All Forum Posts by: Lance Balkus

I agree, but I'm in a different part of the country. 1% here is impossible unless you find a deal, which is very hard, here, even on foreclosures unless you want to be in a war zone. Even in commercial property it is hard to find a deal. 4 pledges not in top condition in okay neighborhoods are going for 230k and they are getting close to market rent at 650 a unit. Right now isn't the one to jump in unless you find a deal, IMO. I believe a deal right now has to have some negative housing market affects in order to survive. My area, according to a broker who does everything from wholeselling to flipping and renting thinks the market will be good until 2020, but then she thinks we got s downturn. In a downturn if your rent had to drop by 10-20% would you still be cash flow positive?! If the answer is no, I wouldn't do the deal unless you are a cash buyer or have enough CF to do so.

Anyone had any experience with the thin interior wall homes? This wall has no studs but strips of vertical drywall sandwiched between a set of 1 1/4 drywall sheets. The home has multiple original walls built this way in the early 50's. This wall runs perpendicular to the ceiling joists, so it would typically be a load bearing wall. These walls obviously have no wiring in them, the house needs to be rehabbed not sure if I should remove and rewall them.

I'm not sure I'm following your question. Why would anyone choose the cash flow? With the straight million you can generate a larger return, even on cash flow. The math is the math.

How do you decide if you want to flip a property or rent a property out? What metrics do you use to determine this?

My numbers on the town home cash flow at approx. 659 that's paying cash for the home, after all expenses. No mortgage. Pulling out roughly 76000 to reinvest. That would leave me at about 260 in cash flows per month. My intent was for every super deal I get like my first property, to buy a "new" property. I'd love for you to look at my numbers and see what I'm doing wrong. Now, the cap ex expense factor in using on the new home is less than the wholesale home by about 10% as the house was built on the 50's. The wholesale home max value is approx 175k, but since I'm paying 147, and I believe it needs approx 15-20k in work I'm not sure I would get any appreciation. Lincoln is a hot market right now, not because of low rates but the supply side is sooo short for 1-200k thousand dollar homes. People here aren't renting for 1% right now. Those 209k dollar townhomes rent for 1550. The house I'm looking to wholesale is probably 1300-1400 a month. I'm sort of confused what people include in COC and what numbers they don't. My parents have a few properties they self manage and it has gone fairly well. I plan on using Tenant Cloud for mine. This is all very new to me.

I have my first investment under contract, it is a 980 square foot 3/1 home with a single stall attached garage. I paid 55k for it and it needs about 20k worth of repairs. The house 3 doors down sold as a 2/1 with 800 square feet for 115k. I am looking to put my second house under contract but I'm leaning towards purchasing a brand new townhouse for between 195-209k. The TH has a 95 dollar hoa, which includes lawn, sprinkler, trash, snow and basic cable. I'm torn because my cash on cash return is the exact same as buying a 60 year old house from a wholesaler. On the new property it is a neighborhood A, versus the neighborhood B wholesale property. I am only figuring 5% cap ex on the brand new and 15% on the wholesale house. The wholesale house does need about 20k in repairs. If I lower the cap ex to 10% on it, it's COCR return is half a percent higher. My system will be a hybrid BRRRR system. I'm self managed so I won't be factoring in any PM at the moment. What do you do? Lastly, when you BRRR and refi, are you taking out your entire investment or are you taking it enough to meet your per door CF? Thanks!

Bubble... sure in a few ways. Not like the 2008 crisis, though. Commercial real estate, student loans and automobiles are the issues at hand today. I don't see it having the same affect as 2008.

I think for a certain demographic you may be on to something. However, for your more expensive clients I think you'd lose most of your upside. I actually fee like real estate is going to be greatly affected by technology in the coming years.

Hello!  I'm starting my rental business.  My main goal is buy and hold.  I'm starting with roughly 280k cash. I signed a purchased contract on my first home in a B market. No basement, 3 bedroom 1 bath with an attached garage for 55k.  It is in south Lincoln and needs to be remodeled. 

I'm planning on buying 1-2 more this year and the. Purchasing 1-3 more per year.  At 10 rentals my plan is to upgrade to a single apartment building.   A bit nervous with managing the properties, I have looked at Using Tenant Cloud or Buildium. Using Buildium isn't much cheaper than hiring an actual manager. 

Does the group in a lincoln still meet at Grata on 70th? First or second Monday of the month?