All Forum Posts by: Amir B.

 Many.  Generic template.  Fill in the numbers as needed:

1 - PV = $100k
2 - DP = 10% = $10k
3 - Fund LLC $10k
4 - Offer Seller terms on $90k (int % and years)
5 - Hold until cumulative CF equals DP
6 - Sell LLC for 20% of appreciated PV (there's your profit)
7 - Seller still has contract with LLC, but LLC has different ownership, therefor...
8 - ...the New owner of LLC has exact same terms as the old owner, which means the exact same CF
9 - Rinse and repeat, only you now should have twice (in seed money) what you started with, so...
10 - Repeat actually means you are doubling what you started with in Step #1.
11 - Repeat again when these two reach Step #6, and you double again ( now = 4 times what you started with.
12 - Continue repeating every Step # 6, doubling the previous doubling, and you have your compounded return.

1073741824. The magic number every decision made in REI should be based on...and Albert Einstein would agree.

 That request is beyond the scope of this post. They are not all rentals. Some are flips as well. The only reason why I mentioned how many I did this year was because one poster in particular acted like investors only bought one rental a year, so it appeared they were lumping me into that category. I have been buying properties for years, so I was considering laying low for a year. 
 There are many investors that do much greater volume than myself, so I was not trying to sound like I was all that and a bag of chips.

 My wife and I bought 21 houses this year and 13 last year. We over see the rehabs and such as well, appointments with sellers, etc.

Moldy old shower in laundry room, kitchen cabinets are an eyesore, carpet not good- When someone looks at the images for $1400 they will not call.

I like the idea of allowing a dog, leave the ugly carpet and allow pets? If the pets wreck the carpet, no harm no foul.

Get a pro to take the cabinet doors off, sand, and spray them in a booth with oil based paint and reinstall with new hardware. Not white or grey but something calming- remove wall paper and paint same color.

Throw away curtains. Don't supply them.

Laundry room looks like there has been flooding. Replace flooring with same tone as kitchen and repaint the room.

Hi Amir,

The entry door and living room are very nice.  The original coved ceiling and doorbell are fantastic.  
This house has tremendous potential. Other than the flooring, you can make it look great without spending much money. And if you find hardwood under the carpet, you can fix this on a very small budget indeed.

If you're on a tight budget, most of what I'm suggesting you can do yourself.  

1. The carpet is stained and rippled throughout and should be removed. It may be clean, but it looks dirty, which is a huge turn-off. I wouldn't be surprised if you find some hardwood flooring in the living room.  This room would be lovely without the stained carpet.

This is just gross. 

2. In the den, consider removing the bar and definitely remove the cabinet near the fireplace. Perhaps apply a pickling stain the wood. In the first photo, I cleaned up the trim. The second photo shows pine like yours with a pickling stain.

3. Get rid of the out-dated curtains and replace them.

4. Again a nice coved ceiling, but it looks like the paint is peeling.  Fix it.  Replace the pendant ceiling light.  

5.  Replace the mirrors and side lights in the bathrooms.  The palm frond wallpaper isn't bad and I'd keep it.

6. Replace the bathroom vanity tops.  Wayfair has a nice selection.

7.  Remove the wallpaper, the curtain and whatever the hell that is on the wall.  Cost: $0

8. The laundry room is frightening.  This photo alone would make me take a pass on the rental.  What is going on with the shower sill and the floor?  These appear to be very simple fixes.  Sheet vinyl flooring is very inexpensive. And the tile looks dirty.

9.  This is the first thing they will notice when they drive by.  Sand and paint for $15.

10. Paint the kitchen cabinets. It's tricky to paint cabinets; have a professional do it. Remove the kitchen wallpaper.  Replace the hardware as well.

11.  Spruce up the yard.  I don't know if the grass just needs to be mowed or if those are weeds. Curb appeal is tremendously important.  

Consider xeriscaping.  Less watering and low maintenance. https://medium.com/green-horiz...

Best of luck!

@Amir B. ...this is a complex one...there seems to be some good stuff, and some bad stuff here...

The good:

It's a B neighborhood

You had a tenant stay over 5 years (which is usually a good sign)

It sounds like the property has appreciated

It sounds like you can get a PM to manage it for you

The bad:

it's vacant

you have some looming capex (though, if all it is is a $4-6k to waterproof the basement, that might not be the end of the world)

you seem to be misunderstanding gross vs. net rent income, and you also seem to be misunderstanding the principles of using leverage/debt in real estate (regardless of what you decide to do with this property, you'll want to study up on these topics) 

you paid off a mortgage that was locked at a low rate, and now rates are substantially higher

You have a LOT of money tied up in this property

The market is falling in most areas, and cash buyers are already finding good opportunities (and they will probably see even better opportunities over the next 6-12 months)...if you can get cash out of this property and use it to buy another property (or invest it elsewhere), that might be a viable course of action, but you'll want to run your numbers carefully...  you could get that cash by selling, cash-out refi, or heloc, but of course if you do a cash-out or heloc, you'll have to factor that new debt service into your calculations...

Calculate your ROE and you CoC return, and you'll probably find that they're pretty poor, and that you can get much better returns elsewhere...

Good luck!

"you seem to be misunderstanding gross vs. net rent income, and you also seem to be misunderstanding the principles of using leverage/debt in real estate (regardless of what you decide to do with this property, you'll want to study up on these topics)"

Do you mind giving me an example, please?