Quote from @Jennifer Roussel:
Quote from @Cliff Benner:
I invest in Dayton, my first purchase went terrible because my realtor did a bad job on comps as well. I now use @Tyler Everidge, who I found from here on BP and he has done a better job at presenting me comps and his reason for ARVs. I have not used him yet, just due to my businesses have me working more than ever, but I have how he presents his estimates.
Dayton has been very hard to see how the market works, my rental would go on the market for $160k today, but a mile away similar comps can be $100-$250k. It just seems to literally be block by block.
In my opinion it is a Cash Flow market, not Appreciation. even at 7% I am making the 1% rule and could find more in that market that make the same thing but when I go for my next one, I will focus on the area being a better Class and get a little less Cash Flow for less of a headache.
This is great info, thank you. Yes, this area is most definitely cash flow vs appreciation. Not 10000 percent sure what exactly we will do with the property once we acquire it (yet). May be STR and we use it when in town depending on location and distance from relatives. May be long term rental. Keeping our options open until we find what we’re looking for, the legalities of STR in that location, etc. mainly looking within 45 minutes of Lebanon as a target zone for proximity to family.
how much headache are you getting exactly? That was my biggest fear for investing this area
My headache is actually finding down payments and time to analysis the properties, I 10x my Bookkeeping Business in 1 year and doubled my Candle Business in 1 year so managing them takes me away from Real Estate. For my exact story in the beginning when I had a bad team, check out episode #610 of the BP podcast, I was actually on it discussing my terrible time. Since then I did fire my old team, except my Mortgage Broker, and replaced them. My new PM is great and has good systems in place, the location of my rental is a C- and doesn't get the most attractive tenants but decent ones, while it is also unique, having 4 bedrooms. So this makes me have to Manage my PM a bit more, but an hour a month for that and bookkeeping is worth the $400 in Accounting Cash Flow.
With my current team, I trust them, but verify every detail myself by asking them to provide me their comps and reasoning and then question them if I don't agree with them or understand, as I am an Accountant/Investor, not a PM or Realtor who look at things differently. I created my Buy Box and explained to Tyler, what I want and expect from him and a future property, I asked him to define the location we should look and why. I was upfront with him and told him I want to buy and have him be my realtor for a long time, so if he pushes me to buy a bad place I won't use him again and won't recommend him.
Trust but Verify is key, but as an OOS Investor, it is hard to get an ARV in my head from this market, knowing that the house two blocks down may or may not be a good comp because of how that Market is. I have to rely on my team, which is good because I don't want to waste his time while I am busy, so I don't reach out until I know I am ready to buy something. I just analysis until I am ready.
