All Forum Posts by: Zac Mckenzie

Hey Gregg, have you read the book On Flipping Houses from J Scott published by bigger pockets. I bought it a long time ago and it came with a lot of spread sheets and data that helped us build systems to manage the types of thing I think your referent to.  

Hey Anthony how can we help?

There are many great contractors in Columbus, have you put together a budget for this scope of work? Do you have a property manager? If so they can be a great resource for property rehabs. Just remember you get what you pay for A little bit more info on your project and situation could help in providing direction for the BP community to make recommendations. 

Develop standards for for the the amount of risk you will accept and then stick to your standards. After a period time you can reevaluate your standard but you won't know which direction to go until you set and act on a baseline. 

Try and find smaller local banks or credit unions they often keep their mortgages in house and in doing so are more flexible with investors. The caveat to this is that they often prefer having relationships with those they invest with. It is more of a long play but I would start there. Maybe open up a debit or savings account or if you're able refinance a current property with them to start the relationship. I have had good luck with First Federal savings and loan if you would like to start there. Good luck  

Well stated Mitch and I think I owe you more than one beer. 

Hi Jacob,

While I do not have experience with ERA and cannot speak to their abilities as constriction project managers. I do have experience renovating duplexes in Columbus for clients and for our own holding group. At this point it seams that most of the duplex's are at least 100 years old and are in need of a major rebuilds of all the systems or have already received system updates that in a lot of cases are very suspect. Depending on your long term plan with the property you may want to investigate further into what this property not only needs right now but what it might need in the years to come. My grandpa always said "You never have the time or money to fix it right once but you will always find the time and money to fix it right twice" and its always cheaper to do it right the first time. Be cautious of the cheapest bids as they usually result in the cheapest work. Columbus can be strict with permitting and inspections so make sure you have someone competent managing that relationship as well, if you step out of line they can put the breaks on a project quick. Make sure you use the city building and zoning department as a check and balance with your contractors. After all they are there to verify life safety of future residents first and foremost and that should be aligned with your goals as well. All that said you'r making a smart move by investing in Columbus it's a great place to live and own properties just make sure that the decisions your making now are aligned with your long term goals.

We have had good luck with the First Federal (Gahanna branch). I would think that it would be beneficial to work with the same institution on the lending and Refi, if for nothing else than simplicity and prior relationship. That said all lenders offer different programs at different times with varying structures and in house points charged. Still never a bad idea to see what the market has to offer. Make sure they are offering a good fit for your current needs, and don't sacrifice a good relationship for a few dollars. The next 24 months will most likely be rocky and a good financial relationship could help you through. Good luck

Hi Alwilleed,

I feel like more information is needed if you want answers that are a little more direct. A neighborhood that is truly up and coming is possible but could be tricky for your numbers/adventure level. For example, Milo Grogan, Old Town East, King-Lincoln Bronzeville, Southern Orchards, among others may be some of the most (up and coming) but they are no secret and demand is still outpacing the supply. There are still houses in these areas that you can pick up for 100K and a 50% Delta (margin of Rehab Budget, Fixed Expenses, and Profit) is a totally attainable number depending on your skill level as a rehabber/ project manager. 

What is your strategy? (you could gain a leg up on investors if you were interested in a live in rehab)

What are your goals? ( are you just doing this on the side, or does this need to be a major source of income)

It is doable and you are looking in a great market that brings many benefits with its challenges. Think of these challenges as variables to being successful, the more you can define them the better chance you'll have at reaching your goals. 

Best of luck and nothing will serve you better than relentless hard work.