All Forum Posts by: Daniel Mills

@Don Spafford - I was impressed with his podcast. Thanks.

@Don Spafford - is that Andrew Propst?

@Account Closed I sent it to you with a colleague request. I would like to post it here but I want to give credit to the original poster. I will look to see who it is.

Hi, I have one Section 8 house in Fultondale that’s worked out well for me. I am still looking for more. One of the turnkey providers there posted a very detailed analysis of the neighborhoods. I will PM it to you. BTW, many people have recommended Signal property management to me. One question, are you going to rehab these properties or are they in rentable shape already?

Thanks for your response guys.

@Hadar Orkibi , we are still in the process of deciding our criteria doing our market research. I had just talked to my partner of the possibility of this before I posted.  We actually have started a Google Doc to identify some markets with good potential, including the ones I'm already in and looking at some potential properties in each market. Soon we will narrow down our criteria. I own a number C class houses in Memphis that perform really well for me, but I have a great PM team that works well in that space. Have you had success with that class or are you working mostly in B properties?

@Don Spafford - Thanks I will PM you about this. My only concern with working in more rural areas is that we won't have the PM or service people to deal with the properties. We won't be managing these our selves as I am in Japan and my partner is in Hawaii. Are there good PM companies in your area?

Thanks,

Daniel

Hi guys,

I have been doing SFH for a couple of years now in Idaho, Tennessee, and Alabama. I am interested in starting to look for small multi-family (2-4 units) with a business partner who hasn't used any of his conventional loan slots. I am just starting to do some research, but I am wondering where there is still an opportunity to find these types of properties. It seems that in some areas you only find small multi-family in war zones or it's next to impossible to find a good one because investors have already ravaged the market. What do you think? Are there still opportunities to work in this space and if so, where can I find them?

Daniel

Hi @Gerard J.

Here are the purchase prices and rents for my Memphis properties - they are all turnkey and have been the easiest no-hassle properties - 

$55,000 - $695/month

$61,000 (I have two at this price) - $705/month

$70,000 - $795/month

I also have two I bought in Boise the traditional way with a realtor. Both are $120,000 and I rent them for $1300/month. I just refinanced both of these since the price went up to $180,000. One of these burnt down in 2016 and I was able to manage re-building while out-of-country. 

I have one more turnkey in Alabama which was $95,000 and I rent it for $975. That's section 8.

Now, I am just working with real estate agents in Birmingham and Huntsville to close out my conventional loans. 

I said I had 8 properties but I included my personal residence in Japan - 7 rental properties. BTW, they count my house in Japan as one of my conventional slots even though it's a Japanese bank loan. 

@Mariusz Bojarczuk, the house is not in Memphis. I would prefer not to call out the turn key company because they have treated me well, so I don’t want to name the location but it’s in a rapidly appreciating area.

I do own 4 other houses in Memphis though. They cost between $55,000-$70,000 each and cash flow really well. 

Update: The company asked the appraiser to reconsider and provided him additional comps. He refused. They then offered to meet me halfway between the appraisal price and their price. I refused saying that as an out-of-state/country investor who is not an expert in their market, I must rely on the appraiser's assessment for price. They were understanding and are returning my earnest money right away.

As I stated in previous posts, this was a bit of a risky play for me where I was going to buy a break even property cash flow wise that had good appreciation potential. The other 8 properties I own are all about cash-flow and as a good W-2 income earner I thought I could risk this as part of my portfolio, but I think from now on I will stick to the fundamentals - single-family homes in B areas that cash flow well. On to the next deal!

Thanks for the advice guys. 

@Michael P. - I hope this explains SMILE - SMILE