All Forum Posts by: Anthony Phillips

Whatever you do don't get sucked into new western acquisitions nonsense.

they.

will.

find you.

I've been looking for my first investment property for a little over a year now and haven't had any luck. I'm currently looking for both fix and flip opportunities and BRRRR opportunities, hoping that I'll have better luck finding something if I broaden my criteria. I've drove around a couple different area's and jotted down addresses and owners phone numbers for my realtor to call, check Zillow daily, and check Facebook group chats for off market deals. No luck. Does anyone have any tips and tricks on finding deals? I know with today's market, a good deal is harder to find, but I'm wondering if there's another method to find deals that other investors are using. I'm eager to get in the game, just need to find something that makes sense before I pull the trigger.

 I was wondering if you had cost of capital in your equation 15k in rehab is basically some paint and carpet or luxury vinyl these days.. how about your cost for the 250k you dragged out?  5 to 8K for that ?   starting out If market is good enough just flip it make your 50k pay your tax and keep stacking your cash.. cash flow will always be there big forced appreciation can change.  people get wealthy on appreciation I know its counter intuitive to most of BP postings.  so dont focus on oh my gosh I am never going to get there at 200.00 a month per property .. because your right pretty tough and take a long time.. so if you buy in good areas with good markets that see MEANINGFUL appreciation over time thats where your going to create your wealth.

And running enough rentals to quit your day job is going to then become your new day job.. some love it some not so much.. Also if you can make enough money flipping to slowly pay cash for your rentals that can work to.. or Just start lending your cash your making and you will make pretty nice COC returns there with less work and more freedom if not right.

The trailer home thing is going to get pretty old, especially when you have same-day turnovers. I would just find an area where STRs work and are not restricted by the Govt.

The trailer home thing is going to get pretty old, especially when you have same-day turnovers. I would just find an area where STRs work and are not restricted by the Govt.

Based on what you've told us and applying my personal strategy, I would have flipped it and invested the cash into multiple cash flowing properties.

When you pay all cash for a $200,000 property, you gain the benefit of $200,000 in real estate. If the property value increases 5%, you gain $10,000 in equity.

if you split that $200,000 and invested $50,000 into four $200,000 houses, you would gain the benefit of $800,000 in real estate. If the market increases 5%, you gain $40,000 in equity. Your money is growing four times as fast by leveraging it. 

Wild variables here depending on your personal financial situation. 6 months of all operating expenses (including debt service) is very conservative. 2 months might be ok. Personally I don’t segregate “reserves” on a per property basis.