All Forum Posts by: Erin Azar

I agree. The cost of new construction bumped up against current rent rates continuously mutes the cash flow potential. I have ran these numbers ad nauseam and cannot get them to work with cash flow...unfortunately.

We are doing the same here. Doubling down on upgrading our rentals as they become available, while still keeping a scrutinizing eye out for underpriced properties that enter the market. We will focus on a vacation property also this year. May even consider securing the land and build later, when we have more time to plan out a cost effective build. 

I think you jump in feet first and get all 3 done in a set time limit. Say 4 weeks as a reasonable goal. Start with finding an agent and pre-approval. Those only take a few days (at the longest) so you could get that done by Mon/Tues next week, if you get on it today. I suggest lining up a good general contractor to help you size up any work you will want to do on your future property. Then focus on 2-3 areas that you have done your research on and identified as target areas, get the list from your agent, and line up viewings immediately. Have fun....this will be an adventure, but an awesome one.  

Nothing truly is holding me back, but I do feel I could move faster if I was not pulled in so many other directions due to my company, family, etc. I have also been reluctant to take on too much debt. I saw friends ruined by debt during 2008, so I have played it too safe financially for many years.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $45,000
Cash invested: $15,000

Great SFH on a nice street with solid renters. Same renters since day 1.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Indianapolis.

Purchase price: $85,000
Cash invested: $20,000

2 sfh on a single lot and single transaction. 1 3bdr 2ba ranch and a 2 bdr 1b sfh

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Indianapolis.

Purchase price: $85,000
Cash invested: $20,000

2 sfh on a single lot and single transaction. 1 3bdrm/2b ranch and a 2 bdrm/1b sfh

What made you interested in investing in this type of deal?

I liked 2 houses in a peaceful neighborhood. House was ran down and I knew we could make it very nice, and appeal to higher end renters.

How did you find this deal and how did you negotiate it?

Offered 5k under list with as-is clause.

How did you finance this deal?

Traditional

How did you add value to the deal?

Hard work and some good taste + converter from 2 to 3 bdrm.

What was the outcome?

Renting small house at $780 and large one at $1000

Lessons learned? Challenges?

Would have inspected sewar line