All Forum Posts by: Erik Bottema

Will not by doing these at our properties- we take good care of them and unless we get cited by the city, forgot this crap 

550k ain’t gonna get much in SCV. Either get a cheap condo in sylmar or move up to Palmdale. Personally- I’d have her rent a senior apartment for less than 2k a month, pay the insurance (1k is good for someone with medical issues) and save the rest into something making 5%+. If she can pocket 2k- pay all the debt off immediately and it should be paid in 1.5 years. In 8 years she should have 200k saved up towards housing or emergency funds. 

Trying to buy unless you are going in with her to coop is a bad idea, 

I started out in palmdale in 2009. Duplexes were 60k, houses were 40-70k. Life was great. Cap rates were 20%. 

Since sold all except 1 in 2020 and got into a larger apartment in OC. My life is much easier. Higher quality people, less BS. Less stories from low income garbage. Cap rates lower but the depreciation makes tax return better. 

If your starting out, you can’t go wrong but don’t pay market price. Those areas are very cyclical and make sure you cap rate well since your gonna eventually have people break things, vandalism, turn over where you get to redo the entire interior every few years. 

A medium size town on the Iowa side of Omaha, Neb....Who flips and buys and holds out there? What are your experiences?

@Josh Thompson

I have to lightly disagree with the consensus here. In your case- walk away.

However, if your buying a property with severely under market rents or buying for 60% ARV, that cashflow number can change significantly.

On the other hand. Assume market rents and market value. Negative cashflow can make sense in markets such as LA if you have a high net worth individual you needs loses on taxes as write offs, those write offs can significantly change negative cashflow in certain individuals. Also, those type of markets can have fast appreciation so you may buy at a loss and resell at a profit with nice write offs.

In your case, this isn’t a thing most likely but just for the future when you get rich, it might make sense!

I second Laurie. Section 8 used to be a pain in the butt, program is better but most of the people on the program are dirty and have a host of issues. Their are several older folks on fixed incomeS with section 8 who are hard to find but gem of tenants. I’ve had several and it was worth it but none were hassle free unless they lived alone. Section 8 does pay over market typically. Keep in mind they do 1099 you at tax time. 

The Antelope valley is at the height of the market and is usually on a 15 year cycle. We are at or above the height of the mid 2000s. I personally wouldn’t buy a home there unless it was a short term flip right now since I wouldn’t want to get caught with holding for 10 years. 

I started out in AV bought a ton in 2009-2013 and since sold most and 1031 them into a nice building in OC. Much higher rents, better people and better appreciation/easier management. 

I still have one left and I still flip in AV and SCV. Currently working on one in SCV- purchase was 620k, will resell for 740-750 after a 25-30k remodel. 

I love rentals , build cashflow and wealth but the flips are better at this point for me. I like the in and out and quick capital gain. 

@Jeffrey Daguro

Congrats on your purchase. I have some time on you in the game but keep working hard. I started out in palmdale in 2008 buying my first rental living at home as a new deputy. REO special fire damaged duplex off 9th st and Ave Q. Fixed it up learned a ton as I didn't know ****. Refi and got a 3 unit in lancaster, saved up and bought a little house off pillsbury and division. Then refi the triplex, started flipping in 2012. I was cashflowing monthly half my salary just from the rentals. My flips became bread and butter. Picked up two more duplexes in palmdale by my first one and a house. Long story short, flipping is more fun for me and recently sold all my rentals in AV except one for approx 1M, was able to 1031 into a nice large building in Orange County which flows more $$. Still flipping just less hassle. AV is a wonderful market to flip or rent in. It's just getting too expensive up there for my taste since it's on a 15 year cycle and we are getting close to it again. I didn't feel like holding another 10 years in the event of a drop. But they cashflow like out of state rentals (if you can get a good deal on one)

Good luck!

I flip in SCV and AV

Hey guys,

Let me start out by saying that I have been a retail flipper since approx. 2012 in the Los Angeles Area. I have been extremely successful in that area purchasing some MLS, direct from owner, and mostly wholesale deals. As time has gone on, wholesale deals has started to get a bit harder as the market has heated up. Wholesalers are not getting the deals they were. I've always been intregued by the Homevestor franchises and how well many I personally know have done in the LA market. Its not for the faint at heart as many pour in 10k+ a month into the advertising pool..

I have dabbled google ads into my own site with some leads and returns but nothing near what the Homevestors guys pull in.

Fast forward- I came up on an opportunity to purchase a full Homevestors franchise in Texas for a really good price which can be relocated to my home market if it doesn't work out. Obviously its out of my area but the company has buyers on the ground in the area who can help with physical appts, securing the homes and buyers who will purchase the wholesale deals. My strategy would mainly be wholesaling most if not all deals in that market since I'm not local to it. 

I'm just wondering if any Homevestors franchises have had luck with owning an out of town absentee franchise? Would love to hear feedback on your experiences...

Thanks!