All Forum Posts by: Chris Sellers

Joseph,

You sound ambitious, that's a huge part of it.  When you're starting out, learning the business and crafting your niche, I would definitely invest where I'm living.  This way you can keep costs down, manage things right while learning a ton.  As you begin operating at a high level "in the zone", other opportunities will present themselves that you can take advantage of (like managing other investors' properties, picking up some great off market deals).   After you've built a small portfolio and you know you've got it down cold, you can try out other avenues if you want, including out of town deals.

So move out to Cali to learn the market before buying or buy some deals right there in Baton Rouge.  Either way, have fun!

Thanks,

Chris 

Eric,

Congratulations on entering your first flip.  You learn so much on the first deal and hopefully this will spring board you to life long real estate investing to build wealth.

I would use the line of credits and forget the other financing. Pick a small deal with a less complicated rehab to start. Setting up an LLC first is a good idea. It's pretty simple here in NC. If it seems like that process will hold you up, just go for it. I did my first few deals in my own name without an LLC; most people do.

Most important:  1) Only partner up if you're sure you're compatible to handle it when things go wrong, 2) Keep it simple the first time, 3) Buy the house right, even if that means 25 rejected offers before you find one (hard to make up for paying too much).

Good Luck!

Chris

Chris,

Congratulations on the 4plex!  Pictures look great.

I always want to provide a clean slate; let the renter imagine their stuff in the place.  Get rid of all the curtains, shower curtains and personal things like that.  If needed, I paint everything a light, neutral color (only 1 color is best).  Clean it real good so it has that bleach smell.  Spruce up the front and any landscaping, especially the entry areas.  Adding a dishwasher can increase the rent, if it's easy to do.

Be sure to spy on your competition.  This will guide you a lot.

Good Luck,

Chris

Will,

Good point.  I've done that too.  Liquidated, then sidelined my cash for a year until I found the right "value add" deal.  Knowing I lost all that rent in between was tough.   

Thanks,

Chris

Eric,

I'm not sure, will have to figure that one out.  I'll definitely keep your 7 year figure in mind.  The concept makes sense.  We can calculate a break even point between a lump some of cash and payments of cash.  

Thanks!

Chris

Thanks Eric!  

Thanks Steve, so true.  I'm definitely putting them "for sale".  Identifying that "lowest acceptable offer" versus just keeping them for cash flow is always a question for me going in.  

Brent,

Thanks for reply.  The 8plex worth $380k or so.  The portfolio about the same.  I’d re-invest the cash into other properties will value add potential with goal of increasing cash flow.  These are tougher to find in today’s market, but they’re always there.

Nothing holding me back.  Just seeking wise counsel before acting.

Thanks,

Chris 

Benion,

Thanks for the interest.  I'll let you know.

Chris

Philip,

Thanks for the reply.  

I have no mortgages.  

My goal is to steadily increase passive income.  From time to time when the market heats up, I sell things to increase this passive income (buy more properties with the sell proceeds, making step increases in passive income).   Market seems hot now is why I'm considering it.  

I'd estimate vacancy at around 8%.