All Forum Posts by: Christine Kankowski

Hi Roger,

 Welcome officially!   I'd love to talk shop with you.  As a matter of fact , I own a house in Roy. Great area.  IT is one of the homes I manage myself, because we've had such great tenants there. We have' had too much appreciation there, but the buy and hold is good.  Solid tenants.  The last one gave me a list of the things he replaced or replaced (for my information) but never called about them, etc.   

In any case, I have homes all around and have a few areas that are particularly great cash flow. If you want to discuss, you are welcome to call or email directly.

Best of luck in your future investments!

HI Lorraine,  If you are able to buy locally, of course, that is a great option.  I don't know much about Palmdale, but I would think it might be a viable place.  Maybe talk to some agents out there who handle rental and see what the net cash flow and appreciation has been in that area.

Alternatively, if you are open to looking outside the state, I would recommend using a company that actually does most of the work for you:  They purchase a home, fix it up, place a tenant in it and manages it for you. There are some states where you can make a excellent cash flow and the entry costs are much cheaper than california.

Best of luck with your research!!

Just a thought:  Fir a 30K property, you have to pay all cash, since I have not found a lender to loan on properties that small.  however, you can take that same 30K as a down payment on a $110K home and make excellent cash flow, have good tenants who will stay a while, and have better jobs than those living in a 30K place. 

I personally own several in the 30K range, but have steadily moved to the higher end homes, specifically due to what the people prior have said:  fewer evictions, better care and maintenance of the property.  In the under 30K range, one car breaking down, or one large medical bill may force the tenants to not be able to pay their rent. 

On that note, the cash flow is very good if you do in fact have a good tenant, etc.   So, if you are looking for a fixed-up house to buy with a tenant already in place, I do have one for sale.  Really.

Thanks, and best of luck to you!! Christine

Personally, I do not like doing them, however, I have had success in a few.  1 was a home where my buyers didn't want to see the home, because the pictures showed ugly cabinets.  When they drove by the open house, they decided to go in, and of course, loved everything else about it. (They still have those cabinets. he he)

I do only do them if the seller requests.  With Pictures online, and lockbox access, it is much easier to see the home the buyer wants.  Open houses create risk for the seller (theft) and brings in a lot of people that may not be in the price range at all.

It does create more visibility for the home...

Hi Sean, I am a Southern California investor who invests out of state.  For a few years, Temecula, CA was awesome and i still have several that I purchased in 2008-2010, but the market rose very quickly again and there are just so many other cash flow opportunites in other states.  We just sold our 2 in Las Vegas, because the cash flow was not as good as elsewhere.

In a few states, we actually manage our own and have some long term tenants which has made is very easy, however in Indiana, we have an excellent property manager. 

We actually take the time to go out there, meet with them, research areas and then find homes in those areas. 

Please give me a call if you would like to discuss.  We have homes in about 6 differnet states at this point and one if by far the best for us currently.  

I am happy to walk you through the process.

Christine

As a listing agent, I would counsel the tenants to not let anyone in the home without an agent present.  Noone knows who this person is, if they would steal, damage, etc the property.  2nd, as a listing agent, I try to get potential buyers in there as soon as possible, knowing the next deal could be one mouse -click away from them no longer wanting my property. 

As far as the investor is concerned, he can know on anyones door at anytime, if he's not getting anywhere working with the agents. 

It's all about communication. Let the tenants know, you will let them know of any showings via text or email, so they always are prepared when someones needs to be let in. This is their home after all.  

I do a lot of research online regarding housing prices, crime statistics, employment rates, cash flow rates, for certain areas.  I make sure to base decisions mostly on cash flow, not appreciation, so I was able to go thru the downturn in the economy unscathed. 

After Everything looks good for a certain area, I do go out and visit, speak with several agents, property managers, see homes and discuss that area in detail.

I opted against one area, which had looked great, because the property manager states that they needed to remove the entire AC unit from each home when vacant or they would be stolen. (Cages around them didn't suffice)  I've invested in a lot of areas, but this was a bit much, the crime rate there deterred me.

I have invested in Utah, Las vegas, Houston and currently Kokomo, Indiana. (strong employment, inexpensive homes, strong rental market)  I've been the happiest with the $60-$120K price range)

After all the research is done, I may not actually see the house prior to purchase, but I have found the agent or property manager to do a thorough walk through. I also do get an inspection, no matter how small the home. 

I hope this helps.

Welcome!  I'm from Southern California myself and was able to invest locally during the market downturn, but everything popped back up very quickly.  I also prescribe to the buy and hold strategy and have invested in several states. My latest is Kokomo , Indiana.  You can buy super cheap properties, but there are risks with the lower income homes. I like the homes in the $110K range (4 beds- all fixed) in kokomo.  They rent for $1200-1300 and we have had excellent results with good tenants, etc. They provide excellent cash flow.

The one thing to consider it the amount of investment typically increases wuite a bit if you have not done this before (and even if you have done it before.)  the contractor is giving an estimate before he has opened any walls, etc.  Has he included all new plumbing?  HAve you received a clear termite report? How is the roof? electrical? landscaping? driveway? are there large trees to be removed, trimmed? Are you replacing windows? How is the furnace and AC?  How your priced these out?

If this is your first time, I would start with a simple Paint and carpet job and you will see what else falls into the repair category.  It adds up quick!

Not trying to be negative at all, just want you to make sure you have looked at all repairs prior.  Would this deal be worth it to you if the repairs were closer to 90k?

Get an accurate value estimate from a realtor.

I am in Southern california as well, and we have gotten many phone calls from tenants who which to stop watering the lawn altogether.  So from my perspective, changing out the front yards is a no brainer.  Most tenants with kids dont play in the front yard, like they do the  back, so a few plants (agaves or other drought tolerant plants, ) with a few large rocks and then bark or smaller rocks in a nice form is excellent.  WE can also reduced the amount of grass in yards.  Some had huge lots and we left one area with grass, and replaced a larger section with nice river rock.

In a higher end neighborhood, I agree it is a little tougher...