All Forum Posts by: Allan Hernandez

@Ryan Proffit

How did you get to the level of 8 plex? That’s a big step!

Yes, I believe once the US reaches a deal with China and other imports from other countries the price of materials should even out back to normal and that’s when I plan to strike. My personal home was $30k cheaper to build in late 2017 compared to now. Nothing went up except prices on materials

I purchased my first property! It’s nothing but dirt and grass but it’s 0.28 acres of beautiful potential. It’s in an area that’s been steadily growing for some time now and lot is zoned residential multi family. Surrounding homes are duplexes. It was a low purchase price so I felt it was an excellent opportunity.

My plan would be to build a duplex as soon as construction prices come down. The experience that I have in building my own home will potentially he help me in the construction process of building a duplex, I know what it take in regards to my own home but will be my first venture in multi family.

Since my main concern is prices of materials being really high right now I’m not ready to break ground. My question for everyone here would be how do you fund a project like this starting off and what key features should I work into the design? Any tips at all?

I ran fantasy numbers at $215k build with gross rent $2600 per month. I’d manage the property. Tenants pay utilities. It would be positive cash flow but my main concern is not paying myself at first I just want to make sure this future dream is achievable. Any advice is appreciated!

@Christopher Davis

You’re 100% right, the market is pretty terrible in my neck of the woods and would imagine it’s the same almost every where else. If I knew what I knew now during the years post recession I’d be sitting on a few properties.

But you know who benefits in any market more than anyone? They risk nothing and bring in that cash time after time? Realtors, they just sell us on the dream of having a cash flowing property while they collect the commission.

Reminds me of the scene with Matthew McConaughey and Leonardo DiCaprio in the wolf of Wall Street. They’re at the restaurant and Matthew tells him “who cares what the market does, your client thinks their rich but we are the ones taking home that cold hard commission!”

Hopefully market will turn for the better and this BP dream will come to fruition

@Nathan G. Fantastic information, thank you so much for the referral. This is what I love about the forum, somebody is always willing to share knowledge. Thank you!

Does anyone have experience both positive or negative with buying rental properties in other states simply because of affordability and value?

What strategies would you use to determine good rental areas?

Would you even recommend buying in other states?

@Corey Hawkinson

Corey, thanks for the reply. We have a home and just want to purchase and rent out the properties. Rent hacking would’ve been great if I knew about it sooner! Could’ve been in a much better situation and would’ve purchased when the market was recovering and prices were incredible!

What evidence makes you say “100% lock in this deal!” I feel like I keep running numbers and coming up with like $125 of cash flow...to me that’s a scary low number. But others say that’s golden. What’s your criteria

First off, hellos everyone. I am an extreme newbie in this world. I have been very interested in rental property investment for some time and have been doing a lot of self learning from BP, Ramsey and just about anywhere I can learn something from. I’m terrified in taking the first step, the risk makes me so nervous.

We found a duplex we are interested in that is affordable not too far from us. I have been doing all the market analytics, running spread sheets, cash flow calculators, etc. My question to the community is what made you jump and take the leap to that first deal? What gave you that confidence and how did make it happen. Is there anything you could tell your newbie self what you know now with experience?

I am a firefighter paramedic by trade and finance and investment is all new to me. I want to succeed with calculated risk! Please teach me I am a sponge! Thanks!