All Forum Posts by: Danny Taylor

@Russell Brazil

Good one. Been loving this podcast. Thanks for the suggestion!!

Looking for a good podcast for realtors dealing with lead generating techniques, systems, tools etc. Anyone have any favorites?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $32,000
Cash invested: $15,000

Our first deal to break the ice. This property needed very little work to turn. Put in a lot of hard hours, overcame a lot of fears, did not listen to the nay sayers, and learned a TON!

What made you interested in investing in this type of deal?

Cashflow possibilities, breaking into the real estate investing opportunities, and learning new concepts

How did you find this deal and how did you negotiate it?

This was a HUD property on the MLS. We understood we could turn the property with very little capital expense and offered close to listing price.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

"Evicted" the cats living under the house. Replaced the ductwork that they had torn to pieces. Replaced all interior doors, painted and refinished the kitchen cabinets. Added a closet to the second bedroom and fixed some drywall/plaster issues. Installed gutters and cleaned up the landscaping. New fixtures in the bathroom and cleared some plumbing issues.

What was the outcome?

We were able to BRRRR this property within 6 months. Cashflows each month. Value went from $30,000 to $60,000.

Lessons learned? Challenges?

Basic project management and what it takes to turn a property. This was a great property to learn on as there were very minor problems to deal with. Contractors can be flaky. We burned through two contractors within a 2 month time period.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $32,000
Cash invested: $15,000

What made you interested in investing in this type of deal?

Cashflow possibilities, breaking into the real estate investing opportunities, and learning new concepts

How did you find this deal and how did you negotiate it?

This was a HUD property on the MLS. We understood we could turn the property with very little capital expense and offered close to listing price.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

"Evicted" the cats living under the house. Replaced the ductwork that they had torn to pieces. Replaced all interior doors, painted and refinished the kitchen cabinets. Added a closet to the second bedroom and fixed some drywall/plaster issues. Installed gutters and cleaned up the landscaping. New fixtures in the bathroom and cleared some plumbing issues.

What was the outcome?

We were able to BRRRR this property within 6 months. Cashflows each month. Value went from $30,000 to $60,000.

Lessons learned? Challenges?

Basic project management and what it takes to turn a property. This was a great property to learn on as there were very minor problems to deal with. Contractors can be flaky. We burned through two contractors within a 2 month time period.

Hey guys!  We have a question that we are having a hard time coming to terms with.  The problem is that we live and invest in a small rural community.  Every time we have offered on a house we hear that the seller magically has multiple offers.  Our first rental property was on the market for two years as a bank foreclosure.  It had gone to auction multiple times and had never sold.  A local realtor then listed it for the bank and did a price reduction. It sat on the market for another two weeks before we placed an offer for the complete asking price.  Later that day we were informed that there were multiple offers and that we needed to give them our best and highest offer.  So we offered more.  We also questioned the ethics behind the sudden multiple offers and eventually won that round.  We have since offered on 5 or 6 other properties that are priced right, only to get the same story.  Suddenly multiple people are interested in the exact same property that has sat for months on the market.  

So we just put another offer on a house last Thursday.  The seller countered but was still a little high so we countered her counter.  We learned on Saturday that the seller did not know where she was going to live after the sale so we told our realtor to let her know we would just let her rent the place until she found other accommodations.  Sounds like everything is going to work in our favor right?  No.  The listing agent asked for an extension of the offer until 5pm on Monday.  We agreed and found out this afternoon that we had lost the offer.  Because this is a small town we pushed for more information and found that the listing agent had brought another buyer to the table that was willing to pay the listing price.  We suspect that this buyer will be another investor in the area that works with the listing agent.  The questions that we have are: Is this unethical behavior that should be addressed?  Is this just small town "politics" at play?  How do we win in this climate? 

Any expertise is welcome!  We're tired of losing out to these guys.  Our goal is to have 5 rentals purchased, turned and rented by the end of the year...

Update...

We have closed on the the property and are currently in the middle of rehab.  We are probably about a week or two out from completion and were shooting for the beginning of April, but we over shot that.  The secondary goal was to be done before the end of the school season.  We should be ok there.  We closed on the property at 35000 and are expecting a 600 to 650 a month rental income.  We also knew going in that there would be some capital expenses that would need attention.  So far we have replaced the ductwork and have had some closets built in.  Other than that it has only needed paint and deferred maintenance.  We have also noticed that the house next door is vacant and have not seen anyone there in the last two months so we may have a lead on an off market deal...  

I was just listening to Kent's podcast this afternoon.  We are currently listening to (and taking copious notes on) @Brandon Turner's book The Book on Managing Rental Properties.  We've knocked out Rich Dad Poor Dad and Rich Dads Cash Flow Quadrant.  We are trying to get as much education in this area as we can!  We are also considering making an offer on a house that will be a live in rehab but will also be a conversion from a single family to a triplex.  We're still trying to figure out if the numbers work but are having a tough time factoring in the conversion costs.  Thanks for all of the great reading suggestions!  

Hey Andrew,

My wife and I are new to RE investing, but we have been researching the Vincennes area rental market and have decided to buy one of these cheaper properties to see how we get along.  I can tell you that the market is flooded with rentals and there are a few key players.  Houses within walking distance of the campus generally can find tenants, but they are usually students that only rent for 9 months or so.  You are correct on the exit strategy.  It is tough to sell in that market.  With so many inexpensive homes there and the median income being so low it's a tough market.  However, rent is pretty good and people always need someplace to stay.  The other concern we have is that the credit rating in these small towns is usually less than stellar.  We close on our property in the next week or so.  It's a foreclosure that is almost turn key.  We are expecting to have it on the rental market by April.  It's a nice clean house in a C neighborhood so were hoping for the best.  I know that's not much info but I hope it helps some.  BTW, were expecting this to hit the 2% rule and it should cashflow.  Most of the landlords I have talked to in the area are long term owners using the rent to pay off the properties and holding them what seems like indefinitely.  

Hey everyone! My name is Danny and my wife, Zella, and I are starting our investment career! We are based in a small town in southern Indiana and are currently investing in our hometown market. We are also living in a flip house that is almost completed and will be ready for the spring/summer sales market.  Additionally, we are about a week away from closing on our first rental property as well.  It's a 3bd/1ba SFU that we picked up for 35000 and should rent for 600 to 650 a month.  We're excited to see just how everything in the rental world works. Evenings for us have been spent collecting the necessary forms for rentals and getting our ducks in a row.  The Bigger Pockets podcasts are a part of my daily commute and are an absolute wealth of knowledge! Brandon Turner's Book on Managing Rentals has also recently been added to the daily commute as well!  We look forward to meeting and interacting with everyone here at BP!