All Forum Posts by: Nick Horob

I think I know SFR family investing quite well.

Just trying to learn more about different approaches!

@Gerald Harris Do have any good resources for me to look at on mobile home investing?

A 40-year old family member of mine is set to receive $1 million in after-tax proceeds from the sale of a business.

Assuming they have additional passive income (eg. don't need the money to live on), how would you invest the $1 million?

I would look to find a couple markets that offer attractive risk-adjusted returns and buy a portfolio of SFR's in 2-3 different markets. Buy properties using all cash in an attempt to slightly enhance returns (negotiate lower purchases prices). I'd then look to refi into a conservative amount of leverage and pursue additional attractive deals.

8-12% cap rates would be my target.   Is this too low?

How would you put this money to work?  I'm just curious to get other opinions.

@Jordy Clark What are the anticipated property taxes on these units?

Google Kory Melby.  He should be able to help you with your due diligence.  Keep us posted

What size of property?  An 8-plex or 24-plex??  

I grew up in Williston, ND.  I actually haven't spent much time analyzing the current market there as the market there is so levered to oil and gas that there isn't enough economic diversification for me.  If I had a portfolio of rental property in other areas I would probably consider investing in some boomtown rental property.

Fargo and Grand Forks, on the other hand, are doing very well while being much less levered to oil (although there is plenty of that).  This issue is valuation.  Hard to come by many good deals these days.  

Thanks guys, good insights!

Thanks Bob!  Looks like I'll probably just start approaching this from a top-down view (analyze the metro areas macroeconomic trends) and then reach out to brokers to dig into each market and submarket that has positive population/growth/economic trends.

Bryan,

Let's assume I pay cash and carry adequate insurance (both on the property and an umbrella liability policy).  How can I lose more than my "skin in the game"?  

Attorney's fees in a lawsuit and/or a judgement that's not covered by your insurance? Any other events that aren't one-in-a-million that a newbie should be aware of? (SFR or Multi) Just trying to learn more about real estate-related black swans.

Thanks,

Nick