All Forum Posts by: Derek Okahashi

I baited you a bit with that title. I'm not looking to get taken for a ride, but this is what's on my mind. I have been listening to podcasts, reading books, networking and being mentored to a degree, and analyzing deals. I'm also in a state of working two jobs with a 3 year old and a newborn at home so that I can reach my ambitious savings goal. Agents I've talked to seem a bit flaky though. Although I have some money, credit is great, and do want to do a deal, it seems agents can't be bothered with too much more than their automated email lists. When I ask about things like deferred maintenance/cap ex on a deal I'm analyzing, I often get crickets. I will succeed in growing a portfolio. I have never failed in something I've set my mind to (I think we are all capable of this; no arrogance intended). I'm just a little surprised at how unresponsive people tend to be when someone is looking to invest large amounts of money.

Sean Davidson where do you invest? I've heard that once you get in to Nashville it's tough to work through policies and red tape. I'll be in SH in July/Aug visiting family and looking at properties.

Ron Flatt thank you for your reply. Can you elaborate on what you mean by 2 to 5 year deals? I mean, it sounds really nice to have several properties paid off in 15 to 20 years. I am looking at Tennessee and Georgia because I have boots on the ground there. I have a better feel for the market until comfortable analyzing the locations and if any big cap X stuff comes up I feel like I have a trusted source there. I appreciate your reply and your next reply.

Dani Beit-Or I agree, although a lot of people work in Brentwood and Cool Springs and Columbia does work for those people.

I'd be looking for a single family on a smaller piece of land (big lots are common out there). Partial rehab is doable but I don't have a full team to take on a full rehab. Basically my parents may be able to manage a partial for me. I prefer Williamson County. 

From what I can tell a 225k home off the MLS will rent for about 1600-1800/mo. Not great but not California bad. I am also looking st Augusta, GA. Do you have any experience in that market @Dani Beit-Or?

@Dani Beit-Or thanks for the reply. Are you looking at value adds? I've been to Spring Hill once or twice a year for the past decade and watched it grow as have I. Nashville commuters are still attracted to the area, especially families who want to be in Williamson County. Job market is strong and fairly diverse. You think it's too far out? I feel that way about Columbia (where the numbers seem to work a bit better) but local connections insist hat columbia is still within the nashville commuters range. 

I will be in Spring Hill in July to visit family and look at properties. 

@David Krulac are you buying these at auction or from a wholesaler?

NELSON DUCKSON I'm thinking about buying in a few different areas of the country intentionally. I figure if I'm in a few different economies then I am diversified... don't think the benefits add up to the risk and added difficulty?

David Faulkner while I often appreciate your devil's advocate (that seems to be your common role) I am going to also vouch for CAP rate as a valid tool to measure a return on 1-4 units. I can't do this because I know half as much about REI as you, but I do have a friend/mentor with a several million dollar portfolio who uses cap rate for 1-4 unit properties. If he's using it, I'll use it.

@David Faulkner how about 10-15 doors and I don't stop working completely? Thanks for your devil's advocate play. It is sobering and necessary. I am embarking down the "rent while investing out of state" path as well and appreciate the perspective. I don't plan to stop working entirely or maybe not at all. I enjoy my work and make good money.