All Forum Posts by: Taylor Dasch

This is a great idea if it is possible! Would you be looking to finance the lot as well as the build? I'm not knowledgeable on any of this but typically you have to buy the lot cash(I think). Hopefully Andrew Postell can chime in or you can PM him he is very knowledgeable on this kind of stuff!

I am a beginner also but to me the beauty of real estate is that if you buy a property that has plenty of space to go down, if you cash flow well, then just hold out until the market appreciates again. Personally I think MeetKevin got burned out, he was putting out probably double the content of his biggest competitors.  I see it like this, If I have plenty of money and reserves, I will buy a property that I believe is a good deal, then next time I have the money to buy another one, I will buy another one. Regardless of the market, it is called dollar cost averaging, you will buy high and buy low.  The point is that you are doing something to meet your goals - If I would have listened to everyone and waited for the market to crash I would still be sitting with a bunch of money in my account slowly becoming worth less and less due to inflation.  Now that doesnt mean just go out and buy anything when you can. The hard part is to find the right deal that makes sense for your end game.  As for your post, from a beginner, I think that the market will slow down with interest rates rising, however I have no idea and my market personally has not slowed down at all.

11% cash on cash is pretty good. Is that a SFH? I can only see the first picture. If it is, you have to also take into account that renters for that type of property are few and far between I would probably increase the vacancy. If you are very familiar with your market and properties like this though, it looks like it could be a good deal. 

If you can live in it for a year, I would use an FHA loan and put down as little as possible, this will increase your cash on cash. But you would have to be sure your able to cash flow after you move out.  As soon as I got onto the house hacking train the duplexes in my market appreciated out of my price range. But my plan was to move into a duplex, use the decreased mortgage, from renting out the other side, as an opportunity to catapult into real estate investing.  If you have this opportunity I would definitely take it!

Wow great job, this looks like that amazing deal everyone is trying to find. I dont know why more contractors dont invest in Real Estate. You have a much better estimate of what it takes to fix up, you get a discount on labor, and you can also pay yourself more in the end. Would love to see pictures, I always wonder if investors with multi family properties find that it is better to do a nice remodel since everything is being torn apart anyways and the only cost difference is in the materials? I prefer a little better upgrades just because I may attract that tenant who wants to stay long term and has great job and payment history. Anyways, that is awesome, whats your COC? Looking forward to seeing your next one!

The most accurate way is to use a realtor as they have access to the MLS and what has sold in the area recently for the exact price it sold along with some terms such as seller concessions, type of financing etc.  When I was not working with a realtor, I just became really familiar with my market by analyzing deals. To start find a property that meets your criteria, then go to zillow or realtor.com and use the "sold" search, start with the map at where your property is and look at the houses close by, are they similar? If they are, and they are updated I write it down, and continue to do this 2-10 more times. The property that is most similar holds the most weight. Average out the properties to get the ARV. This will give you a general idea, then when you get really familiar with your market you will have a pretty good idea of ARV, I always take off about 5-10% just to be safe.

Real Star Property Management and Spradley properties are very popular in Temple, I have not personally used them.  Keep me in mind if you ever buy over here, i am a Realtor in Temple/Belton area and can run comps, rents, ARVs, etc. for you. 

Originally posted by @Juan Campos:

@Taylor Dasch

Hey Taylor thanks for your response 👍

I have A couple questions for you

I'm in tx looking at my first single family home for my first investment

Trying to stay under 250k preferably around 200 but even then I've been looking and searching on MLS, zillow, realtor, running the numbers and hardly anything cashflows, I'm taking cap-Ex,vacancies,maintenance,management,taxes mortgage insurance since I'll be using fha, and I end up with either negative cashflow or at most 100 in cashflow, but there's hardly any homes! 1 in 100 properties that I run numbers on are cashflowing only about $100 at most!

I have 10 months to get into my first property that's when I'll have enough saved up for my down payment..

but I see the market and I think I rather wait not really sure what's going to happen in the next 10 months though, any advice ?

Yes, my first piece of advice is if at all possible, purchase a duplex and house hack. If not, and if I could go back ( which I did) I would get a small property with a low payment so that I can purchase more investment properties. Now after that, I dont know what markets you are looking in. It looks like your in North Texas? My parents are in Mansfield and I know that there arent many if any properties on the MLS that will cash flow at all. If I were you I would look up either best markets for cash flow, go on zillow and find low entry cost markets, or visit different places and get a feel for where you want to invest as well as live. I invest and live in Temple, TX. Id say about 50% of the properties on MLS under 225k will at least have a positive cash flow. The property that I am currently renovating was 125k, going to put about 22-30k into it. The ARV will be 175-205k and is going to cash flow about 750/month. There are markets that are better than Temple and worse but the point is if you pick your market and research it well, then you will know when a good deal pops up that meets your criteria and can jump on it before anyone else does.

I have wasted quite a bit of money on trying to buy leads as a new RE agent, so in general, I am against it for this point in my career. However, I really like the idea of working with investors on this forum. Not sure if it would really produce a good ROI. Now that I type it out, I think I probably just need to try it and see if it works but any help would be greatly appreciated!

Like others have said, cold calling still works and it will add to your database also which is very important.  I use mojo dialers power dial and just have it in the background until someone picks up, this way I can do other RE related activities such as marketing, following up with leads, etc. If you dont like cold calling, you can go door knocking which I imagine would be a higher conversion rate per conversation.  I have done this very little as I a new, but plan to add that to my lead generation plan. You can also pay for leads which I am now learning is not a great investment for a new agent, run ads, get business from referrals and a lot more really, just google lead generation for Real Estate agents.