Are there anymore Buy and Hold Investors...

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Are there anymore Buy and Hold Investors...

Darrion M. Woods
Specialist 路 Houston, TX 路 Member since 2018 路 37 posts 路 10 votes
I鈥檓 located in Houston and Everyone wants to Flip and Wholesale. I need some buddies to talk about investing in deals and fixing them up to hold for strategy.
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Mark Sewell
Investor 路 Houston, TX 路 Member since 2017 路 1k+ posts 路 871 votes
8y

Darrion, around here folks are looking at that $200K mark. ARV above that are (probably) going to be better for a flip, and ARV below that are going to be suitable for rental properties for the buy & hold crowd. Not true in all cases but a good rule of thumb.

The 1% rule is your quick & dirty yardstick for rental deals. If you can rent it each month for 1% of the money you have sunk into it (purchase plus rehab), then it is probably going to be a nice cash flow deal. For example buy for $80k, pump $20k into to get it ready to rent out, then you want to be sure you are able to get it rented for $1000/month, at least, if not more. Of course you still want to run the PITI and break out the BP calculator and all that, but this is just something simple to use on the fly. This is probably a more relevant rule of thumb than the 70% of ARV rule is anyway.

Give me some time, buddy, I'm right behind you.  I'll get into the buy & hold scene just as soon as I can.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor 路 VA 路 Member since 2015 路 21k+ posts 路 19k+ votes
    8y
    Darrion M. Woods with homes appreciating everyone is looking for the quick buck. Also where I am located Buy and hold makes no sense right now as in order to cash flow the down payment is ridiculous.
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    1Reply
  • Darrion M. Woods
    OP
    Specialist 路 Houston, TX 路 Member since 2018 路 37 posts 路 10 votes
    8y

    What about Owner Occupied Financing with small multi units?

    0Reply
  • Account Closed
    Rental Property Investor 路 Oakland, CA 路 Member since 2014 路 730 posts 路 1k+ votes
    8y
    Chris Seveney single family homes rarely cash flow (perhaps in the Midwest they do) but on the coasts, you need to make the jump to multi family to see cash flow.
    0Reply
  • Paul LaSpina
    Specialist 路 Manhattan, NY 路 Member since 2014 路 85 posts 路 12 votes
    8y

    @Darrion M. Woods

    Hey Darrion, what is it you are looking to do? are you the sponsor/operator or are you the funding?

    0Reply
  • John Thedford
    Real Estate Broker 路 Naples, FL 路 Member since 2013 路 9k+ posts 路 6k+ votes
    8y

    Look for them in the country clubs. They are the wealthy ones:) Buy and hold will make a LOT more money in the long run than assignment games. 

    0Reply
  • Mark Sewell
    Investor 路 Houston, TX 路 Member since 2017 路 1k+ posts 路 871 votes
    8y

    Darrion, around here folks are looking at that $200K mark. ARV above that are (probably) going to be better for a flip, and ARV below that are going to be suitable for rental properties for the buy & hold crowd. Not true in all cases but a good rule of thumb.

    The 1% rule is your quick & dirty yardstick for rental deals. If you can rent it each month for 1% of the money you have sunk into it (purchase plus rehab), then it is probably going to be a nice cash flow deal. For example buy for $80k, pump $20k into to get it ready to rent out, then you want to be sure you are able to get it rented for $1000/month, at least, if not more. Of course you still want to run the PITI and break out the BP calculator and all that, but this is just something simple to use on the fly. This is probably a more relevant rule of thumb than the 70% of ARV rule is anyway.

    Give me some time, buddy, I'm right behind you.  I'll get into the buy & hold scene just as soon as I can.

    2Reply
  • Darrion M. Woods
    OP
    Specialist 路 Houston, TX 路 Member since 2018 路 37 posts 路 10 votes
    8y

    Hi Guys,

    @Paul LaSpina Im looking to do a Buy-Rehab-Rent-Repeat through Owner Occupied Financing. I am buying my first two units now. I was 100K for two units. Im using a conventional loan to process the deal. 

    0Reply
  • Darrion M. Woods
    OP
    Specialist 路 Houston, TX 路 Member since 2018 路 37 posts 路 10 votes
    8y

    @Mark Sewell, Its funny I see it as the first step. I might have missed some things. I have a current deal that most people stayed away from. But it looks like Ill drive right into it.

    1Reply
  • Jackson Pontsler
    Flipper/Rehabber 路 Salt Lake City, UT 路 Member since 2016 路 211 posts 路 174 votes
    8y

    I wish buy and hold would make sense in my local market.  You're lucky to get .75% with an up front cost of at least 150K for a single family house in Utah.

    0Reply
  • Linda S.
    Investor 路 Richmond, VA 路 Member since 2016 路 1k+ posts 路 2k+ votes
    8y

    @Darrion M. Woods,

    I understand your frustration, at our local REI, it's about 90% flippers, and 10% buy and holds. I understand why there are more flippers, it's much more exciting, glamorous and the money appears quick and easy, and if you're located somewhere where real estate is expensive, it's the only rational choice... but that being said, rentals are our main focus!

    If you ever want to chat about land lording and rental rehabs, feel free to PM me!   It sounds like you're seeing opportunity where others don't, that's where a lot of the best deals are found!  good luck!

    2Reply
  • Darrion M. Woods
    OP
    Specialist 路 Houston, TX 路 Member since 2018 路 37 posts 路 10 votes
    8y

    @Linda S. Will Do! Im currently working on my game plan going in. Ill make sure to connect and hit you up!

    1Reply
  • Jessica Wygal
    Real Estate Agent 路 Cypress, TX 路 Member since 2018 路 156 posts 路 73 votes
    8y

    @Darrion M. Woods did you close on your properties yet?

    0Reply
  • Caleb Heimsoth
    Rental Property Investor 路 Durham, NC 路 Member since 2016 路 7k+ posts 路 7k+ votes
    8y
    No were all extinct
    0Reply
  • Darrion M. Woods
    OP
    Specialist 路 Houston, TX 路 Member since 2018 路 37 posts 路 10 votes
    8y
    Originally posted by @Jessica Wygal:

    @Darrion M. Woods did you close on your properties yet?

    Its been a ish show. 馃檮 

    0Reply
  • Jessica Wygal
    Real Estate Agent 路 Cypress, TX 路 Member since 2018 路 156 posts 路 73 votes
    8y

    @Darrion M. Woods ahh hell! Well I hope it cleans up soon and you get your properties.

    0Reply
  • Kevin Dong
    Flipper 路 Fort Myers, FL 路 Member since 2017 路 182 posts 路 98 votes
    8y

    I am buy and hold investor.  all the wholetailling and flipping is just to fund my buy and hold properties

    0Reply
  • Andrew Johnson
    Real Estate Investor 路 Encinitas, CA 路 Member since 2016 路 3k+ posts 路 3k+ votes
    8y
    Darrion M. Woods To be overly general, you鈥檒l find a lot of newer people (the most eager to chat) need/want to wholesale/flip so that they can built capital for (eventual) buy-and-hold. BRRRRRRRRRR is the notable exception but I don鈥檛 think you鈥檒l be doing that *with* somebody. Consequently, if you鈥檙e looking around to network here it鈥檚 disproportionately newbie (as an ecosystem) so you鈥檒l get that skew.
    2Reply
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