All Forum Posts by: David Lowe

@Leland Barrow This was not a long term flip/appreciation play. It was a cash flow play. Going on the 2% rule however, it would have meant that we would have had to get the property for around $215k which in Hyde Park Austin is impossible. The property has appreciated well which will obviously make up for the sub 2% rental yield. 

@Vincent Guerrero What markets do you invest in and how are things going? 

@Joe Villeneuve I'm inclined to agree as the US is effectively the size of a continent so difficult for a "one size fits all" approach. How do you calculate the ARV?

@Richard Dunlop Do you move frequently to follow the hot markets? How easy is it to have to build your team each time for a new market? 

I have been reading about the 2% rule but seriously questioning its accuracy. I got a great deal on a house in a desirable area of Austin for $297k. The rental we are getting is high ($2500) for the area. However, according to the 2% rule, the rent should be $5940. I don't know many places in New York where you would pay that for a comparable property. What % have you found when dealing with rentals? 

If a property needs to be rehabbed, what is the best way to calculate an ARV so you can work backwards to see if it is a good investment opportunity?

@Jonathan Johnson
Nice additional question. On my 2nd project, we paid our contractor the first 50% for some work and then his business got in trouble and he kept the money. We had to threaten legal action and fortunately got the money back minus legal fees. 

@Aaron McGinnis
I like that idea of the one-stop shop. Bring the job to the contractor and have them use their architects/designers to give me more time to focus on deals and growing my brand. Is this approach typical or exceptional? 

@Jonathan Harris 
More great feedback. I wish you were working in San Diego because I would want to partner with you! Do you have any examples plans that investors have brought to you? I don't mind if you remove the company name and address of course. You can find my email in my profile or private message me.  

@Account Closed
Thanks for the compliment. I feel that contractors are often under appreciated and on the receiving end of the investor's whip too often. I am always keen to understand who I am working with and then try to make the project exciting for them as much as it is for me. 
Do you have any examples of "high maintenance" projects?