All Forum Posts by: Craig Oram

It seems Orlando is hot right now. Don't see any major turnkeys in the area. How can an OOS investor get in on this market and keep risks low and returns high?

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I am thinking of buying another property in Florida. The mandarin area of Jacksonville has lower returns, but it may have some speculative area for appreciation. I don't know all that much about that ZIP code. Can i show my numbers publicly here? or do i have to PM? the basics are 252k purchase price, $1900 rent. the house is 4/3 2000 sq ft. Area normal. has been nicely upgraded and 3 year lease from tenant. I can give the dirty details if needed but thought I would start with that.

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Originally posted by @Andrew Johnson:

Craig Oram When I look at deals it’s always with 25% down. Whether I would put down more or less the 25% keep it “even” when looking at the profitability as a deal. If you want to look at those “deals” where 100% debt would yield great positive cash-flow, well, they won’t be $200K properties. It will be the $50K property that rents for $800. But then you run into issues about funding, low dollar loans, etc.

So the net result is that running numbers with “0% down” for a decent quality rental is just going to leave you frustrated. You could attempt the BRRRRRRRRR route but odds are you don’t want to take your eye off of your PhD job :)

Appreciate the response. I agree... I’m very cautious and I always assume that I am missing something. Fear of success and all of those cliches might apply. So far being the logical alien has served me mediocracy. It is difficult to walk the tightrope between ruthless logic and risk taker.

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Originally posted by @Jay Helms:

@Craig Oram - - sounds like you’re not clear on WHY you want to invest. By that I mean, if you were, and you’re confident on your analysis, then either the property fits your criteria (thus further due diligence) or it doesn’t (and you move on).

Discover your WHY, your passion for wanting to invest and this will produce your goals. Once your goals are defined, it’s easier to establish your investing criteria. Your criteria act as a guide to evaluating properties, your bumpers if you will.

Spend some time discovering your WHY, it’lll make everything else much easier.

Appreciate the response, however, I’m pretty sure I know why. I just might not understand the how. I’m not sure if inward thinking is needed for my situation.

As to my WHY, well that is pretty simple... make enough money passively to allow me to support my family, continue doing the things we like and build a legacy for the future.

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Originally posted by @Rachel H.:

@Craig Oram I always hear the 5 year mark is ample time to wait until things get better cash-flow wise. Though, personally I'd look for other deals. One of the reasons why I switched from single-family homes to mobile homes. The HOA will probably go up over time which is an expense you can't really control. You'd have to factor that into your decision. Best of luck!

What resources can I use to find mobile home parks?

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Originally posted by @Ken T.:

Hey Craig, I'd consider taking a look at more properties. If you're investing out of state, you have a lot of options to choose from since you're not limited by geography. To be realistic, a cashflow of $10 per month is probably not going to be worth your time, so the interest rate is not your problem here. I'd recommend looking at properties with better numbers such that the cashflow is still good with current interest rates. I'm a turnkey investor myself and am still able to find properties that cashflow ~$150 per month. It's not as good as a couple years ago with rising prices and interest rates, but it's still better than the market. Feel free to PM me if you have any questions!

Just to clarify when I put down 20-25% my ROI is 6.5%ish with maintenance and vacancy baked in.

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Originally posted by @Aaron K.:

You would have a return with your down payment because you are not leveraging 100%. If you want to calculate it the other way you can but in my opinion it doesn't tell you anything useful. I would not bank on rent increases unless you are planning on holding the property for a decade or more.

I would like to evaluate if the property is cash flow positive with 0 down, even if I plan on putting down 20-25%. I am also thinking about appreciation and if I am buying the house at bargain. This might mean that rents are set too low or I could sell the house with a profit later. Problem is I don't know the area that well.

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Hi all,

I am trying to figure out if I want to buy a property. Situation is this...

Rented at $1600/mth

House cost $215k

Fixed cost are PM, HOA, INSURANCE AND TAX = 160+13+50+230=$453

Current mortgage rates are my struggle. If the rate were 4.5% (which it is not) at 100% leverage I would break even or make about +$10/mth. with the rate at 5.125% I'm paying -$80/mth.

Now as with most people, I will put down 20-25% and "artificially" make this positive ROI. But here's the rub, will the rent increase over time work out to positive ROI in the above scenario? What time is considered reasonable to wait? What about equity?

What do you do when faced with this?

Are there experts I can talk to that might understand the area better then me and can help me make a judgment call? BTW the property is located in Fleming Island (Jacksonville) Florida.

Couple of things about me to calibrate everyone. I own a couple of houses, all of them turnkey besides my own. I am a Semi-Conductor professional(PhD) with two small kids and as such all of my time is used and the option of a more active investment is very difficult for me. I have most of my money in the market and cash assets, and I do actively manage it because I can do it from work and it does not disturb my coworkers.

So many questions... so little time. With interest rates on the rise I am struggling.... :-(

BTW I am aware that fixed cost are not the whole picture... maintenance and vacancy blah blah yeah yeah I know.

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Thanks you all for your replies. Gives me a lot to think about. On the one hand TKP provides me a means to get into real estate that does not require much from me. On the other hand it does conflict with a even more powerful force within me... I’m cheap. Every time I’m about to move forward with another TKP property, I cringe a little because I know I’m paying someone a premium to have them do many of the tasks that are easy for me to do. Even still with a full time job in semiconductor it does provide me with an easy avenue to diversify. I just wish I could do the one “mother-load”, get it with some value built in, and be done.

Thanks again all!

(Slightly less) Semi-retarded investor in Silicon Valley.

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Hi all,

I have a question. I currently own a couple of properties in Jacksonville thru a TKP and I have been daydreaming about what to do next. If and investor has say 500k(I have about 2M but would not be willing to go more then 500k) in cash reserves. Should that investor be looking at diving into a bigger deal such as 2 million apartment? Or continue with slowly building portfolio of ~200k SFR? How do you buy a $2M apartment? Is it the same as SFR? Do banks see it as you buying several properties? I don't even know where to start. Just looking for some opinions from more successful people then me.... stand on the shoulders of giants and all that.

Thanks

Silicon Valley Semi Retarded Investor.

2 Votes

All Forum Posts by: Craig Oram

Craig Oram has started 6 posts and replied 22 times.

Post: Orlando? How can out state break into that market?

Post: Investing in the Mandarin Area of Jacksonville Fl

Post: Struggling with "cash flow positive"

Post: Struggling with "cash flow positive"

Post: Struggling with "cash flow positive"

Post: Struggling with "cash flow positive"

Post: Struggling with "cash flow positive"

Post: Struggling with "cash flow positive"

Post: Multi family residence or SFR

Post: Multi family residence or SFR