All Forum Posts by: Josh Dillingham

have you shopped around for loans? seems like you could get a 30 year fixed for less than 5.5% I just financed a single family rental for 30 years fixed at 4.85%

I wouldn't recommend direct mail marketing if you only have $10k. you'll spend all your money generating leads and won't have any money to close the deals you find. when I started i had $12k saved up and bought a 3 unit property for $122k with a 3.5% FHA loan. this has allowed me to live rent free as well as cash flowing about $200 per month. I spent the first year and about $5,000 fixing up the property. it has worked out very well and has been a great introduction to landlording. with the cash flow and the money I was saving from not paying rent I then bought a distressed single family property for $15k cash I put $8k into it and refinanced the property for $74k. I am now using that money to purchase a 5 unit property which will generate about $1500 in monthly cash flow after all expenses and cap ex savings.

Google search on passive income. I saw Brandon tureners big mug talking about real estate. at first I thought it was classic internet marketing trying to sell me something. but here I am 4 years later going from $10k to $100k+ in net worth because of what I have learned on bigger pockets!

I misread your original post, I was thinking you were flipping it.  When I am analyzing rentals I figure out my Max offer based on what I want to end up with for monthly cash flow then I work back words. So if an offer of $30k would get me my desired cashflow of $250 after all expenses (including saving for cap ex property management and maintenance) then I would start with an offer somewhere below that 30k mark and if the seller comes in higher you move on.  I like to have a concrete max offer and cash flow worked out before offering, it takes the emotion out of it.

In order to know how much money you should put into rehab you'll need to have a very good idea of what comps have sold for that are in nice condition. Then you can find out what kind of finishes those houses had and match them. You'll need to make sure your ARV will actually be high enough to end up with the 88k you are hoping for after paying for the rehab.

Based on your numbers the "70% rule of thumb" would come to an offer of 27k, but that is just a guideline. When you bring up the needed repairs I wouldn't be surprised to here something along the lines of "I know it needs 15k in repairs, that's why we are selling you a 60k house for 32k." Do you have a specific $ amount of profit you are looking to make on the deal?

If it's on the MLS and not getting any offers it's probably not an issue of marketing the property. It's probably the property itself and the price. Anyone looking for a property on Craig's list will also be looking on Zillow, realtor.com etc which will have your most listing. I usually check Craig's list to see if there are any off-mls deals at a bargain.

Maybe take it off the market for a month, do some minor work that gives it a more updated look (paint, landscaping etc) and put it back in the market at a competitive price. This will reset the days on market which will turn buyers off if they see the property had been on the market for a while, it makes them think there is something wrong with it.

https://www.digitaltrends.com/home/zillow-to-buy-h...

Curious about your thoughts on this article. It sounds like the programs is already live in Phoenix, has anyone there felt it's effects?

I'd say if you wanted to get reimbursed for the earnest money that probably should have been spelled out when you signed the assignment contract.  You could try getting it from the end buyer, or you just learned a $150 lesson. it could be worse.

@Peter Bui those are some pretty small margins.  one month of unexpected vacancy or one cap ex item could wipe out your cash flow for an entire year.  It sounds like you may be emotionally attached to this particular property which can be dangerous.  if I were going to make less that 6% cash on cash return on an investment I would stick my money in the stock market and not worry about being a landlord.