Engineer from Michigan

[Bryan Blancke]

Hello BP Community!

I am a new investor. I have been listening to the podcasts and reading up on real estate for 3 months now.

My initial strategy is to execute a buy and hold for cash flow with a focus on multifamily units in B class neighborhood in my general area. Areas such as Royal Oak Michigan. Things have felt slow so far and the MLS doesn't seem to be working well for me. I have analyzed many properties in my area on the MLS in various neighborhoods from C and B class. I went to view about 15 properties. So far nothing has passed my $200 cash flow criteria per my analysis, and or I am not happy with the quality of tenants of the area. Although I am not giving a passing grade on the properties in my calculations, many of them are meeting the 50% rule and the 1% rule. I don't think I am overestimating in my calculations, but perhaps I am. A simple explanation of my math is im taking average rent from rentometer.com, and my expenses are 10% repairs, 8.3% vacancy, and 10% property management. Nothing is cash flowing well with these calculations. Some were close to $200 cash flow, but I did not like the area or conditions of the properties at the price point.

I am really intrigued by Seth Williams podcast about flipping raw land. I am considering changing my strategy and focusing on starting a direct mail campaign to execute the raw land flip strategy. This will build capital which I can later put back into the cash flow  multifamily buy and hold investment strategy.