All Forum Posts by: Brad Clarizio

Brian- I have a duplex in the hilltop that rents at $750 per side, both sides are occupied. I have considered selling it as my focus lately has been 100% SFH. If you're interested, please let me know. I have an agent that can coordinate the deal, and I can offer you management services during the transition.

If the numbers work, go for it. If it doesn't feel a bit uncomfortable, it's not the right deal! 

Loan the money from a family member if it's just a few thousand. A few months ago I needed 5k and borrowed it from a friend and paid him back $5,500 on a 30 day loan. Find someone who will do that (or something similar) and make it happen. That little bit of money you'll spend to loan the money will be pay off with one months rent. 

I get that and appreciate the perspective- clearly I'm motivated by money- it's obvious I'm not doing this for fun. It just seems like every time I turn around, something comes up that knocks down my monthly income. If it's not my taxes twice a year, it's a furnace, or a roof, or this, or that. It just seems like it never ends! I guess I just felt like July would be the first month in awhile where I'd get full rent with next to no repairs, and then boom, A/c and furnace, $3200 pissed away. 

Thanks @Ryan Murdock- I do listen to them on occasion. They are motivating, that's for sure. 

Recently, my rentals have been kicking my butt. I am up to 11, the highest I've ever owned, and in parallel, my career has gotten busier than ever (I work a full time job where significant travel is involved as well). 

I am having a hard time finding motivation lately. I'm rehabbing two properties (rentals 10 + 11), just took over a house after an eviction that is TRASHED (3k+ in repairs), and had a furnace and A/C go out at another house ($3,200 repair because of the time of year). I'm starting to feel like I'm not making any money (I am) because it's one thing after another. 

I get it- I bring a lot of this on by myself because I self manage and continue to acquire- part of me thinks I need to take a break for a year and get remotivated, but the other part of me thinks that the moment I stop, someone else gets ahead. 

I am 27 years old and want to "retire" at 35, so my goal is 20 SFH's- that will allow me to live a similar lifestyle as I do now, but have the freedom I want.

Reel me in here folks- how do you keep going when it seems like it never ends? 

$500-600 is low for Columbus, so you are likely looking in areas that warrant that kind of rent, like a C or D area. Like anything, that comes at a cost (typically poor tenant quality).

I have a duplex that is well kept here in Columbus that I paid WELL under 100k. I rent each side at $750 a month, which is my 4th lowest rent, so I typically attract C class tenants (most others are A to B). 

A duplex in a B area is going to run you 150k, and an A class will be 250k-300k. Rents should reflect that.

Feel free to reach out with any specific area questions. I am born and raised in Columbus and have all my eggs in this basket. 

Exactly as Peter said. Option 1: She doesn't want to move and pays the bill. Option 2: She doesn't care and will make you go through the eviction process (money), lose rent (money), and ultimately pay the bill (money).

Have you considered building the cost of water into the lease in the future since it is our responsibility in Ohio? I do that with a few of my properties- on the higher end ones, I make the assumption that they'll pay (I may be an idiot for assuming so). 

Flipping probably is the easiest way to gain capital, outside of just making the money through wholesaling or your FTJ. 

The issue is, very few (if any) hard money lenders will lend a "noob" money- even after I've rehabbed nearly 20 houses I've found some that have been hesitant. 

I have no concerns on taking equity out of a rental. I have 130k in the properties I pulled from today and they appraised at 185k total (just above my 30% ARV equity goal)- now I'll take that money and buy 2 more.

Now- to be clear, I got my initial capital to do rentals BY FLIPPING, but it was a much different market in 2010 when I started. I bought a condo for 25k and sold it in 33 days for 55k after 2k in flooring and paint. It doesn't work that way in Columbus now- the market is too hot. 

Hey Chris,

Welcome to BP and thanks for your service! I am an "intermediate" investor here in Columbus (5 flips and currently own 10 rentals) so I'm certainly not an expert, but here is my advice:

Home equity loans are fine- they have a decent interest rate and ultimately, it's your own money so it makes sense. The downside of course is that you incur another payment and run the risk of losing your house if your flip "flops". Also, typically you can only pull 70-80% of your equity, so assuming you have 50k in equity, you're not going to get a crazy amount out (35-40k in this example). Ultimately, not enough to conduct a killer flip.

Any reason you'd like to do a flip over obtain a rental property? Have you researched the BRRRR strategy? That is the method I used and I closed on a 125k equity loan this morning (right at work, ha!). I'll take that payment ($850 a month) and buy 2-3 houses that will bring in $2500 or so in rent and I just gave myself a $15k annual raise this morning, year after year (after a few months of locating and rehabbing properties)- something a flip can't do.

Overall, my suggestion is to find a great rental property, save some money, pick up another and eventually you'll obtain enough money to flip. But with the tax DISADVANTAGES of a flip, coupled with the fact that you don't have any equity to start, you may want to reconsider starting that way. 

Best of luck! 

Thanks for the responses @Michael Beeman and @Deanna McCormick! I have decided to pass on this unit for the time being.