All Forum Posts by: Eric C Gunderson

@Daniel Kelley Thanks.  Good points.  I just keep getting hung up on the 20% as I'm new to the game comparing to my stock portfolio that is now just back to flat for the year.  Actually, some accounts still in the red.

@Jaron Walling Thanks for the input.  It's just frustrating that you need to put a fair amount in the rehab to max out the rent levels in the town with ceiling on home value.  I'm new to the game so I'll get better at finding "better" deals; especially in a different market.  Just nice know vacancy is a non issue.  Again, thanks for the feedback.

@Jaron Walling Trust me, the numbers are correct. I have another duplex here and already doing virtually the same thing in COC (17%). I had 30 potential renters to choose from. This area has virtually zero vacancy but its a depressed small town with ceiling on house value. No new builds, houses from turn of the century. If you believe the numbers would you do the deal?

I have a BRRRR property in escrow with opportunity to backout due to some inspection items the seller is not willing to fix. The deal will provide over 20% Cash on Cash but all in cash will be essentially at the expected appraisal value. Therefore, I'll leave in quite a bit when I refi after rehab but make virtually nothing when I sell it down the road. The area doesn't appreciate (depreciated over last ten years or so) at all so time will hurt me more than help me. My analysis/numbers are solid so my question is should I buy a property that will indeed provide a 20% plus return knowing I'll make nothing on the back end?

@Nathan Gesner That's a red flag if they can't pay the app fee!  Thanks

@James Wachob Thanks.  I was told "this market" doesn't charge the fees and I called BS.  Wanted a little support from the group to make sure I wasn't crazy.

@David Hutson Thanks for the feedback.  Much appreciated.

@Adam Martin thanks.  Good approach!

@Joe Villeneuve I completely agree. I guess I got sideways reading thru some of the comments on the rent versus buy discussion.  Appreciate your insight.

@Justin Thorpe @Joe Villeneuve I've thoroughly enjoyed the debate.  Thanks for providing alternative viewpoints on the subject.  For me, I happen to agree with @Justin Thorpe.  All things being equal I will always purchase in lieu of rent.  My wife and I have moved quite a bit throughout the years (10 Homes and 13 states) and while I have not always came out on the plus side, ownership tends to be a more lucrative approach more often than not. RK provided an alternative mindset that got lots of us thinking differently.

But, what do I know.  I'm a high level executive that recently decided it was time to start investing in real estate.  We are only a few months in with two duplex's purchased and currently being renovated.  Let the fun begin!