All Forum Posts by: Austin Johnson

sometimes it's that. sometimes it's the seller being in a pinch or demanding a minimal amount. there's a 13 unit here that is listed (and has been listed) at $2.1M. it's worth about $1M. the sellers need their number. hence it wont sell.

why not set up the LLC now and buy it under the LLC name?

call the county assessor's office and ask for their real estate appraiser and ask him/her.

another way to word this is "I'm looking at coloring my favorite coloring book but can't decide which color of crayon to use! help!"

Man, as long as you've done your due diligence and are indeed coloring in a coloring book and not a novel, the color doesn't matter as is 100% up to you. this is why REI is SO fascinating. look at all the colors and eliminate the ones you don't like then see what's left.

"Also, the house’s title/deed is under my Uncle’s name so I’m not sure if that affects anything"

so it's your uncle's house?

everything Will just said is spot on. I wanted to throw a comment in, when you're looking at their T12 notice if they have insurance, lol. I was showing an 11 unit the other day and the numbers seemed good. Then I noticed the seller doesn't pay for insurance. maximize cash flow I guess! needless to say this changed the real cap rate.

Across the country? man, that really is out of state! first thing I would do is contact an investor's agent locally where you want to buy. they will be able to provide insight to the market, rents and be a center piece to connections you may need moving forward. 

I would reach out to a local investor agent and ask how much it would be for them to write you up a CMA report. then it's third party research as well.

worrying about if/when the market will crash wont prevent it from crashing. prepare for the worst but still pray for the best while advancing towards your goals.
take a look at the 5 year graph for real estate prices and the S&P 500. yeah, it definitely crashed a few times. but it's wild cause if you look at the charts from left to right, they always bounce back. almost like these things ultimately work themselves out and you're better think time in market than timing the market. timing the market is a fools errand and something even Warren Buffett laughs at. if the oracle of Omaha can't predict the market (stocks or real estate) why do we bother? 

I think this is highly subjective. what CoC are we looking at with that $116? does it meet your requirements you set up? if it's $116 but still meets over 10%, personally i'm game because that's my 'magic number'. what type of appreciation can you expect long term from the property? how is the area, what class of tenant do you envision having?
quick math shows 116x12 = 1392. 6k left in the deal. so 1392/6,000 gives a CoC return of 23.2%. it might not be that magically "$200 per door" Brandon Turner seeks but that's a solid return. again, that's my personal opinion. your own standards will determine what actions to take.