All Forum Posts by: Andrew Johnson

Darrion M. Woods To be overly general, you’ll find a lot of newer people (the most eager to chat) need/want to wholesale/flip so that they can built capital for (eventual) buy-and-hold. BRRRRRRRRRR is the notable exception but I don’t think you’ll be doing that *with* somebody. Consequently, if you’re looking around to network here it’s disproportionately newbie (as an ecosystem) so you’ll get that skew.

Not a single #WPS ? I know it’s a real estate forum...but come on... 🤣 Personally looking at deals in Conway, Maumelle, Vilonia, Cabot, etc. so maybe the circle/radius outside of the core area noted here.

Julie Marquez I can’t imagine ever wanting to do it, I’m happy to pay for it. But just for fun, look at 10% of gross rents and see how many doors you have to have to break-even for your day job. Then ask yourself if you want to be 24/7 available in case there’s an issue, burst pipes, etc. If you don’t, now it’s a business with employees, etc. And you’ll probably need an office. So you’ll have to scale up doors to cover that. Others will have 100% better opinions than mine but it shouldn’t take much effort in Excel to come up with a break-even doors-under-management minimum. Just my nickel of advice...

Padric Lynch If it’s municipal land, the answer is obvious, but when they go by I’m sure they’ll stumble on one of your signs too. So, ummmmm, yeah 🤷🏻‍♂️ And if yours are pulled out I’m sure there’s some fine for littering if there’s a separate fine for putting those up. One other thing to keep in mind is that there’s a good chance it’s not the person, just someone that they’re paying hourly to do it. Who knows, but the point is that now there’s two levels of communication and odds are you’ll get “I don’t know what you’re talking about.” I can’t imagine a “perfect” option here. More of a “pick your poison”.

Carley Corbin If there are a bunch of $50K investment condos, your solution is simple, go direct to all of the listing agents. If they’re investment condos some will have T12s, use a PM, etc. so you’ll be able to gauge to occupancy parameters. I looked in Myrtle Beach a little, it wasn’t pretty in the SFR front. Like with all STRs, manage fees hurt, taxes aren’t friendly, and expenses are (appropriately) high. High because of STR and high because of pesky salt water. Not to mention, if the $50K condos were simple money makers...there wouldn’t be a bunch for sale...

Imran Maqbool I’ll be overly general but I’ve never found it to pencil out in Destin. It barely pencils out (some of the time) in Gulf Shores. Property management isn’t cheap for vacation rentals, insurance is pricey near the ocean, Florida property taxes aren’t low, and expenses (when you pay ALL of them) are never low with vacation rents. And then you you’ll make most of your gross rents in 4-5 months and you bleed for the other 7-8 months. Which isn’t necessarily “bad” but you’d better know that going in :) The real challenge is paying ~25% of gross rents for property management in a vacation rental scenario. You might get 20% but don’t budget 10% 😬 Oh yeah, and the last 12 months (in a great economy) are going to look a lot difference if there’s any kind of “hiccup”.

Ben Sears Neither for me, but that doesn’t help :) No, never Option 2 and Option 1 seems only palatable for you based on a non-negotiated price. And can look at a good chunk of my possibilities and get way more excited if I could get it at 25% off. Again, not sure this helps move your thought process forward. So let’s take a huge step back and figure out *why* Option 2 would make a “short list” for you. Plenty of people here would RUN from Option 2 (including me) but my goals are likely different than yours. So if we look at what matters most *to you* then you can compare/contrast easier.

Brian Kraft I think what you have to start with is variables that you know: what they rent out for today, property taxes, vacancy for the area, insurance, PM fees, etc. Once you have those in you can take their maintenance, utilities, etc. and adjust them a few different ways to look at how those scenarios impact NOI. Then you can see how those align with a T3, the 2017 numbers, etc.

Eliott Harris There are plenty that hang around here on BP. The bigger challenge (in my opinion) is how you present the deals to those cash-buyers. So far my interactions with wholesalers haven’t been super awesome: ARV is way off, rehab costs are materials only, etc. I don’t mind doing my own due diligence but if the wholesaler is so far out of alignment with reality (in my estimation anyway) then creditability flys out of the window. Anyway, I’d imagine you can also hit up REIAs. Just make sure your numbers are sane, accurate, and well thought out. My three cents anyway... 🤷🏻‍♂️

Gabriel Rodriguez I invest out-of-state and it’s pretty much like being an absentee owner, just with...more risk :) You don’t intuitively know the right vs. wrong side of the tracks, you can drive by a property on the weekend, you’ll be taking a property managers work (even with documentation) that expenses are necessary, and you’ll pay for a couple of flights a year just to see the places you own. It’s all manageable but those areas all represent risk and (at the very least) am investment of time. The biggest area for you to consider is the different in absolute dollars investing in a 60 mile radius vs. out-of-state. More risk/hassle for another $20K per year is different “math” that having it for another $2K per year. You can change the actual dollar figures but larger theme still applies.