All Forum Posts by: Andrew Kougl

@Patrick Murphy

10 is too many in my opinion to go down to the neighborhood level, you have already done a ton of analysis so if it helps you feel confident I believe you've proven you won't get stuck in analysis paralysis. However, if you really think about it and you've got 10 metro areas that are all viable and are just a good as each other you probably need to up your filters.

When I did all this I took it in stages, initially had approx. 25, then looking at the next data parameters whittled it to 10, then 5 then 3. If you really go down to the neighborhood level, and to do so I recommend talking to PM's, local forums here and getting agent recommendations. Then talking to people: investors, agents, PM's, lenders, contractors, it's a lot. Going to that level of research from people in the market, 3 was a good number for me. I'd recommend you do 5 max but less would be better.

All the metrics in the world unfortunately don't matter much when you can't feel confident about a team of professionals you only vet over the phone. Building personal relationships will give you a million times more confidence than a spreadsheet and I'm a spreadsheet guy. Good luck!

@Kolton ODay

Awesome start, congratulations and wishing you continued success

@Jessica Lombardo

How were you able to purchase it for 5% down? Are you living in it?

FHA is for owner occupied. So focus on where you want to live and then secondarily a market that makes sense as an investment. It makes the most sense to pick a market and stick with it as you'll be able to scale easier with a team and track record for local community lenders. Even if you physically move in 2 years, I'd recommend continuing to invest in that same spot. Multifamily house hack is a fantastic way to start.

Sounds like you've got a great mindset and realistic expectations. Good luck. Keep that hustle attitude.

@Michael Rukov

How expensive will these properties be? 3 to 5 per year is going to require a lot of capital.

@Gustavo Juarez

You typically wouldn't get conventional loans on a true BRRRR anyway so I don't think that's an issue necessarily. Have you ever BRRRR'd a property before? With that $80k you should be all-in for 75% of the ARV, so with 80k total it needs to appraise for at least $107k. Can you find something to buy AND renovate with $80k total, including a 10% margin to over estimate repairs?

@Greg Shuflin

Write out your lists of wants ie. Landlord friendly state, population minimum of x, etc. Realize the higher you spend the harder it is to cash flow (typically) as expensive markets tend to be appreciation plays, single vs multifamily, age of home, appetite for renovations, and many other factors. Figure out what you feel comfortable with and what you don't. Prioritize your key factors and input that into your search criteria. Narrow down to no more than 5 markets. Start searching BP to see if anyone invested or posts about that market, make connections, ask for referrals, start calling people in the market and begin learning. Read David Green's book on long distance investing.

No such thing as wasting your time, you have to realize what bad looks like so you can pounce on a good deal when it comes along.

@Nikki Closser

This is an awesome deal! So what are the gross rents now and what do you hope to eventually get it up to? Other than snow and lawn care, any other landlord expenses, like utilities?

@Dung Nguyen

With my analysis and based on the numbers you provided, I'm seeing cash flow of $213.18/month and based on 30k invested, an 8.5% CoC. Not a great deal, however you shouldn't lose money after the rent increase. It's the mortgage insurance that's killing you. After that's paid down and you can get rid of that it's much better.