All Forum Posts by: Casey Gocel

@Casey Gocel I think @David Faulkner is on the money when he says you have to look at an experienced investors math. That's not to say you have to agree with their assumptions. If they're buying because they think the market will continue to appreciate at 5% a year and you disagree then you'll end up with fundamentally different ROI scenarios. If you're more pessimistic that they are or your cost structure is higher (thinking about experienced vs. notice flippers) then you'll never see the value that they do in a property and perpetually be outbid unless, well, you get lucky. So your first step is to learn their "formula" and then decide if you agree with their assumptions.

As an aside, I would also submit that not every market is a "semi-passive income stream" market. Similarly, not every market is an "appreciation" market. Basically, you're the inverse-investor of someone sitting in Toledo and wondering where they invest locally for appreciation. That scenario would be just has hard as looking for great cash-flow for an SFR in coastal San Diego. There's the 1-in-a-____ chance you'll find it but it's not an easy, scalable model for someone seeking to skew passive on the investor spectrum.

Correct ... they may be running their math a bit different (eg: 3% vacancy rate built into their underwritting) OR they may be working off a completely different formula (eg: flips instead of holds), OR BOTH ... and it is up to you whether you agree or not or if that is a strategy you want to pursue or not, but even if you disagree and have no interest, I guarantee that you will still learn something that will be useful to you down the road even if it is on a different path.

I think (if I may Andrew, please correct me if I'm wrong) the main difference between our philosophies is Andrew would rather find a different market somewhere else that works for his preferred strategy, where as I am more strategy agnostic and say that an investor is likely better served by adapting their strategy to what makes sense for their local market. As with the running math differently analogy, many investors with many different views and philosophies on BP, but best IMO to consider them all (even the ones you don't agree with) and pick and choose the best parts of each to form a plan that works best for you.

All good ideas. Thank you both!

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Originally posted by @David Weintraub:

That's not true. You can use lending to purchase foreclosed properties. @Casey Gocel

That is good to know. I will have to look into that. I appreciate the info.

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Originally posted by @David Weintraub:

Are any of you trying to find properties through foreclosure auctions?

I have not looked at foreclosures at all. My understanding is that you have to have 100% cash ready to go when you go to auction and I don't have that. I have the down payment but I plan to use a traditional mortgage for 75-80% of the purchase price.

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I've been researching REI'ing for the past 6 months and I have yet to purchase a property. I live in New Jersey where property values and property taxes are very high. I don't have any construction experience, so I figured I should avoid flipping. Instead, I've been focusing on rental properties, specifically vacation rentals at the Jersey shore. The numbers just don't add up. Even with a multi-family, the best ROI I can get is like 3%. I've been looking at properties between $500-600K and the monthly rents are only $2,000-$2,400 (roughly 4%).

I've also looked into properties that are not vacation rentals, but the numbers are roughly the same in this area. 4% is clearly not going to work.

Flipping seems to be the better choice in this area, but that makes me nervous since I don't have construction experience and I will have to sub out all of the construction work and I fear I could lose all of my profit that way.

I'm starting to get frustrated that I can't find a deal that works. I'm determined to buy a property this year, but I don't want to buy something unless I can make the numbers work.

Do any of you out there in the BP Community have a similar problem with living in a high-priced area? Does anyone have any suggestions for me? I'm very eager to start investing!

Thanks in advance for any advice you may have!

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All Forum Posts by: Casey Gocel

Casey Gocel has started 3 posts and replied 15 times.

Post: I live in an expensive area and the numbers aren't working

Post: I live in an expensive area and the numbers aren't working

Post: I live in an expensive area and the numbers aren't working

Post: I live in an expensive area and the numbers aren't working

Post: I live in an expensive area and the numbers aren't working