All Forum Posts by: Brice Hall

What's up with all the low income, cheap property "deals"? "I bought a house for $30,000 and rent it out for $700! I'm going to make a great return!"

You are completely neglecting future CAPEX. What happens when you need a new roof? Furnace? Ac? Floors? Windows? An entire year of what you call "net income" will be gone. Do you ever plan to update anything in the house?

What happens when a bad tenant destroys the place AND doesn't pay rent?

Is there anyone who has done deals like this and has found LONG term success? Math and probability says no. 

@Ben Leybovich got it, I misunderstood. Can't we estimate a long term cap ex and then determine if the property makes money long term? 

Let's says $200 per unit, per month. 

With that being said, isn't there a break even at some point? 

touché @Ben Leybovich.

So you're saying it takes a lot of work/time to make minimal money (even if it's a good ROI)?

Does scale help/having a lot of these? Wouldn't 50 properties earning 3,000 each per annum be worth the additional time for some people?

From other posts, I know how challenging creating a good PM team are, but some people seem to have success. Would this help with the time issue? 

Thanks 

@Ben Leybovich thanks for your posting! 

Do you personally have any long term financials / IRR supporting your argument that you could share? Would love to see how things look in the numbers. Thanks!

@Michael Wentzel have you done any kind of capex reserve spreadsheet for this property? 

Check out this post and the capex annual accrual spreadsheet midway down:

http://www.biggerpockets.com/renewsblog/2015/03/03...

Now you may disagree with the numbers here, but from their research they found a reasonable expectation of replacement costs seems to be about $257/door.

What are your thoughts? 

@Jon Holdman great response thanks! Has anyone shared an actual reserves spreadsheet? (Replacement cost / average life)

@Dan Brainard Ive been looking for a similar thing, any luck? 

@Steve Babiak, thanks for sharing those links! I've taken a look, but haven't come accrross any actual spreadsheets or data anyone's supplied. Have you?

@Ned Carey,@Steve Babiak,@Christopher R. thanks for all of your insight. Any of you have a reserves spreadsheet you'd be willing to share?! Thx!

@Shane Pearlman, looks like a great study. Were you able to finish it? I would love to know the very answers to the questions you asked. Were you able to find them? Thx!

hi sean, I'd be interested in working together on deals in Wilmington. Lending, etc. Feel free to connect.