All Forum Posts by: Bogdan Cirlig

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This thread is on fire!

turnkey properties? Memphis is one area. Austin TX another.

Always! You want to make your rental the nicest on the block. That drives up demand and people rush to get it. People rent houses in an emotional manner. Cheap blinds, bright bulbs, clean fresh smell, right temp in the house make a huge difference when someone comes to see it.

No necessarily. I have first hand experience with 2008 recession. Long story short, I could NOT keep my rentals rented not even to Sect 8 because when economy took a dive, people who wanted to stay employed moved OUT of the area and that made room to the "other" people that trashed the asset class from a B- to a blunt D in as little as 2 years. 

Due to local city harassment like Fine over fine for trashcan on the driveway and other nuisances, plus insurance rates tripled cus heh insurance knows when an area goes class D and also thanks to street neighbors who looted the property 3x times while I tried to rent it, I simply cut my loss and moved on. I had a valuation wipe from 90k to 30k. Every other house on the block was in foreclosure for similar reasons. Then tax lien sales happened and so on. 

And now the "other" guys own property with a replacement cost (as per insurance) of $150k for a tax sale of less than $10k. Speaking of wealth redistribution heh? :)

Can you keep it rented and collect? Don't buy just because of the numbers. Also why is the seller getting out of this amazing deal since it's rented?

If you give me some cross streets I can look for you at other elements such as crime, schools, rent/price trends in that area. 

If you give me some cross streets where the property is located I can give you a complete picture (free) of all numbers and data included (rents, valuation, vacancy, appreciation, ROI/CCR)

One idea, if you have equity in it now, flip it as turnkey rental property. Pay back your investor, keep the difference, THEN go and get the next one. Rinse and repeat till you have some capital that gives you more wiggle room. Just make sure you're very conservative about your flipping price and marketing prowess so you can estimate the velocity of your investment (aka, how fast you get back your initial investment AND profit).

One idea, if you have equity in it now, flip it as turnkey rental property. Pay back your investor, keep the difference, THEN go and get the next one. Rinse and repeat till you have some capital that gives you more wiggle room. Just make sure you're very conservative about your flipping price and marketing prowess so you can estimate the velocity of your investment (aka, how fast you get back your initial investment AND profit).

Agreed. Don't buy a property just because the "investing fantasy game" shows the numbers make crazy sense. Class "D" assets are un-collectable by legit means, you're making a huge assumption that you can collect your $350/mo w/o twisting tenant's arm in a dark alley at night and sharing the protection fee with the "street landlords" who help you collect so to speak :). Check the foreclosures in that block, recent sales, who parks at night, schools and crime rate and also boarded houses. 

I have first hand expertise in a C+ turning D- and not even Sect 8 wanted to rent there... you won't even be able to rehab a place to try to rent because the night after it's rental ready it will be looted (again) by your friendly neighbors... so you will be in complete deep hole at that point.

There's the big IF: are you able to rent it and collect every month? If yes, you have a fantastic deal.