All Forum Posts by: Cory Hinton

@Linda S. You're right. It is hard to see it from their perspective when you're putting the money down haha, but yes you're certainly right about how the renter thinks (coming from a previous renter)

@Linda S. @Karen Margrave These are certainly great points, and makes me look at my market from a different perspective. Shreveport is the "big city" of our area, and the source for jobs for outlying areas. That being said, from someone who was in the market for a job a while back, finding opportunities that actually provide a better opportunity than just survival can be rough.

People are moving from the center of the city to the outlying areas with newer homes instead of leaving the city all together. So technically the jobs are still in Shreveport, the workers of the jobs are just leaving the city. Possibly because our property taxes are among the highest in the state.

Rents for my area and houses I'm looking for (3/2 ARV 95,000) are around $850 - $950

@Zack Thiesen That's a really good point. SFR would certainly not be the end goal of my portfolio, so the 5-10 year perspective does make a flat line or potentially declining market a little bit less scary.

Have you taken on a rental in a declining local economy?

Sounds great, I'll certainly check you out @James Lemon!

@James Lemon Well that's great news! It is hard to judge Shreveport's "growth" since so many live and work either in Bossier or Shreveport. What sort of deals are you looking for in Shreveport or Bossier, and do you have any suggestions for a newbie who wants to get started in Shreveport or Bossier?

I live in Shreveport LA and it's been on a steady 10 year decline in new construction and labor, here's the graphs for different industries:

https://www.bls.gov/eag/eag.la_shreveport_msa.htm

I'm deciding on whether to invest in my town and bank on the city turning around eventually, or investing out of state.

The deals I'm looking for are what Alexander Felice does, BRRRR a foreclosure property that I purchase all in at 65,000 and will have an ARV of 95,000. These deals are available due to the shrinking population and job market, but I don't want to buy a house in a declining market that could lose me money in the long term.

Are there any signs to watch for or examples of other towns that have been in a decline this long and have come back?

Hey there, Curt! I would like to be all in on this property at 98k. I'm still pretty new to investing, so I'm not sure what the cost to carry would be. What would be included in that cost?

Is this property worth pursuing as a buy and hold rental using the BRRRR strategy? The comps look like it will have an ARV of 95+. It's listed for 44

https://www.zillow.com/homedetails/1507-Milton-Ave-Des-Moines-IA-50316/811400_zpid/

After looking at what you suggested and going through the rental income calculator on this (amazing) site, here's what I've got! This property is the one that will most likely work. https://www.zillow.com/homedetails/1521-Concord-Dr-Shreveport-LA-71105/51345387_zpid/

#1 - 1500 is the comparable rent in the same area, bedrooms, and square footage

#2 - This house is good to go as is, but could use minimal updating. Based on comps from the neighborhood and the street it's on, the ARV would be 190,000+

#3 - CAP Rate 7%

#4 - Rehab would be $25,000

#5 - aaaaaand this is where it goes sideways...looks like I'm at 90% of ARV. If this is too high is it too risky?

I've found a few homes that seem like great BRRRR opportunities, but I don't know how to go about funding the deal. These seem like great opportunities, but being a newbie I realize I could be missing a lot of why these homes haven't sold yet.

Can someone let me know if these deals are worth pursuing? And if they are, how to go about marketing this deal to get the funding.

https://www.zillow.com/homedetails/413-Coventry-Ct-Shreveport-LA-71115/51347813_zpid/

https://www.zillow.com/homedetails/1521-Concord-Dr-Shreveport-LA-71105/51345387_zpid/