Investor · Joliet, IL · Member since 2015 · 3 posts · 0 votes
Hello, i am looking for tips and advice relating to buy and hold strategies. I currently own one duplex and getting ready to buy another come spring time. Any advice is appreciated
Real Estate Lender and Broker · Dallas, TX · Member since 2013 · 966 posts · 500 votes
10y
I want to make sure there is equity in the property when I close. I want to make sure I understand any repairs that will be necessary. I want to make sure I understand all the transaction costs. Is the property financeable and what type of terms are available?
I would go check out the podcasts here on the site. They definitely have an episode or two about buy and hold properties.
Also, as a new member one of the best pieces of advice I received was to set up some "Keyword Alerts" to get into conversation in your target area. It’s a great way to narrow down the site to what interests and benefits you most.
Hello, i am looking for tips and advice relating to buy and hold strategies. I currently own one duplex and getting ready to buy another come spring time. Any advice is appreciated
Can you be more specific on what type of advice you're looking for?
Hello, i am looking for tips and advice relating to buy and hold strategies. I currently own one duplex and getting ready to buy another come spring time. Any advice is appreciated
Can you be more specific on what type of advice you're looking for?
Investor · Joliet, IL · Member since 2015 · 3 posts · 0 votes
10y
The advice i am looking for is what to look for when buying a buy and hold. What do you usually think about before purchasing a property? Do you have a mental checklist and what do you try to avoid? Thanks for your time.
Real Estate Lender and Broker · Dallas, TX · Member since 2013 · 966 posts · 500 votes
10y
I want to make sure there is equity in the property when I close. I want to make sure I understand any repairs that will be necessary. I want to make sure I understand all the transaction costs. Is the property financeable and what type of terms are available?
The advice i am looking for is what to look for when buying a buy and hold. What do you usually think about before purchasing a property? Do you have a mental checklist and what do you try to avoid? Thanks for your time.
We have a written checklist (not mental):
Location- We have a location criteria before we make offers
Cash Flow/Return on Investment (ROI)- We have a Cash Flow/ROI criteria
ARV/Renovation/Equity- Most of what we purchase requires improvements so we have a criteria for the ARV required to support a potential refinance & still leave us w/ equity
We try to avoid, minimize or kill the following types of deals
Financials- Owner won't provide the required financials during the due diligence period.
Taxes- We don't have a tax criteria but we always double/triple check if we've purchased a property that has an expiring exemption. Need to understand those number as they impact cash flow. Also projecting the impact of increases in taxes on the Cash Flow/ROI criteria
Minimizing Variable Costs- Nothing kills a business more than variable costs. We want our costs to be fixed as possible. Examples of costs that can kill you if not controlled: CAPEX & Landlord paid utilities. If the remaining useful life of potential capital items is low & we can't fix it within our renovation budget we'll either kill the deal or renegotiate. If the property has heating that's not separated (owner pays for heating) we can't either separate the utilities within our budget or have a plan to do so in the future, we'll kill the deal.