All Forum Posts by: Curtis Rouse Jr

Honestly, I wouldn't do this Lot/Land deal and purchase unless you already have a buyer lined up. Wholesaling this type of asset is typically a little tougher than your traditional SFR, unless you have a good buyers list ready to go looking for what you have. Also since you want to get into some rental properties and flips you will be able to cherry pick the better deals you find through wholesaling. There are many good members here on BP and I would also get involved with local reia/meetup to find like minded individuals as well. Feel free to message me with any other questions or if you need help with anything else!

I would start off by determining your NOI and Cashflow are very important calculation when dealing with MFR. When choosing a market I would recommend looking at job/population growth, job divesification, landlord/business friendly and a rising market. Anything else I can help with let me know!

@Raden Mantuano

Good deal and if you need help underwriting, I've built a financial model (example on website) I help investors with for free all the time so just let me know. Good luck on this deal :)

@Braeden Cook

So you need to run the numbers with you living in one of the units to get a true picture of the financials. Ideally with house hacking the idea is to be living for free and best case scenario have a little cashflow on the back end. 

With your SFR you might want to take a look at the Air BnB model that would give you substantially more monthly income to cover your 50% operating expenses budgeted. Look at the average daily rents in your area and use a rate factor of 66% for being occupied 20 days out of the month and go from there.

Ultimately will come down to your long term goals and what kind of strategy you want to tackle over the long run. Like myself, you are along the right track with the multi family to start building wealth, but single family just isn't enough because the number of doors and the difficulty to scale.

I hope this helps and Best of Luck!

@Raden Mantuano

As others have mentioned, if you are not purchasing into any equity and the house is really worth $350k then it wouldn't affect your networth. Real estate is a long term game, so I wouldn't worry about networth in the initial years of investing. My question on the $300 of cashflow, are you taking into account reserves for your capex like roof, electrical, plumbing, etc or is the property already been renovated and everything is updated? Just wondering because a lot of investor don't include this and one major expenditure could wipe out ALL your cashflow for that year or years to come. Make sure you get itemized schedule from seller when these have been done and get property inspected as well. I hope this helps and Best of Luck!!!

@Michael Gibson

Welcome to BP!!! Looks like your on the right path, but have you tried pulling list like for pre foreclosure, tax deliquent or code violations? These lists have been gold for me, but again with wholesaling it comes down to motivation of the seller. If no motivation, keep them on a list to follow up and continuoulsy do this because in sales they say you have to touch/contact a person on average 7 times to get a deal. I hope this help and Best of Luck!!!

@Kate Murphy

Welcome to BP and congrats on this deal!!! Do you have any additional financials or pictures you can share? Also, how do you see the market up there in Boston, still very competitive?

@Account Closed

Welcome to BP!!! So there are a lot of questions here with buying lots of land because initially they do not cashflow, which in my opinion is the most important factor when investing. Do you plan on developing or do you plan on wholesaling the land. Next is do you have the experience or do you know someone with the experience who you can partner with on the deal? What are your long term goals in real estate like a certain amount of assets or set amount of cashflow per month for retirement? In this area that you are wanting to purchase these lots, is there a lot of other development going on? Long story short, there are many niches within real estate and particularly buying lots, so it comes down to your goals and where you see yourself in real estate in the next 10, 20 or 30 years. Let me know if you have any other questions

@Cory Eldredge

Welcome to BP!!! So I live in the Atlanta market, but do not invest here because of the compressing cap rates and minimal cashflow. In Georgia I invest and mainly look in the Middle GA areas like Macon and Warner Robins where I see better cashflow, but not as much appreciation on the back end. Like yourself, I have also looked in the Birmingham and Montgomery AL areas where I have found similar returns like in the Middle Ga areas. Another area I would add to your list is Greenville/Spartanburg SC as this market has really been developing over the years and I'm seeing great returns here as well in this rising market. I hope this helps and Best of Luck!!!

@Account Closed

I'm glad to hear you are getting into the MFR space! I know a few investor up in the New York area and they have all started looking mainly down south and some midwest as cap rates have compressed significantly in this area and simply do not cashflow unless you get an amazing deal from a motivated seller. As others have mentioned, just make sure you get the financials (trailing 12/ rent rolls) to make sure it makes sense and cashflows from day 1. I've built a financial model (example on my website) that I help investors all the time with underwriting any kind of deal, so let me know if I can be of any assistance along your journey. I hope this helps and Best of Luck!!!