All Forum Posts by: Dean H.

God forbid I mention this on BP but maybe the prudent use of leverage and the diligence to maintain a healthy pile of reserve cash would put the " tortoise " investor ahead of the " hare " investor if and when a correction occurs. And I personally think the strategy works so well i'll just keep buying when cash flow allows, see you on the other side of your "correction" 

Hit him hard ASAP with proper legal notice. Sometimes this makes them fly right and pay on time forever, sometimes it doesn't but you will at least know. They have to know you mean business and it's NO PAY / NO STAY !!!!!

Vinyl Planks

Johnathan,

My wife and I have investments in B to C areas of  Memphis. We have spent all different amounts on the rehabs as we tend to buy properties that need extensive work. 

I'd just like to offer a little advice. Do not over rehab for the area or street that you chose to invest in. We try to have the nicest home on the block but we don't go out of our way to make it a "Beverly Hills" mansion. Save your money and buy more houses. That being said we do rehab exteriors extensively because we are long term holders of property and we want them weather tight.  

I hope the advice is worth what you paid for it LOL

@Kevin Manz

Kind of a side note Kevin. We have used a couple of Mini Split systems lately and love them. Why does no one even mention them as options. Is it temperature zone or cost or ?

Thanks,

Dean

Market Maps makes the best wall maps I've seen

@John D.

John I'm a man of few words,

NO PAY= NO STAY

LOL

@Brendan L.

I hope my post didn't confuse you. MY goal is to have the nicest appearing house on the block that is RENTABLE inside. I DO NOT CARE what it sold for in the past. I ADD ALL THE COSTS  to have it in this condition and then compare with SALE COMPS for the area. I then study rent rates in the area and calculate how long it will take to REALISTICLY GET MY MONEY BACK.  If I like the numbers I pursue the investment, if it doesn't I MOVE ON.

Be very careful over improving a property compared to the neighborhood. I sounds like a great idea but if no one else in the block tags along you can end up just overinvested. Sure the folks driving by say WOW but it might not make you any $$$$

I invest rehab to hold in working class areas mainly with cash so my ideas don't fit the " normal " here but if  the theory fits use it.

@David Faulkner

David I voted on the great joke just make sure you give the credit to the 5 year old, lol

If your in a market  where you can't realistically bank on appreciation be very cautious " upgrading " a property for the sale of "making it nicer"

Personally we invest heavily in these areas. We know from the start not to bank on appreciation and we address safety issues, roofs, and exterior problems immediately.

Once those issues are stable we only do what is needed to make the unit rentable in its market. We then enjoy some cash flow and save some for improving at a turnover.

We don't try to unrealistically push rent rates by improvements until we know the area and tenant base and what THEY think is worth paying more for.

If it works like it is why change it?