All Forum Posts by: Charles M.

J Martin Hey J, the first time I read or heard about Lifestyle Design was in Tim Ferris' book that everyone always mentions on the BP podcasts called the 4-Hour Workweek. (You know, the book that Brandon Turner is always mentioning that Joshua Dorkin is still on page 13 after about a year now). Lol. Anyway, I definitely recommend reading it for a firm foundation of the philosophy. I'll post my thoughts tomorrow when I have more time. Thanks for mentioning me J.

Bruno Tavares Just a random example. I try to stick with 3/2's but I do often see (& am tempted by) 80k rehabbed 2/1's here in more humble areas. The rub is that they usually will only command 650-725mo. due to size & location. Better returns can be found but again, that's all relative to your specific investing goals.

@Ali Boone

I've read most, if not all of your blog posts and noticed you've mentioned it a time or two. ;) Love it!

It just makes too much sense if you have a choice to go for a 60k listing needing 20k of repairs and possible surprises OR the rehabbed listing for 80k down the street...close, place and automate...done! And from what I see, even with tight inventory, selection is still available for cashflowing properties. Some call it lazy or spoiled or soft...but why work so hard if the same return can be made w/o the time & effort. Life is short...enjoy it!!!

I'm a fairly finicky investor as I'm a big believer in lifestyle design and business automation (ask Frank ^^^). I'd say it really all boils down to your goals & comfort level. I'll almost always target a cash flowing property with a target return in mind that needs as little work as possible. Totally different approach than most BUT even with this criteria I see many decent cashflow opportunities in Tulare/Fresno counties. I have not purchased a MFR yet but have run numbers on numerous MFR listings over the last couple years and in my humble opinion, returns on SFRs still greatly outperform MFRs in this area when vacancy, utilities, maint. & landscaping costs are considered, especially if the building is full of 1/1's. I will quickly concede to Frank's point that seller carry is a game changer depending on your financing situation and is more available in the MFR side.

I'm considering investing in an SFR in the DFW area. I currently have no contacts in that market and need referrals for an investor-friendly agent/broker, home inspector & PM company local to and knowledgeable of that area. More specifically, Johnson County (Burleson, Joshua, Alvarado, Keene, Cleburne)

Reply here or inbox me your contact info. Thanks!

In CA you do NOT have to disclose "forever." 3 year rule applies to disclosures on sale transactions & rentals;

"Under California Civil Code Section 1710.2, if someone dies on the property, it's a material defect – but only if the death occurred within three years of the date you make an offer to purchase or rent the home. Technically, if the property was the location of a mass murder in 1975, the seller, lessor, agent or broker does not legally have to volunteer the information."

Regardless, if numbers are attractive, I would disclose to all rental applicants and let the chips fall where they may. I can't speak specifically to the Hanford market but Tulare/Kings county rentals are in high demand and my new rentals are usually rented out in 2-3 weeks tops with 5 or more serious applicants.

Bottom line for me, not every tenant is religious, not every tenant will be turned off to the point to walk away after disclosing. You will have a smaller "customer base" within the three year period but if the house is attractive, safe, comfortable & affordable to rent..."If you rent it, they will come".

Good Luck!

The only question here is, do the numbers work?

Hi all! I'm a local buy/hold guy mostly in the Visalia/Tulare areas. I've met with Frank a couple times, very friendly & knowledgable guy. I'd love to crash the coffee party too if not imposing. My schedule is open. Thanks!

Dawn A. , I thought the same thing. The way I understand it, it sounds like they are just throwing everyone under the same roof, changing the name and selling the risk onto willing, private investors instead of being backed by the govt. The only thing that remotely excited me was that they mentioned "more accessible" 30 year fixed mortgages, which means higher demand for new & existing SFR's (and likely another bubble).

I'm surprised that no one else is discussing this on BP or maybe I just haven't found it but can you please share your thoughts regarding today's news, "Obama to back mortgage finance reform to speed housing recovery". I don't think there is a written proposal to research yet but basically, two in congress along w / the POTUS are communicating the desire to phase out and eliminate Freddie & Fannie and create a single "private" entity that would basically do the same thing Freddie and Fannie are doing now. Do you have any thoughts on how this might affect the overall housing/lending sectors? New opportunities? Thanks!