All Forum Posts by: Alan G.

@John Hickey John I love the strategy and am doing almost the same in my area just west of Philadelphia. I looked for a block with many board ups and foreclosures and bought all of them. Renovated everything now I control who lives there. Once the neighbors started seeing our nice homes they start fixing also.

Doesn’t happen overnight since I’m buying 1 by 1 as they come up. Although I’m never selling. By controlling most of the tenants on a block I control who lives on the block.

Love your idea.

@Alexander Ball would be happy to discuss real numbers off line. Feel free to reach out to me directly.

@Brandon Breaux You should be screening section 8 tenants the same way you screen private pay tenants. Although I generally don’t look at credit score on them.

Like private pay there are good and bad section 8. Screen and reject the same.

@Jack Nguyen we use pay your rent.com

It’s not free but you get your money within 24-48 hours. Also gives you the option of having tenant pay the $2.00 fee or you can pay.

I opt to pay the fee for tenant but if they pay by cc they must pay fee. Has great and easy to use interface.

@Ben Leybovich

Ben,

That’s probably one of the best ways to look at it I’ve ever heard. Coming from someone like you with so much multi experience.

Just getting hard to expand further.

@Eric C.

@Eric C.

Eric,

Although I can handle more operationally, the reason for the question is to expand. A couple years ago when I added 1 property it was a big deal but 1 more now doesn’t make that big of an impact.

The last paragraph of your post is what always makes me think, maybe I won’t make 500 per door but if I’m buying 30-60 in 1 shot, that’s a quick way to expand

@Amit Saini

Amit,

I generally don’t get appreciation in the area I’m in and honestly since I’m not selling, I really don’t care.

This the the area I struggle with and have thinking about changing strategies.

Alan

@Eric C.

Eric,

Yes these are actual numbers after all expenses not just estimates. I have all 3 and 4 bedroom properties and have very little turnover and since everything we buy we fully renovate our maintenance is relatively low. That being said, as the properties start to age I’m sure that number will go up.

@Tj Hines

Tj,

Thanks for the response. I ponder this all the time. Also love that value is tied to NOI in multi and maybe increasing value and selling when value is raised enough and then 1031 into another is the way to go.

Struggle with making 18 percent return on 2 mil investment or making 50 percent return on 70k investment. Maybe I should not be as focused on the percentages rather then actually monies made.

I have heard numerous times from multi family investors that if they had it to do over, they would have skipped the singles all together.

However, I just don’t see the returns in multi. I currently own just under 60 properties, all singles, all very close in proximity to each other and purchase approx 1 per month. All “c” neighborhoods. Have a great system in place for renovations since most of what I buy is distressed.

Making an avg of 500 per door after everything including debt service and my COC after financing is usually around 50 percent and need no outside investors.

I just can't get those returns on multi. I totally understand buying multi and raising NOI to increase value but I'm not looking to sell in 5 years so cash flow is really the only thing important to me.

Am I missing something? Given these returns, would you still do multi?