All Forum Posts by: Amanda G.

Ha! I moved to GA from MN, and I was searching online yesterday for the GA version of the CRP. There isn't one!

I don't have this situation, so take this with a grain of salt, but I would start by finding out what the legal rules are in Florida. In Georgia, it is 60 days notice for month-to-month, but a really quick eviction process for non-payment. If your tenant is struggling with the current amount they probably are not a candidate for a step up process to market rates. 
Whatever you do, communicate clearly your expectations for how they can get their deposit back when they move out. Checklists for what to clean. I know of one successful landlord that provides a price list for any repairs they will have to do, including replacing light bulbs. BP recommends "Landlording on Autopilot" and that has a slick "cash for keys" script in it. Good luck!

We have so much of that wood paneling here. Did you pull it down or drywall over it?

You are at an advantage that you know exactly what you are looking for. I suspect your best bet is going to be driving for dollars. Look in the area you want to buy for quads. Take pictures of the ones that look unhappy, or have "for rent" signs in front of them. Look them up on your local government property website- do they have an off-site owner address? Particularly an out-of-state one? Those are your potential off-market deals.

Run your numbers with the worse case scenario. Something like rent at $1750 and plenty for cap ex. I had a similar feel on my first offer. You should feel ok about offering a lower amount after due diligience, and/or walking away if the numbers don't work out. Worst scenario if you leave is that the seller is educated that they are asking too much and someone else gets a slightly better deal. good luck!

The fine print on that site says that it is prohibited to use their info that way. Be careful!

I hear you. When I heard Brandon's 10% or more COC, I wondered how he was getting that. What I noticed from reading one of his deal analysis, is that he is calculating that with selling a property in ~5 years and collecting the appreciation. The cash flow return was significantly less.

My take away is that if the cash flow is enough to cover occasional cap ex biggies, then I would be happy with a deal. For example, if the cash flow would estimate to $200/mo, even if that was about 5% COC, I would be sure of a cushion for my estimates. I would potentially be happier with that than a smaller property that cash flowed $100/mo at 10%, because a water heater costs the same for either place and would be half a year's income if it died.

I'm not ignoring appreciation exactly, but since I am looking to buy and hold in a city with job growth, it isn't my main concern.

I'd see if you could get a contractor, either free or paid, to walk through with you during the due diligence period. See if the repairs are going to be less than 50k. If not, this house will be more expensive than a neighbor that is currently in good shape, plus the time and effort of doing the repairs. If you suspect meth, talk to an expert. Meth labs are considered biohazard areas, you really don't want to mess with one of those.

Even if it will cost less than $50k to repair, is that difference worth it to you? Does the ROI work for your goals?

Not sure about your area, but multifamily in my area requires 25% down for a conventional loan. Can you use an apartment hunting program to see other rents close by? Their pro forma says $800 in other income- is that laundry or parking or any other guess?
I'm going to guess since you are in CA you aren't familiar with the neighborhood. Google maps will let you see the street and I think it was Trulia that has a crime map function.
A big picture question: If you have $82k to invest, is this one of the best places to put it?
thanks for letting me play along.

Just to add a monkey wrench- I think there is another risk here. What if you (heaven forbid) need to start an eviction for non-payment, and someone deposits a small amount in your account? You have just "accepted" a partial payment, and started the clock again on the eviction process. Getting a third party system in the middle might be worthwhile. The owner of the place I'm buying has been using cozy.co. Maybe something like that would help protect you. good luck!