All Forum Posts by: Amy Kendall

@Account Closed Welcome to the forums! My husband and I were also working opposite schedules due to our kids but we were doing it in healthcare. I got my real estate license once we had decided that real estate investing was going to be our path to financial freedom. Initially, I only got my license to help with acquiring our own properties but then realized I could work from home and make my own schedule as a real estate agent. Your plan seems to be good. The only thing I might recommend is that if you are planning on doing flips, why not use the BRRRR method? If you are finding good deals, then this would help help you grow fast and maintain or grow your capitol. My husband and I have been buying SFR and are moving into multi now, but the BRRRR method would have helped us grow faster. Just a thought and best of luck!

@Taylor Wade Wirthlin Provo is a difficult market, our market is absorbing an average CAP of 4-5% right now (normally I see that is usually after expense ratios and CAP EX) , so it's a little rough. I bought my first one here in Utah county in 2006, almost the peak of the market then and interest rates were higher then too. If the number work, they work. A great question to ask yourself is how long are you planning to hold the property and can you make it cash flow while holding it? Utah is not a market where you should be expecting to find the 1% rule. But Utah has its benefits. It's population is expected to double in the next 30 years for example, that is at least a couple market cycles away, but regardless. When markets are hot, usually interest rates are low, when interest rates go up, markets cool a bit. We rode out the last market crash quite easily, cash flow all along the way, that was without knowing anything about analyzing. I bought one in Provo in January. I still think there are good deals to be found. You have to pay very close attention, those deals are usually gone the same day. I also think Wholesalers may be a good place to find deals, I can tell you, it's not a better deal because it's off market though, it's just another opportunity. I have not seen one deal from a wholesaler in the last 6 months that I found was below market value compared to what had sold in that area. In fact I see them asking for both sides of a transactions closing costs now, which actually makes it so you'd get a better deal most times on the mls, but regardless, those homes are another opportunity to buy. My husband and I own most of our properties here in Utah, but did just buy a 4 plex in FL for $339,000 brand new construction that property meets the 1% rule.

  So if this market feels like not the returns maybe start looking out of state to markets that are still meeting the 1% rule. Reach out if you have questions! Best of luck!

@Bernard Royal I was looking in several markets.  I flew out to Memphis last year, but just didn't feel like I found what I was looking for.  I know of other investors who had bought in the Florida market and had a good experience with this provider.  I also called a few property managers in the Ocala area and asked them about the area, the rent and location.  All the feedback I got was positive, so I decided to go for it.  I bought a few brand new townhomes here in Utah and I really like the new aspect if you can get the numbers to work.  Brand new affordable fourplexes are not easy to find, so this was one that came up and seemed to check out.  Time will tell!

@Bernard Royal My market is getting quite pricey as well, and I am looking to invest out of state as well.  I recently went under contract for a four plex in Florida.  It is a new build in Ocala and the price is $339,000.  After all our expenses are factored in including insurance, management, etc.  we will cash flow about $700/month.  It isn't a knock your socks off great deal, but it is affordable, cash flows, and is brand spanking new.  I haven't looked much in California as it really isn't known to offer these things.  I just wanted to help by giving you an example of what you could find in Florida to see if that is more appealing that what you are finding in California.  It will be my first out of state investment personally, but I know several other investors who have had good experiences so far.  Good luck and let me know if I can be of any help to you!

@John Lewis I'm not sure what the law is in Louisiana, but there are laws here that allow people to pay delinquent taxes on a property and eventually assume ownership.  I would look into this as a possibility as well, because it could make your already complicated situation a little more complicated.  Good luck sorting this puzzle out!

I'm assuming they don't carry a note on these properties.  Perhaps seller financing would be a good option for them to continue to get monthly cash flow without the headache of managing the property.  They would also get a large initial down payment.  If that won't work, then they might just have to bite the bullet and pay the taxes, which is a shame.

First off I just want to say I would start by listening to some wholesaling podcasts and reading books on the subject.

1. Correct

2. Most often and in general people use the 70% of ARV (after repair value) minus the cost of repairs, which is something else is helpful to get good at estimating.

3. There is a lot more to this  question than can be answered in one small sentence, but essentially you need an assignable purchase contract.  LOTS more details to be read about on this one. 

4. Most people do build a buyers list, but if you have a really good deal and know anyone who actually knows how to run numbers, you will be able to sell that contract quickly in this market.

5. Watch the contingencies/EM, again there is LOTS more details here than can be answered with one sentence.

I agree with you on that front. I have analyzed many deals I get from wholesalers only to find that they are selling at market value, at least this is true in Utah and Salt lake, and even Davis counties on properties I have analyzed over the last 6 months. I find that the wholesalers are not always great about the ARV of properties and now I am seeing most of them ask you to pay for sellers closing and your own closing, and at that rate, you are actually paying more for the property.

Yes, you can do a warranty deed or a quick claim deed.  Just talk with a title company and it is a pretty easy process and fairly inexpensive.

@Fradel Schaechter Sure do! 

You are unable to accurately determine your cash flow and monthly payments based on this information.  If you are assuming a loan and not refinancing then the monthly payment will be whatever the current owner is paying, which is unknown in this situation without knowing their purchase price and financing terms.  Your calculations are correct based on a PP of $200,000 with a 10% down payment to make $180,000 and getting new financing at that amount.  A 20% down payment would make the mortgaged amount $160,000 and your monthly cash flow would increase by about $108.  But I think you're right in that this property does not perform well, especially after factoring in all your additional costs.