All Forum Posts by: Dean H.

I think it just gets old being bombarded by the endless stream of these mailings. My wife and I own a decent size portfolio of rentals in multiple states and it seems like daily we receive offers to buy assets we have no desire to sell from people with limited ability to close. I used to entertain myself calling them to see what they had for sale but that never yielded anything. Anymore we just toss them in a basket for fire starter and comment on how poorly most of the mailings are sorted and the waste of money that could have been used to actually invest in something. I get crabbier with age

@Account Closed

I keep things pretty simple.

1. Is the surrounding neighborhood decent?

2. Is it currently the worst looking on the block?

3. If rehabbed will it be the nicest on the block?

4. What will I invest rehabbing?

5. How much will it rent for?

6. Is rent enough to give me a decent rate of return? 

7. Is it manageable by one of my current property managers?

8. Do I have the cash to talk the talk?

9. Am I in the mood for another?

10. Is my wife in the mood for us to do another rental????????

See simple

That is the way you want it to work.

All depends on your back ground and abilities. If you grew up in construction, trades, landscaping, etc the answer would be different than if your in law or medical school or have " handy " back ground

@Andrew Acuna

Well Andrew I don't agree at all. If it wasn't for a couple of damn good property managers I absolutely could not do what I do. I own properties in two locations over 2000 miles from home and thank my managers every time I talk to them for protecting my interests and putting up with day to day issues that I don't have too. That being said if the properties were in my back yard I would still have professional  property managers so I could do what I do best and enjoy the most. I guess I look at it different than you, one of my  biggest fears is something happening to either one of them and having to replace  the quality partners in my operation that they have become.

@Dom J.

Thank You !!!

Your situation has reaffirmed my un-written rule number 6, NEVER buy any property for an investment that is in a HOA.

I would negotiate the best possible escape, lick my wounds and move on.

@Sonny Sripaijit

We buy based on cash flow only, we have gained appreciation but only from hard work.

We buy pretty tough properties, we do total rehabs to rent, this strategy is very risky and requires a great team and a lot of cash if things go bad ( THEY DO ) Turn key or MLS would be a better option if you don't have a fair amount of experience. We have been doing this to houses for years so nothing really pops up we haven't dealt with before but it still can ruin a deal instantly. You have to make sure you don't over rehab for the neighborhood. You will not get a decent return on the money overspent.

Rambled a bit but  hope it helps

@Evelyn Kop

My wife and I have owned property in Memphis for nearly 4 years. We took 3 years to reach the 5. We bought our first from a relative that was concentrating on KC,MO. The rest have come from tax sales, Auction.com, wholesalers, and being a good neighbor. They are doing good, we are all cash in Memphis, we know this is against BP strategy but for now we just want to know where we are and what we have. The majority of our homes are in the Whitehaven and Southhaven neighborhoods and have all been heavy rehabs except the first one. We basically reinvest all rent proceeds and our goal is 2 new ones this year the first of which closed in March. 

My wife and I invest in Memphis from 2000+ miles away. We owned 5 there before I took a trip to see the area for myself. I really felt we did an excellent job of purchasing using Google earth and our team on the ground there but that being said I highly recommend traveling there before you invest. It is not really a zip code situation, more of a block by block with areas of wonderful opportunities in many budget levels. Memphis is a wonderful city  and a great place to visit. Everyone I met was friendly and the BBQ was great.  

I guess its time to dig up the door to the Y2K bunker in the backyard and update the supplies and the ventilation system

Come to think of it maybe it wouldn't be good to survive and stick your head out to a wasteland.

I think the politics of land lording in the PNW area is a much bigger issue for investors