All Forum Posts by: Chris Low

Go to the Tools section on BP and run your numbers through the BRRR calculator. It basically does the same calculations Scott is suggesting above but allows you to run different scenarios with the numbers. We use these tools all the time - rental property calculator and BRRR calculator. If you aren't a PRO member on BP, it's worth it just for the tools.

I agree with @Cody Stone about buying off the MLS, particularly in the valley. Prices are going up there - we've been looking, too. The first property we looked at was a duplex that would've cash flowed $200/month. We wanted no less than $300, little did we know how hard that would be to find. That opportunity came and went and we're still looking for cash flow there! We use pretty conservative numbers and have found we may be too conservative on our pro-formas (like using current actual rents rather than projected rents when we have reason to believe the projected are good numbers.) We just haven't decided to take the leap and become less conservative. We have adjusted our cash flow expectations somewhat, though. Now, if we're looking at a property in Boise, for example, we're more willing to consider appreciation (to some extent) and weigh that against current cash flow. Nampa, not so much. Caldwell - depends.

Have you looked into doing a lease option? There should be some blogs and forum posts on lease options on the BP website.

Check with your local law enforcement agency or call a property management company in the area to see how they would handle it. It could be a big deal and there are typically required holding times and even public notice requirements. Better to find out than to risk it.

Depends on the structural repairs but it can give you an advantage in a super competitive market. A lot of people will walk away from structural repairs so there's less investor competition. But do NOT try to assess it yourself. Bring in an expert. If you have a structural roof issue, bring in an engineer or architect. For foundation issues, bring in a foundation expert. It may end up costing less than you think to repair or you may be able to drive down the purchase price by presenting the seller with a quote from an expert because suddenly they're faced with the reality that the major repair work will prevent most potential buyers from even taking a first look at their home. So, no, don't walk away. But DO consult an expert - even if you have pay one - and then run your numbers. Good luck!

Everyone is an expert - ESPECIALLY people who have never done it. I just tune them out. Basically, I stop talking about what I'm doing when it's clear they have no idea what they're talking about. It was hard at first, but now it's pretty easy because I know I have the experience and they don't. You are already FAR more knowledgeable than most people just by joining BP and doing your homework. Research does count, even if you haven't executed your first deal yet. It's too bad when people who are close to you won't support you but you have to believe in yourself. You will find a very supportive group here on BP who will tell you you're smart to invest in real estate, to educate yourself, and you're brave to jump in and actually DO something. Let those voices be the ones that carry you through. Tune out the negative. You can always reply to the negative people with 'well, I'm willing to take a chance. Doing nothing is not an option for me.' As long as they're not putting any money into the deal, it really doesn't matter if they like or approve of what you're doing or not. Keep going! You will get tons of support here from people who actually know what they're talking about. You're going to do great!

How did it turn out?

Depends on the neighborhood. If it's a trendier neighborhood, then I'd say you should replace the siding to give it a more modern look. But if it's blue collar and the siding is in good shape, I wouldn't spend the money. Give it some curb appeal and spend that money on the kitchen or bath.

@Cody Stone - we are investors in CA looking to get into the Boise/Caldwell market. Please add us to your mailing list. PM me for our contact info. Thanks!

Are you looking for sellers or partners @Suzette Parsons?