All Forum Posts by: Drew Y.

@John Woodrich Can you send me that referral as well. Would love to keep it as a back pocket number if and when an eviction need comes. 

I decided last year to embark on a different strategy than my normal buy and hold investment strategy given that the market for buy and holds in California has become a lot more difficult where we have seen CAP rates move to less than 4 in some areas (San Francisco, Bay area) and only 6-7 in sub markets such as Sacramento and Stockton.

The math has been pretty straight forward. Flipping California properties 200-500 acquisition price points with normalized net returns of 15% has allowed us to capture between 30k-75K per project average to around 52.5K per project. This approximately gave us 250K to buy a passive purchase all cash and not have to worry about the interest payments, giving us the option of cash out refinancing or keeping our powder dry for other future acquisitions.

I most interesting thing about this decision though is it has change the mindset of my previous investment strategy. Moving to a dedicated flip 5, buy 1 buy strategy,  help me move away from a "transactional" mindset , flipping with no goal other than to increase the size and volume of flips (which was becoming exhausting) to a grower mindset. The flip 5 , buy 1 strategy has allowed me to take my profits off the table while intentional growing my passive income stream and reducing my portfolio risk. By planting these fixed seeds that are and continue to pay dividend, it stabilized my income flows and concurrently allowed me to build up reserves for additional purchases. 

We are currently working on 3 flips in california and 2 in florida right now and will be heading out of state for our next buy and hold. I am excited about this mental shift and it has been a refreshing way to change the transactional mindset that flipping had become. 

Free Advice: Create two LLC's one for flipping and one for your passive as this will prevent domino effect if one aspect fails and make sure you setup proper firewalls to prevent commingling funds.

@Brenda Chen Thanks for hosting. Will be there looking forward to it. 

Cheers

unfortunately I will not be able to attend on 9/27. Hopefully you will be hosting another one soon. If this is a small group, I can probably provided a location to meet at a sushi restaurant in San Francisco . (10-15 people) 

@Allison T. thanks for the recommendation I will give them a buzz. 

cheers

@Mark Allen would love to see the deck/pitch that you put together as well. 

@Richard F.  would love to get those recommendations for a PM in B/C areas. 

@Allison T. did you ever find a trust worthy property manager. I am looking for a manager as well. 

@Kim Meredith Hampton when you say "one person" shop is that mean leasing, repairs, intake for 100 properties by 1 person or do you mean one manager with responsible for a that team . (4 people : Manager, handyman, leasing intake)