Posted by Bob Smith on September 06, 2006 at 03:20:22:
So you’re saying that rust belt fee management is either incompetent or corrupt?
Investing in Ohio - Youngstown, Dayton & Akron - Posted by KC
Posted by KC on September 05, 2006 at 01:05:00:
Appears to be a lot of multi-family units available in these areas under 50K with positive cash flow.
Any thoughts?
KC
Re: Investing in Ohio - Posted by Patrick S. Lawson
Posted by Patrick S. Lawson on September 05, 2006 at 19:50:55:
Unless you are going to own 20+ units you should stay away from Ohio 1-4 units. These units can be good rehab projects, but unless you have enough units to justify management it’s not going to pan out.
There are some commercial projects in Ohio that have attractive cash flow if that is your objective.
Do not jump into Ohio properties if you banking on appreciation.
Also, in the Dayton, Youngstown and Akron markets to many people are dependent on to few employers. Look at the Columbus market.
Rust Belt Investing - Posted by Sean
Posted by Sean on September 05, 2006 at 14:25:17:
Rust belt investing is not like anything most people not from here will ever see or understand. Yes, you can cashflow… but if you think you are going to autopilot 50k duplexes with management companies in a rust belt area from 4 states away… Well… lets just say I’ll be buying it delapidated and run down from the bank that took it back from you for 15k in a few years.
Re: Investing in Ohio - Posted by Mike-OH
Posted by Mike-OH on September 05, 2006 at 06:44:58:
Yes, and there are some of the worst tenants on the planet to go along with them. As for positive cash flow, most of the out of state investors that I know of are losing their butt or are already out of business.
Mike
Re: Rust Belt Investing - Posted by Sean
Posted by Sean on September 06, 2006 at 13:51:22:
No, I’m saying a 50k duplex in a rust belt, is a 50k duplex for a reason. Yes they cashflow, but you better be the hands on type if you expect to keep it filled and performing well.
There is no shortage of housing in places like this, and the quality of tenant in neighborhoods where duplexes sell for 40 or 50k is not your young upward professional.
Best management company in the world can’t guarantee your apartment won’t be vacant for months, or that you won’t have turnover annually… etc etc etc.
You go buy a 40-50k duplex in a declining rustbelt town, where populations have been on the decline for 50 years and then hire your management company to take care of it while you wash your hands of it and live many states away, and you will learn…
Lots of folks from Cali and NY are learning this lesson right now in my area…