All Forum Posts by: Dean H.

That's what is great about real estate. You can do it and have no debt at all. it is going to be a hell of a lot of work.

1, Move to Cleveland, Detroit, Flint, Birmingham, Memphis, wherever

2. Buy for cash the cheapest SFR houses you can that you, by working your butt off can make rentable for all in 15k each.

3, Rent house out possibly even on section 8

4, Repeat 8 times

5, Self manage to save money

6, Live in the 8th home

7, With no debt you should be able to net 428.00 after taxes giving you 3000.00 per month

It's doable but remember YOU would have to be there to make the cap ex affordable and look after everything. plumbing, roofing, cleanouts, EVERYTHING.

I posted this to demonstrate that its all in how the question is worded. can it be done? heck yes, will you do it this way? probably not, is it sustainable? Unlikely.

Don't misunderstand this as a recommendation, it takes special people to deal with these properties. I was just demonstrating that darn near anything can be done, with sacrifices and hard work.

A burned out house is a scary way to go if your new to the game. Accurate repair costs are nearly impossible to estimate until partial demolition is done to really see damage that needs corrected. I recently purchased a repo that a rehabber got 95% done after a fire, his estimates were so far off he lost the entire project and we bought for 28% of ARV and just had to trim out kitchen and put on light fixtures. The rehabber literally spent more on the rehab than the ARV of the property.

Did the seller collect on an insurance policy and won't reinvest back into the property so he will let you sell it instead of boarding up and walking away? Fun game in the hood

Karen, We invest in areas that traditionally have hardwood most of which has been carpet / vinyl overlaid in years past. Our go to program is to strip out the overlay product and restore the hardwood as best possible. If in terrible condition we will floor enamel the hardwood with thoughts of vinyl plank at a future tenant turnover.  Our rule in working class neighborhoods is a good roof and tight exterior immediately to protect our investment, then make them cash flow there own rehab at a turnover. We like to keep clean up to a minimum and carpet is just not an option expense wise. If we were in better areas we would probably use a good quality laminate and they can bring area rugs but in our situation the best of ours are vinyl planking with possibly tile in bathrooms, and they still bring rugs.

It as normal depends on the area and tenant  base

We use a class for each property, sub class for each unit if multi family. Each property has a fixed asset account to track purchase costs. We base expense accounts by tax form lines for simplicity. We keep books for three landlords and everyone likes the reports and the simplicity.

Carpet is not in my Rental vocabulary

It's like a crap game, some times you get a great roll,,,,,, sometimes not so much.

Well Zac maybe after 16,7 million in cash flow they wont care about appreciation. Yeah I know that's gross but net should be 4 million so 300K per year on 3.1 million works for me. Oh yeah  they would still have houses to sell Too

I hope they have purchased one or two in every block I have one. My goal is to have the nicest home on the block and a little competition in this goal might just further improve properties and attitudes in the neighborhoods.

@Dave Lin

Well too bad you feel that way but I guess I don't have to worry about you out bidding me on my next buy & hold

Discussing your post with my wife right now.

My wife and I are very conservative mostly cash investors.

She says the most important part is communication and having an ultimate goal. When we started she was always concerned about how it was going to work out but as the money started flowing she became an active member of the team. She just recently purchased an Auction.com home with her SDIRA and now I don't know if I can hold her back.

She listens to podcasts with me and we do financial analysis on properties together so we both know the facts of the transactions and how it fits into our long term goals.

We are long term buy, rehab and hold investors and are just plugging away buying when cash flow allows and after a few years its about two properties a year and the ball is really starting to roll.

Our two cents