All Forum Posts by: Fellipe Novaes

Do you believe that lower the initial investment and price point lesser the concern to an exit strategy? I am all about cash flow right now, but I want to be wise regarding an exit strategy too. It could help me to reach other markets eventually. 

What about repairs, do you agree that a repair would cost about the same in a 50K house or 150K house (not using high cost products)? Does it concerns you that a $1,000 repair cost in a 50K property has a heavier weight on the numbers with almost none return? Also, I am not considering that a lower price point house has higher chances to have more repairs and expenses from its class type of tenants. 

How do you plan to pay the houses in 5 to 100 years? Are you not financing them? 

I believe we are in the right path to attain our financial freedom. 

Share some tips if you can. 

Thanks,
Fellipe


Originally posted by @Cheryl P.:

@Account Closed, @Account Closed is making my point. Because the initial investment cost (price/repair) for the house is so low in Indy, you will start with positive cash flow and once the property is paid for generally in 5 to 10 years or sooner for cash purchases, leaving you with all cash flow minus your normal buy/hold annual expenses. 

I personally plan to have cash flow properties that I don't care if I ever sell as long as they are bring in annual positive cash flow.  I'm going to be an old lady one day IN A REALLY REALLY REALLY REALLY LONG TIME FROM NOW :) and I want cash flow from 50-100 or more properties funding my world travels.  If expenses increase to the point that it makes more sense to sell even at or just above the original acquisition cost....again who cares I still win for the years of positive cash flow I got out of it.  When it ceases to be positive cash flow you gotta get out, no matter where you purchase.

I am good with taking the risk with a $50K to $70K all in-house in Indy versus the $350 - $500K house here in NOVA. 

I am checking properties there, and I will keep in touch. 

How did you pay for your houses? Did you pay out of pocket or you allocate the cash flow towards the principal? 4 years is very fast. 

What is your strategy for maintenance? Would you consider it an investment or an expense? 

Which kind of neighborhoods you like to own houses in Indy? 

I am about to go there really soon, as I mentioned above, I will let you know. 

Thanks,
Fellipe

Originally posted by @Account Closed:

I have paid my houses off in 4-5 years. I pay cash. Now averaging $600 positive cash flow per month per year.

What is your perspective regarding returns being the same as 2005? You refer to the overvalued prices prior to the crises, right? These prices were dramatically dropped and they are back up again, but it has been a 10 years process, so would you say these prices are now where they should be, with a more realistic valuation?

How has it been in Hawaii for comparison? I know rent there is quite strong, with extremely high demand and high prices, but in the other hand the property prices are very high as well. How do you cash flow there, through vacation rental?

Let me know if you have any tips. Eventually I will invest in Oahu, which is my favorite place in the world. I am going to Maui in September for a week.

Thanks,
Fellipe

 
Originally posted by @Account Closed:

Originally posted by @Account Closed:

You should really consider Indianapolis. Great returns and solid market. See www.indianapolisinvestment.com

 What returns?  2013 rents are the exact same as 2005. http://www.deptofnumbers.com/rent/indiana/indianap...

@Neil Patrick . I got my start in Real Estate investing in October 2014. Investing out of state is not as difficult as you may think. I would recommend using a complete turnkey company that is stationed in the actually city. It keeps things simple. As for your finances I would use the $50k cash for down payments and buy 4-5 properties around $40-55k. Your total cash flow could be over $1000/month bet easily...if you play your cards right and choose the right market.

You can buy two duplexes at 90k that gross 1300 per month in rents in cities like Kansas City or St Louis. You could start small by buying a rehabbed house in Kansas city for 50k cash that rents for 850 per month. I have many more examples of properties like this in Missouri, it just depends on what way you want to start.

Rents are 1100 per unit in the duplex so 2200 total. Both tenants are section 8. My projections show cash flow of 600 monthly. I will track actual cash flows monthly starting next month and can provide more detail then. 

Fellipe Novaes welcome to BP
Sounds like a man with vision on a mission, I wud apply some keywords like turnkey and any areas ur interested in investing in so u automatically get notifications with these keywords in it, have a good hint around the forum and u will find what ur looking for.
All the best on ur venture!

P.S I have a similar situation in my area so education will help me to invest in other areas so good on u for not letting ur geographical situation limit ur goals to invest!

@Fellipe Novaes

Welcome to BP!! Good luck on your quest for a great ground team/PM, and a property or properties cash flowing to net you $1,000 a month preferably close to your home. If you are unable to find any achieving these numbers in CALI then look around BP Marketplace.

Thanks

Derrick

@Fellipe Novaes

Great to hear you're taking some good steps to reach your goals. I'm sure you will find plenty of out of state investors in CA due to the high price points and low rent to value ratios.

I too invest buy and hold out of state because of simlilar matters. Aside from building up a strong network close to you that shares similar interests, take a trip to an out state company you may be interested and go see it first hand. Alot of times what might work for one person may not work for you. So, plan ahead and go see your area of choice before you decide to make your decision. A firsthand look may open up new doors to your long term plans as well.

Best wishes!