All Forum Posts by: Eric James

Increased equity and appreciation are what really matters to me. However, without positive cash flow I wouldn't be able to get financing for additional rentals.

0 Votes

Get a lawyer to check in what authority the county and city each have regarding subdivision etc.

1 Vote

The cost of business cards is very low, in relation to looking unprofessional when someone asks for a card and you don't have them.

1 Vote

Columbus, Ohio

I'd work with anyone who has a good deal. So far I haven't seen anything from a wholesaler that I'd want.

3 Votes

Quote from @Theresa Harris:

As long as both mortgages are covered by the seller, why should it matter? Would it matter if you bought a house that was paid off vs one with a mortgage?

Yes, the issue isn't how many mortgages there are. It's if the seller can pay them off to sell the property free and clear.

2 Votes

Quote from @Pete Harper:

Quote from @Eric James:

Quote from @Pete Harper:

Quote from @Rakesh Balavanthapu:

I am a new to REI and trying to find my first deal. Have been listening to BP podcast episodes from 2020 and earlier and the numbers were no where near what they are today.

I have analyzed about 30 deals in Atlanta, Dallas and Columbus markets. Couldn't find a single property where it is meeting the 1% rule. Agreed that I looked at only MLS listings, but still.

Am I looking in the wrong place ? Or am I making any mistakes in my analysis? Not sure where to go from here.

Also, is there a place on BP where we can find market analysis? I am a pro member.
Please let me know how you guys are dealing with this

1% rule is not dead, you are looking in the wrong place. I just purchased a 2% rule property in Central Texas in March. My portfolio average on 38 units is 1.6%. I still screen at 1%.

1) You need to dig much deeper. All the easy stuff on MLS has been snapped up.
2) Look for small multifamily; duplex and foorplex. Much easier to cashflow with multiple units.
3) Look for off-market deals. I send out "yellow letters" using the county tax website. I also target tax auction properties.
4) Look in the secondary and tertiary markets outside the large metroplexes.
5) Be prepared to do renovations.

Purchase price from tax auctions would get more than 1%, but the problem is you can't invest money in repairs or refinance them for an extended period of time.

In Texas only six months on non-owner occupied. During the 6 month option period you can still charge rent. I purchased a property for $27k that rented for $500/month as-is. Still a 1.85% deal.

Yes, it's great when you can find habitable tax sale houses. While it's 6 months for previous owner to recoup their non homestead house, title companies won't give title insurance for much longer than that. They are afraid of someone contesting whether the tax sale should have even occurred. So refinancing takes a while.

0 Votes

Quote from @Pete Harper:

Quote from @Rakesh Balavanthapu:

I am a new to REI and trying to find my first deal. Have been listening to BP podcast episodes from 2020 and earlier and the numbers were no where near what they are today.

I have analyzed about 30 deals in Atlanta, Dallas and Columbus markets. Couldn't find a single property where it is meeting the 1% rule. Agreed that I looked at only MLS listings, but still.

Am I looking in the wrong place ? Or am I making any mistakes in my analysis? Not sure where to go from here.

Also, is there a place on BP where we can find market analysis? I am a pro member.
Please let me know how you guys are dealing with this

Purchase price from tax auctions would get more than 1%, but the problem is you can't invest money in repairs or refinance them for an extended period of time.

0 Votes

If you don't have a large amount of cash there's only one way I know of to scale somewhat quickly: BRRR or other value add strategy. You won't do it buying one rental a year, as you have realized.

0 Votes

Obvious first question is: what happens when the tenant stops making those monthly payments? Does their policy lapse and become invalid?

Also, a $10-20 /month payment would take years to equal a security deposit, much less make profit for Rhino.

0 Votes

All Forum Posts by: Eric James

Eric James has started 22 posts and replied 2235 times.

Post: Buying a property that will inevitably rent at a loss

Post: Finally Someone Is Talking Some Sense!

Post: Purchased unauthorized subdivide flip

Post: Is having business cards necessary?

Post: Why should an investor work with a wholesaler over a real estate agent?

Post: Seller didn’t disclose property has two mortgages

Post: Is the 1% rule dead in 2023 ?

Post: Is the 1% rule dead in 2023 ?

Post: Goal setting: 10k$ per month in cash flow in 10 years

Post: Anyone Using Rhino as an alternative to tenant security deposit?