All Forum Posts by: Alaska Wagoner

@Tim Herman Thanks for your thoughts.  I was planning on house hacking, so it would be owner occupied, but yes... I think you're right about the cash on cash return.  What % do you like to see for cash on cash?  Thanks!

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Hey @Ethan Wolff, Welcome!  I'm relatively  new as well.  Sounds like you already have some good energy going.  I second what @Patrick Allen said, the next step is definitely meeting in real life.  There's nothing that motivates like your friend closing on a house between one meeting and the next! 

Was the REO going to be a flip, or what was the plan with that?

Hi Chris, @Chris Clothier, no need to apologize! I actually took your post as very informative and was honored that you cared enough to type that much :-) Thank you! 

I did team up with a realtor last week, who has already steered me away from a few more properties, and dug up a few civilians who have offered to weigh in as things come along.  

I'm definitely coming to understand what you mean by cheap not being a better investment.  What is cheap?  Do you have a cut off for things you won't touch?  

@Chris Clothier Thanks for taking the time to write such a thorough response; I'm still in the throwing-handfuls-of-darts stage when it comes to learning Memphis.  

I'm definitely leaving this deal behind, but thanks to everyone: @Lexi Teifke @Jay Hinrichs @Katie Pepin @Stephen Bighaus @John P. @Caleb Heimsoth @Chris Clothier

for talking it out with me.  I appreciate you!

@Meshael Eady can't say I know much about the wholesaling world, I would love to know how it progresses though.  

Good luck!

@Jay Hinrichs, @Katie Pepin, and @Stephen Bighaus haha 3 for 3 is pretty damning, I believe you!  This particular place is a fixer, so comps are likely higher, although I don't know how high.  Would you agree that 70k even as a tear down is too low to support 1,100 in rent? 

Thanks for weighing in- I appreciate you all!

@Jamie Rose - Thank you for your thoughts, I'll be on the lookout for that 15%! Thanks for taking the time to give feedback to a fellow Alaskan :-)

Hi Meshael,

Sounds like an exciting prospect! Do you own any rental properties currently?  My first thought is that a 7 unit complex might be a big first thing to try and bite off.  It will also require a commercial loan, which has different rules.  Here are the numbers I typically use when running my numbers:

Vacancy: 5%

Repairs: 10% (sometimes a little higher if the building is old, like before 1950)

Capex: 10%

Property management: 10%

Can you find out the rents the tenants are currently paying?  If not, look at the pictures and then compare them to SIMILAR LOOKING properties on craigslist in that zip code and check Rentometer.

Did you estimate taxes?  Exact taxes can be looked up on the accessor's website in your county. 

The ARV I have no idea since I'm not familiar with the area; A local realtor would be able to give you a better idea.

Have you talked to a lender about the requirements for a commercial loan?  

I always like to go back to my goals and my buying parameters.  I think that there a lot of good deals, but only certain deals are going to be good deals FOR YOU.  I would tweak your numbers a bit (higher budgets for repairs and capex), get more specific numbers where possible, and define what you are looking to get out of a deal.  Then go for it!

And way to go on the mailings, love that you're out there doing it!  

@Jim S. This is an interesting building, there's a lot going on and that price near the beach in SoCal is intriguing.  That being said, what are your goals in purchasing this property?  If your goal is to live in Grover Beach, learn some basic rehab and offset the costs, this could be perfect.  If you are looking for passive income or to get into flipping there might be a cleaner deal (less permitting issues for example) and better cash flow (likely out of state).  Thanks for your service, you deserve that 0% down loan!