All Forum Posts by: Cal Martin

Jane, hope you are having a great day! Unless they are a college student I don't accept applicants with no credit history. A full time worker with no credit history may be acceptable in smaller towns that don't have the same renter demographic, but finding more applicants in a market such as Colorado Springs should be no issue.

Hope this helps!

Cal Martin

Hey Jarret! Medford, OR is a beautiful place and I'm jealous of you haha. You kind of answered your own question in a way. Low inventory across the country currently is acting as a buffer for the housing market. In the late 2000s crash we were building more homes than we had buyers for, creating a situation where the supply far outweighed the demand, but for that "slack" period people were still buying houses at their previous values, even though the market didn't justify that price. In addition, that crash was led on by lending practices that are highly illegal now both on the primary and secondary markets.

If I were you, I would just apply the same principles to real estate investing that you would in any market:

1) Only buy if the numbers make sense! As buy and hold investors it doesn't matter what the market does while we own the house. As long as rents stay relatively the same/increase and we bought at a fixed rate then it doesn't matter what the market does while we own.

2) If you're a flipper, give yourself some insurance by having multiple exit paths. Make sure the numbers work as a rental, just case of the small chance that the market does crash, because if it does, people still need a place with a roof over their head.

3) Save Reserves! The main variable in this equation is that you manage your property correctly which means keeping money for reserves for vacancy, cap ex, repairs, etc. If not it could put you in a financial position where you are forced to sell.

Also, if the right deal comes up, Medford seems like it would be a great STR market in the couple times I've been there.

You got this Jarret!

Hey William! Don't know if you're still in the area but on the first Wednesday of every month Story Real Estate in Moscow is having meetups and we've been getting around 40-50 people each month. If you're still in town don't be afraid to swing by!

Personally what I prefer to do is to establish a substantial "doomsday pool" for vacancy, repair, and cap ex that I fund by taking the cash flow and putting it directly in that pot. The size of the pot depends on the property itself. Is it brand new or was it built in the 1800s? If it brand new then cap ex and repairs, as well as vacancy will be less than a property built more than 100 years ago. Personally, I would find other local investors in your area through here at BP or ask a local real estate agent for investors that they work with and you will most likely find what you are looking for!

As for the buy/pass number it depends specifically on the market. Some places still operate under the 1% rule while others have negative cash flow. It all depends on your market. Don't be afraid to ask a local agent as they will be very happy to be receiving a call from a potential buyer!

Investment Info:

Mobile home buy & hold investment.

Purchase price: $18,000
Cash invested: $5,000

Mobile Home Rental in southeastern Washington State.

What made you interested in investing in this type of deal?

It was affordable enough for me at a young age.

How did you find this deal and how did you negotiate it?

A for sale sign in the front window. It was listed for $25,000 but since there was only one other buyer who was only willing to pay $16,000 I made an offer $2,000 higher to secure the deal.

How did you finance this deal?

Parents had a HELOC open on their personal residence to fund a flip and they extended it and I pay the principle and interest for the portion that I borrowed from them.

How did you add value to the deal?

Put $5,000 into it around a year after purchase that I got from saving rents each month.

What was the outcome?

Buy and hold