All Forum Posts by: Elijah Friedeman

@DeAnna Caston, congrats on the properties! You're in a great position to enjoy some great results from REI.

Both of @Dustin Lunceford's ideas are solid. Since you own all of the properties outright, a cash-out refinance on one or two of the properties should get you the cash you need to update the other properties. Low interest rates right now make that option really attractive.

I'm in the Jackson, MS area too. I'm just starting out in real estate on the side, but if you ever want to bounce ideas off someone or talk more about rental properties, I'm happy to help.

I am new to REI, and I'm trying to figure out my first SFH deal. I'm from Jackson, MS, so I've been looking in the area. But I'm having trouble finding attractive deals. I've found one potential C- SFH off market, but I'm still evaluating it.

At one point, Jackson was a major destination for out-of-state investors, but that surge seems to have absorbed a lot of the good SFH opportunities.

Any suggestions for the best way to approach the current market? Should I wait it out until the market is more attractive? Or is it better to start with even a mediocre deal?

Assuming all your numbers are solid, this is a homerun of a deal. You need to project for CapEx, but that will still give you an amazing cash flow on this property.

How did you find this deal? A $60k all-in property that yields $1200/mo is unheard of these days. Congrats!

Hi @Susan Maneck, thanks for the advice! It's great to connect with someone else in the Jackson market. 

I'm ready to put more money into this house--your $5k number is a helpful guide.

This house is a 3/1 and relatively new--built in the 60s. I'll have a full inspection done, with a focus on all the key systems. I want as few surprises as possible! 

The zip code is 39213. Glad to hear that about rent at your 2/1. That's encouraging. Thanks for the Trustmark tip!

@Christopher Cole It seems to be a really good situation. I'm not sure what's motivating the current seller to get rid of it--but it may be that he's old and the current tenant is leaving. He may not want to deal with getting a new tenant. I am being cautious in exploring the deal, however. Also, I don't think I'd get $950/mo--that seems too good to be true.

Thanks for sharing that insight from J Scott! That's my leaning, but several people suggested that I immediately relist the property for a quick profit. I ordered the BRRR book yesterday!

@Rolly Weaver The home is in Jackson, MS, where I live. I'll have a better idea of the home condition once the inspection is done. I still have some digging to do. I don't have a refinance secured yet, but I'm optimistic I can work through some of the local credit unions to make something work. Even if I can't finance, I'd hold on to it and let the cash flow work its magic.

Thanks for sharing your experience! I'm hoping for a similar outcome here.

I'm new to BP and excited to be part of the community!

My situation: I have been learning about REI for a while and recently decided to start actively exploring opportunities. Today a realtor contacted me about an opportunity to pick up an unlisted house for less than $20k (3/1, 998sf). Current tenant will be out in November. House is in good condition, with a relatively new roof--single owner for the last 50+ years. Slight foundation issues, which is normal for the area. HUD would pay $950/mo in rent. The BP calculator said the same. I'm conservatively estimating $700/mo.

I'm going to look at the house tomorrow. If it checks out, I'm planning to pay cash to close quickly.

My REI Goal: I want to create $10k/mo in cash flow so that I can have financial independence.

My question: Several realtors I've talked with think the house could go for $35-40k on the market. What is my best strategy: rent it out or sell it? 

If I kept it, I would likely add $2-4k in improvements, then refinance and pull out the equity to use for other projects. The monthly rent should more than cover that refinance. Or I could quickly sell it and make a nice project to leverage for other projects.

What would you do in my situation?