All Forum Posts by: Aaron Jones

@Ben Relph I sent you a private note. 

Not sure if this is the most appropriate forum but...

I have a rental with a low return on equity that I need to sell. The buyer will most likely be an owner-occupant, as the numbers don't really make sense as a rental, which is why I'm selling. What's the best strategy for getting the house sold? The tenant is month to month now. Should I get the tenant out first? Or should I try to sell with the tenant there? 

A couple notes: 

• This is an out-of-state rental (Wichita, KS), about 2.5 hrs away, and is being managed by a local property manager. 
• I do have a few items that I probably need to address to fetch top dollar for the house. Nothing that I would require the place to be vacant though. Maybe replace a few windows, and possibly a furnace. 
• This house has a mortgage. So I would have to pay the mortgage myself if I gave notice to the tenant. I can afford it, but I would rather not if it's not necessary.

Thanks again for the feedback!

@Jaysen Medhurst Great advice! Our county's property search system is not that searchable, but they are rolling out a new platform this week, i think, so hopefully they will add more useful search features. Otherwise, I'll be driving for $. 

@Javier D. On my rental, I wouldn't say that I'm emotionally attached to the house. I have kept it as long as I have because 1. I'm not sure that the value is back to where I need it to be to sell, 2. I may have to spend some $ on capex to get it sold, 3. as long as it is rented, I'm building equity as my principal balance declines, and 4. frankly, I don't really have a good plan for what to do with the proceeds yet. But, I definitely will be unloading it within the next 12 months, most likely spring '18. Thanks for your response!

@Matt Engle @Ingrid J. Great tips on networking! I will be at our next REIA meeting. And, as soon as I get my beard tamed, I'll add a profile pic!

Thanks so much for your feedback! Greatly appreciated! 

@Jaysen Medhurst BRRRR'ing a 4-plex is a great idea, but there just aren't that many in my market. Or even 3-plexs. Tons of duplexes though. I haven't come across any distressed MFH though, but maybe I'm just not looking hard enough or in the right places.

@Matt Engle @Ingrid J. On the path of networking to find potential business partners, how would you recommend that I find and cultivate these relationships? "Networking" is pretty general. Any specific tips? Should I start with investors on BP in my area? Big names, or folks like me who are just starting out? 

Last question. If I haven't done a deal yet, shouldn't I get something done to gain some cred first? I mean, there are countless guys/gals like me who would love to use RE as a platform to financial freedom but haven't actually done anything, and maybe never will. Shouldn't I differentiate myself by getting something done first?

Hi everyone.

I'm a mid-30's newb RE investor in OKC with 1 accidental rental, hoping to eventually acquire enough units to escape the rat race, hopefully within the next 3-5 yrs. I don't have a lot of capital to get started (maybe $50k if I sell my only rental, which isn't cash-flowing or appreciating), but I do have great credit and solid income. I've read a ton of books and listened to a ton of podcasts, and I have found apartment investing as the most appealing path to financial freedom. My dilemma is that I can't decide which acquisition strategy to pursue.

The way I see, I could start a couple ways:

1. Use hard money and the BRRRR method to acquire foreclosed SFR's and flip them into rentals. Do maybe 4-5 flip-to-rentals a year for the next 3 years. Then, in 3-5 years, 1031 exchange those properties into small apartments.
2. Look for master lease option opportunities now, with the intent to find value-add apartments that I can increase NOI and earn enough cash-flow to save for a down payment upon exercising the purchase option before expiration.
3. Take my $50k and buy 1 4-10 unit apartment now and save to buy more later. If I did this, I could probably get a decent 4-plex that would cash flow, but Id have to put 25% down, which eats up all my capital. Or, I go bigger and possibly structure a deal where I only put 10%, and have the seller carry a note for 10%. Problem with this is that paying off the seller-note would eat up my cash flow until paid (assuming a 5-yr note), so I wouldn't be able to put my cash flow toward the next property until after the seller note is paid.

What do you guys think? Which strategy makes the most sense for someone working ~50 hrs/wk with 2 toddlers? Obviously, each strategy has its pros and cons, just looking to get other's opinions.

Thanks in advance!