All Forum Posts by: Alex Witte

Greetings!

I was wondering when building your buy and hold investment properties, what sort of numbers do many of you typically look for with the deals? 

I am specifically talking about cash on cash and cash flow per unit.

For example,

A duplex I am evaluating will create an expected $195 monthly cash flow per unit or $390 for the building. An expected 14% cash on cash return. 

I know it is all personal about what you are willing to accept, but I was just curious what others are looking for with their deals. I need a sanity check as to whether my expectations are set too high or aren't high enough.

Thanks in advance for the responses!  

Welcome @Andrew Kmiec! 

Thank you for your service!

I am also a rookie who has only dealt with my primary residents in the past. I've not been on bigger pockets long and have already met some great people that has led to me partnering on my first duplex! So if you do exactly what all the posts and podcasts say you will definitely be successful. 

Just remember not to get analysis paralysis. Focus on that first deal. 

If you are interested in buy and hold then I recommend using the 1% rule starting off and not faltering from it. 

Welcome! 

Thanks everyone! I contacted the owner and he is indeed willing to sell. We are negotiating. His current asking price makes the property not meet the 1% rule. He is using the cap rate as the way to analyze the deal. 

Again I appreciate the input!  

@Pat Parrillo I appreciate the comments and questions! 

I was probably a little ambitious when I specifically stated "buy and hold" in the "$0 to $500k" range. I have knowledge of the 1% / 2% rule and realize in this area that $5000 or $10000 for rent from a single tenant is absolute ludicrous. 

I am specifically focusing my first few deals to be the $80-$110k and focus on the 1% rule(I obviously hope for 1.5% or 2%). 

With my current full time job - cash flow at these levels will not be an issue. I hope to find my first few deals to increase my cash flow and target larger deals like you stated with multi units. Ideally with the pricier SFH I would do more of a Fix an Flip strategy. I worked in construction prior to engineering school and I have the skills necessary to do a Fix and Flip without the need for an external contractor.

All of the blog posts/podcasts state to be specific so I was trying to narrow the scope of my goals. 

It's hard when you want to do it all :D lol

Hello fellow newbie! I just joined BP and am in the same boat as you! 

Welcome aboard. So far my experience here has been top notch. 

So I don't have a company name, LLC, or website for that matter(I am just starting out. I only have 1 property) and I want to cold call on a lead.

Side note: this house isn't listed for sale. It is listed for rent. lol I just figure the owner may be willing to sell if the price is right. 

How should I go about the first phone call to the owner? 

I haven't done many deals and am not sure how to go about it. 

Do I simply say, "hello my name is Alex and I am a real estate investor interested in buying this home. would you be willing to meet with me?" 

Thanks for the warm welcomes @Ramon Jenkins and @Jorge Ruiz!

Greetings everyone!

My name is Alex Witte and I reside in the greater Milwaukee Wisconsin area! 

I am interested in the 'buy and hold' investment strategy for single family homes in the greater Milwaukee area in the $0-$500k range. 

My experience with real estate has been minimal I would say at this point. I purchased my first home in Sept 2015. I put a new roof on it, installed new floors throughout the home, finished the basement, and remodeled the master bathroom. I sold it in May 2017 and purchased my second home which I reside in currently and am working to remodel it. 

I have skills in various aspects of home repair and work full time as a sales engineer so I am 'bankable.' 

I hope investing in real estate will allow me to quickly gain flexibility of work hours/location so when I have a family I can be as involved of a father as possible. My current sales position has me traveling quite often and on short notice.