All Forum Posts by: Bryan Mitchell

@Paul Hamilton, at first glance, I’m not seeing 4% on MF. I’m been told by some lenders local and regional that 5+ units is 5.5-6%. As for utilities, yes, most (all the ones I’ve seen) duplexes have separate utilities (especially electricity), but in a monster house situation or cottages on one property may have on water / sewer bill and use trash receptacle (garbage). I still would ask from the owner their P&L or operating statement to see what they are paying. As for capex, this depends on whether they have rehabbed/ replaced key systems/ items recently. I generally assume that the older the house the higher the capex. 10% seems reasonable for newer homes or ones recently (fully) rehabbed, but not older homes not rehabbed. In this case, I would increase it. Also costs for maintenance will be higher on older homes. Don’t forget vacancy rates and the associated turn over costs. I’m running an average of $1200 for those. So if you’re only making $100 a door and you have an average tenant there for only 12-15 months, you can make very little to no CF. 

@Lucia Rushton, not looking for a real estate agent but rather getting feedback on an interesting career move that some investors are considering. 

@Bruce Lynn, completely agree with you. KW, EXP, and small brokerages will have their benefits, but probably the most important thing is surrounding yourself with like minded folks. All the best to you and yours.

Marian, many out there want to be agents but focus on the investor side of things. I know some agents (friends) of mine are their best customer. This is really not so common based on what read and personally experienced. My friends who are agent investors are finding deals and marketing the ones to those on their buyers list that don’t fit their criteria. I thought that was clever. So I thought I’d reach out and see what RE companies encourage this type of activity or offer special incentives for investor agents.

@Amanda Polton, Amanda you've had several individuals provide very insightful responses to your question. Can you please respond back to us and let us know what you're thinking? Are you going to continue to consider single-family homes even if it means that you were going to have negative cash flow? Will you pursue an ADU, another form of house hacking, to create positive cash flow? Thanks.

Which real estate sales company has the highest number of actively investing real estate agents?

AK, Yes in theory it is simple, but certainly not easy to do. Real Estate does take a lot of capital whether you’re using your money or someone else’s. I think when it comes to investing, this is one of the biggest obstacles. (Probably why investors speak so frequently about “no or low money down”). Combine that with a seemingly slow road to wealth and many would shy away from investing in RE in favor of bit coin or some stock or mutual fund for instance. Easier to contribute $100 or even $1000 a month into a 401K than owning at an investment that requires work (I.e. not passive). Also the risk is far higher owning a property that people call home. All said, I still think that income producing property is a good move for any investor even if you only view it as a means of diversification or  as a hedge to inflation. PM is you want to discuss more. 

@Travis Frenchak, first off well done on your cash flowing properties. If I’m calculating it right, your cash flowing over $350 per door. And you are right, networking outside your area and you might find a partner that suits you well. You’ve had some great success, so you’re bringing something significant to the table.

If all things are equal, like the others have said, a “turn key” may be best. However, you need to look at the age of the fixer upper and most definitely the current and future rents. Put this data in the calculator and quickly make a decision based on cash on cash return.

@Dave Kansagor @Taylor L.is right. Find the right broker and you'll get the leads for these types of properties. Thanks to BP and other platforms, you can better network and find those brokers who operate in the space or niche. In addition to networking, find one of those on the MLS using some applications and reach out to the listing agent. That particular deal may not work but the agent may have others that do.