All Forum Posts by: Ari Hadar

@Roberto Filice

Youngstown is my market, it's got rough parts like any city but it's all about having a good operator & team. Reach out if you want to talk about investing in the area. I work with a good amount of out of the area investors, give my bio a quick read

Hi there! As we all know, maintenance can be a big struggle for landlords and property managers. In fact, it's usually the one topic that can relay the most negative reviews due to a lack of communication and wait times.

1) How have you improved your communication regarding maintenance coordination? Did it work? How did you approve upon it?

2) What are the #1 thing tenants complain about regarding maintenance? How did you fix it? How ARE you TRYING to fix it?

3) What are other aspects your maintenance team gets caught up in? How do you think it can be improved?

I believe we all have something to learn from everyone. Use this forum to bounce ideas off one another and hopefully get your own mind thinking on ways you can improve.

Hi @Ari Hadar, I am an agent, so I can pull the comps from the MLS.

For expenses, you can either use some estimates like (Closing costs 1-2% of purchase price, maintenance is 5-15% of gross income, vacancy 5-10%, .....) or do online research about specific numbers for this sub-market, or your agent can ask the listing agent if he/she can get this info from the seller. 

For comparing different exit strategies, I either use the bigger pocket calculators or use deal analysis spreadsheets I have to run the numbers. 

I am an investor-friendly agent, and investor who has my own properties. Let me know if you got questions and we can have a talk or coffee to go through your comments or questions.

Thanks!

@Sherief Elbassuoni , of course.. But I'm just curious to know what others might think of this deal just to see how on point or how far off base I am.  I actually purchased it for 180k with the possibility of long term buy hold in mind.  I found a lender that is willing to refinance and let me sell on a contract without pulling a due on sale clause so I think that's going to be my strategy here. 

Analyzing off market deals, if I’m correct, requires me to find the information or have the resources to find pertinent information to analyze the deal right?

Analyzing off market deals, if I’m correct, requires me to find the information or have the resources to find pertinent information to analyze the deal right?

@Ari Hadar

ARV = After Renovation Value

Use Zillow to pull comps in your market. If you are buying a C class property and renovating to B class you will want to pull B class comps. I try to find 3-5 similar properties and take an average. Or is you are working with a real estate agent ask them to help you with comps.

@Xavier Williams 1% rule is a metric for quickly screening properties. For example a 3BR 2BA house rents for $1200 in your market. The 1% rule says you should pay no more than $120,000 for this home. This is only a very rough rule, I would not recommend only using this rule to buy properties.

Here is how you can use the 1% rule. Do some research and determine the average rent for a house you want to buy. You can get a good idea using Zillow, Trulia or apartmentsdotcom. Plug in the number of bedrooms, baths, and square footage. Look at photos to get an idea of finishes; granite countertops and stainless steel appliances or Formica. Neighborhood and schools are also important. Now you have a good idea what the going rate is for the market you want to buy in. Now go back into Zillow and set up a for sale search based on the same criteria. Set price 30% below your final target. This leaves you room to get your equity back out after you Brrrr. Say your target is $1200 rent and $120,000 price set your max target price in search at $84,000. Zillow will deliver daily updates to your inbox of every property that meets your criteria. You can also tell realtors or wholesalers what you want. “Only send me deals under $84,000 for 3BR 2BA”. You can screen thousands of properties this way. I purchased my last duplex off a similar Zillow search. I have about ten searches running at any one time.

@Xavier Williams A lot depends on your personal goals. Brrrr is an active strategy. Do you want to be a hands on investor? Chasing after contractors or doing the work yourself? Ready to hustle?

I personally like Brrrr because it scales. If you find good deals and manage them correctly you can keep recycling your capital. Over time you can build a larger portfolio than if you purchased with conventional 20-25% down financing.

East Texas is a good market to start out with $100k. You will find a lot of 1% rule properties under $100k that will cash flow. Ideally look for something close to $70k that needs less than $30k in rehab. Target ARV of $125k plus so you can pull most if not all your seed capital out. AR-rent needs to be $1200-1300. Once the rehab is complete rent it out and let it season 6-9 months. Refinance to pull your seed capital out and go buy another one. The second one is easier.