something like value add multifamily then 1031 into a bigger property to achieve more cash flow.

Another metric I recently became familiar with is Return on Equity. If you buy a cash flowing property and add value or it naturally appreciates and you don't tap into the additional equity your return on the equity in the property goes down. So if you are trying to scale (in wealth or cashflow), a great way to do so is by adding value and tapping into that equity!

@Evan Polaski thank you for the advice Evan! I am currently working with a broker and have come across a few for rent signs that I have been meaning to call. Have you been able to find any of these property types through wholesalers? Or do wholesale properties tend to be too dilapidated for bank financing?

@John Lenhart Thank you John, I will definitely keep my eye on that area

@Brian Garrett Thank you for your insight! I will definitely do some digging to find others discussing value add multifamily in the forums.

Hey BP! Some partners and I are looking for some multifamily properties in the 5-10 unit range in the Dayton, OH area. 

Our strategy is to find poorly managed properties slightly under market value then go in, improve management, perform minor renovation such as exterior/interior painting, landscaping and other minor cosmetic repairs, increase rents to market value, minimize expenses as much as possible and then resell in a 1-3 year timeframe. 

I assume many people have done this and are trying to do it. If so, what have been some of your hardest obstacles to overcome? What are the biggest flaws in this strategy? What has worked best for you when implementing this? Is this a sound/profitable strategy? What were some of the things you learned after completing a couple of these deals? Where are you finding these properties? Brokers? Are you funding with traditional banks?

We are relatively new investors. We have only been in the game less than a year but between 3 of us, we have already accumulated 17 units.

Any advice on this would be much appreciated! Thank you for your time! 

-Tyler

Hey BP community! I recently discovered a tenant of mine has their medical card and has been smoking in one of my units. I use the lease supplied with The Book on Managing Rental Properties By Brandon Turner. Here is what the lease says: 

Tenant shall not be permitted to, and shall not permit any family, visiting friends, dependents, guests, licensees or invitees of Tenant to grow, produce, possess, consume, use, smoke, or ingest any marijuana, cannibas or any products or ingestibles containing marijuana or cannibas in any location in, on or about the Premises; the foregoing prohibition to be absolute and without exception and shall include any growing, production, possession, use or consumption pursuant to any medical use or medical prescription, or any medical, retail or recreational marijuana activities that may otherwise be permitted under any local, state or federal laws, rules or regulations now or hereafter in effect. Tenant’s violation of this rule shall be an immediate and incurable default of this Lease and shall be cause for eviction.

Is this valid in Ohio? Can I tell my tenant she can't smoke but can use some sort of edible instead?

Thank you for your help!
Tyler

@David Uzhca

Hi David, I’m relatively new to the area. I moved here about 1.5 years ago and closed my first 4-unit back in august in West Carrollton. I’m not opposed to investing in the city especially if the right deal comes along and it aligns with my goals. Personally I avoid the West side of the city because that area does not directly align with my goals and has some additional baggage that I just don’t want to deal with.

Feel free to connect and message me. I’d be happy to see how I can help you any further.

Regards,

Tyler

@Karen O. Can I still file the eviction on my tenant even if I don't have in my lease "no guests greater than 14 days without being on the lease". What would be the reason for the eviction? (I'm a new landlord and have not evicted someone yet)

Theresa Harris, unfortunately the inherited lease has no such clause, and says nothing about guests. That's the issue I am having.