All Forum Posts by: Mike Terry

Great Questions V.G. Jason:

total annual net cash flow is 32,972.24 for 2024

Insurance claims are in litigation currently.  I put on 2 new roofs. 1 to still to be replaced.  State Farm denied all claims, as seems to be their business practice.  After hiring an attorney on contingency basis.  We anticipate we will be made whole after expenses.  No additional risk.  I just sold a home that Hurricane Helene put a tree on the roof and had substantial structural damage and It sold quickly at market value.  I suspect people are little less concerned about a history or damage in these markets as there has been three hurricanes in 2 years. I am not anticipating having any issues when it is time to sell.  The most recent comp had similar damage and it set the market for these types of properties.

That seems like a pretty good deal to me!

 Hi Daryl,

I work in banking. MAny small community banks and credit unions will do this type of heloc. You need to find all the banks in your county or MSA on the FDIC website. Fin the names of the banks (say smaller that 2 Billion in Assets). Call a local branch manager or commercial lender (small banks often list this on their websites or you can find them on Linkedin). Make a call, leave a message, drop by a branch and ask to speak to a lender. Good luck!

Yes I have my eye on Detroit. We want to move someoperations there. I can work my W2 remotely and I have aging parents across the border in Canada that I want to attend to more frequently. I like BRRR, like homes built in the 1980's. Im not a C Class investor, been there and its good cashflow, but it's a struggle with the tenants and condition of homes. Solid B class is great, something that will attract solid long term tennants. Of course discounted properties, that will land the ARV in teh median price range. I won't do major foundation work, but minor structural and full interior rehabs are fine. We will be ramping up our search in the new year.

@jules Aton I have no real expectations on values beyond that I suspect they will keep up with or slightly out pace inflation. Rents and values are still below national averages and the local economy is supported by a large state university, an Air Force base that is growing in population and significance and a regional hospital. I’ll be holding!

 Great response. Thank you! I am absolutely open to similar deals in similar markets. I like anything up I 75from Florida through Michigan.

Mike

I bought three duplexes in south Georgia in November 2020.  They have been solid cash flow plays as was the projection for them.  I didn't think they would appreciate much.  A identical building on the same street just sold for 300k.  Now I don't know if their were significant seller concessions or not that may impact value as a comp, but unadjusted these properties will have doubled in value in under 5 years.  Now there have been challenges in my portfolio and with these properties, including two hurricances and 6 insurance claims ( still unsettled), but the upside and surprise growth is a great example of what investing in real estate can do. The total return is off the chart! You have to take action and be invested to get surprises to the upside.  How do I find more like these?

The humility you show in the above post shows huge steps forward.  There is no one hear who hasn't made mistakes in this business, lost money, not optimized an opportunity, passed on a good deal etc that hasn't learned the hard way.  Reviewing all your actions and making adjustments on future purchases will ensure your eventual success.  Now keep on pushing if you feel it's worth it.  Hands on experience is the best way to learn.  Kudos to you!

There is no substitute for hands on.  Every level of control you give up is a lost learning opportunity and an opening for dishonest actors.  If your going to invest in real estate maintain  control, evaluate everything.  If you outsource lending, underwriting and property selection all you have to go on is a sales company marketing.  Do it yourself.  If you don't have time, stick with the index funds.

I have one with a community bank.  Rate is 8% and they will lend up to 85% of value.