All Forum Posts by: Alec McGinn

Kevin Auyong tell me more about how you started out and built your portfolio. Sounds very impressive for 3 years. What kinds of properties do you go after?

Very cool stories everyone. It is great to be able to deliver a nice affordable house to someone while generating income as you do it. Thanks for sharing!

Rochester is a growing city because of Destination Medical Center which is a multi billion investment in town to turn it into the Silicon Valley of Medical care and research backed by Mayo Clinic. Houses that would have cost 105k five years ago are going for 180k and up today. There is a lot of wealth here and a lack of affordable housing.

I do understand how value can be added with forced equity rehabs, and you can acquire the property for low costs, but then to rehab the property you have to use capital to get the place up to renting standard. So for the time being and since I am young, wouldn’t it be better to acquire cash flowing properties that are move in ready that already have rehabbing costs fixed into the mortgage? Then I can keep my capital to buy more properties? The rat holes in my market are a lot more expensive than the ones in Cleveland lol Thank you for your responses!

I am not 100% on board with using equity to buy more investments in case, dare I say it, a 2008 happens again. It’s a great method for acquiring properties with minimal capital, but I prefer a 1038 for more doors (just my opinion).

Thanks for the responses! Not saying I wouldn’t buy rat holes down the road, but if it cash flows and it appreciates why put all that extra cash into the property? Tell me more about the kinds of cash flow you get before and after a rehab and your CAP rates. I do see what you mean with cash flow being much greater in the C and D class neighborhoods something I definitely want in my portfolio if it’s a good deal.

I always see cheap houses for sale in my market and they are complete rat holes and the realtor always says “great investment property” well my question is do the best investments always come from rehab? Wouldn’t it be better to buy fully rehabbed move in ready houses so that all of the rehab is paid for with OPM? I am a new investor with no rehab experience yet, but I would rather not have to fix up properties and instead leverage my debt for immediate cash flow. Is rehabbing ever the way to go for buy and hold real estate?(besides BRRRR)

Thanks for the responses everyone!

Hello BP, I know that accountants are extremely valuable people to have in your circle, but I find outrageous titles grab people’s attention. When do you like to meet with your accountant and how frequently to you see them? How many properties would you have to have before an accountant is a must have for saving on taxes? If I am living in the property I intend to rent can I still right off improvements and costs of purchasing the property? Any information would be helpful! Thanks!

When would you and when wouldn’t you buy title insurance?