Is my Single Family Market too cheap? 13 Rentals, 2 flips, 4 upcoming. Advise me PLZ

[Michael Hoover]

Intro-  

Hello all, looking to connect, ask and share info with other investors around my experience level. Please critique my numbers against yours and please advise me if you see better directions than my local market.  A Very Breif self bio - 2.5 yrs in real estate, Most acquired BRRR method - 12 homes rented (4 of which are Rent to Own) - 2 homes sold, - 4 homes purchased and in line for remodel. 

          2 primary questions at the moment, 

Question 1. What interest rates are you all locking down in the past few months? My last loan was at 8.25% 20yr loan 5 yr lock through a local bank. (see below for all my loan rates over the past 2 yrs). 

Question 2. Is my markets' median price range too low to be sensible or does this give my market the gold star? ( I live in a rural area of MS, my avg appraisal After remodeling is 99k, my avg cash flow 312/mth).

I feel I am becoming quite knowledgeable with this process and all originally figured numbers seem to be working out as expected, I would just really love to connect with someone in a similar place in their journey to bounce ideas and critique possible shortcomings on my part. Please see the below additional details I would like to share in an attempt to connect with .. you.   Check out photos of our rental homes at https://www.facebook.com/MHRes...

Bio and Details- 
My name is Michael. I worked as a Subsea engineer for 10 years. I then decided the away from home life was no longer for me, saved some money and came home with $160,000 liquid cash to start business and purchased my first Single family home for investment purposes 2.5 years ago. (100k of this 160 was pulled from my 401k)

I currently own;- (13) homes that I have fully remodeled (probably over-improved) and are currently rented out.- (9) in which are traditionally rented, (4) rent to own with 2 year lease/ purchase options.- 2 homes that I have remodeled and sold (this is also my full time job/income)- 4 additional homes, cash purchased, in line for remodels, rent to own. 


I now purchase homes under 3 processes:

My FIRST process of acquiring homes is: BRRR. Buy very ugly, nonfunctional home, with personal cash and renovate with personal Cash. Once renovation complete have bank appraisal performed and cash out mortgage put against home for +/-80% of value.  Rent or Rent to own to pay mortgage while still producing positive cash flow. 

This is my full time job and only source of income. We perform every task start to finish, including electrical, plumbing, roofing, everything. ALOT of manual work performed that I do not feel I can't continue doing forever. 

                              Averages Under first Process (currently 7 homes):

         Buy Home- 6k to 43k, average of 23k    "Very ugly homes"

          Renovate- 18k- 45k, average 30k

          Time To complete- 42 to 96 days , average 68days

          Cash flow- 272-549 Average 314/month

          Cash realized with remodel done, renter and cash out bank loan in place:    -$7,786      to       +$50,390     avg.+ $12,979

           Daily income received for performed work: avg 190/day, $5,726/mth

           Equity position upon completion: 18k-57k avg 30k

My SECOND process of acquiring homes is: Buying up front with bank loan

1. Find and purchase home in, or Nearly in rent condition with a bank loan,

2. Spend personal cash to perform needed decorative improvements.

3. Rent to own to pay mortgage while still producing positive cash flow

4. Receive payback for renovations when rent to own purchase contract is fulfilled at 2 year mark.

                          Averages Under Second Process: (currently 4 homes)

      Buy Home: Purchase price 85-100k

       Money down 17-20k

      Minor Renovate: $1500-$5500

       Time to Complete: 7days to 30days avg. 18days

        Cash Flow: 331-510/month avg $421/month

       Cash realized with renter and bank loan in place: Negative - $24,747 to -$16,746, avg. -$20,746

       Daily income received performed work: avg -1152/Day

        Equity position at end: 37k-45k avg 41k

My Third process of acquiring homes is: Fix and Flip

1. Buy with personal cash and renovate with personal Cash.

2. Sell Home.

                      Averages Under Third Process: (currently only 2 homes)

     Buy Home: Purchase price 23-34k

     Full Renovate: $43k-47kTime to Complete: 91days to 110days avg. 99day

      Cash Flow: NO CASH FLOW

      Cash realized at sell: + 48k-77k avg +63K

      Daily income received performed work: avg 636/day 19k/mth

      Equity position: NO Equity


I have averaged completing 4 homes per year, 1 in which is sold to keep Yearly salary at a desired amount while still accumulating rental properties( I set my 160k that I started with as a baseline that I want to get back to each time a reno is cashed out). 

Prep questions for Consultation:

        Income; 2022= 110,000    (net worth ~1.01m)

                       2021= 110,000     (net worth ~ 600k)

                       2020= 160,000 (half year Subsea Engineer, half year Real Estate)    (Net worth 400k, personal home and 401k)

                       2019= 230,000 (Subsea Engineer)

Investments; 

         Personal home 170k value, paid in full, (MOBILE HOME with extreme improvements to the home and around the property) (hard(er) to find cash out lenders for mobile homes and bad rates!!) 

          13 rented homes

• 1.389 M value (From Loan Appraisals values)

• Currently 875k Borrowed against homes from bank loans,

•  514k equity

        4 homes purchased in line for Renovations, (No profits realized) 

• Combined purchase price = 172k

• Current estimated value = 180k

401k : 200,000(Milliman) (heavily considering pulling for investing)

Credit score: 770 

Personal household Budget: 4-6k/mth (this is running on fumes)(I currently have Zero Personal debt)

13 rental Properties; cash flow currently 3819/mth

Loans: all loans are 5year balloon amortized at 10 -20yr5.5 to 8.25% rate.