All Forum Posts by: Ferrode Joseph

@Ferrode Joseph, are the Cleveland/Columbus, Ohio posts old? Those guys post every day, hyping that market up, haha. As I tell all individuals wanting to invest out of state, regardless of the market, your success rate will largely depend on the resourcefulness and reliability of your team (agent, lender, property manager, contractor). Hypothetically, you could acquire a killer deal that cash flows $200+ monthly. However, if your PM doesn't know what the hell they are doing and sucks at their job, you now have a liability on your hand. Vet all vendors before proceeding. If you haven't already, read "Long-Distance Real Estate Investing" by David Greene. Best of luck! 

@Ferrode Joseph

Understood.  I'm saying that even in the markets with lower median prices - like in the Midwest - you will not cash flow unless you do something creative.

@Ferrode Joseph 

Cash flow (CF) might be challenging these days, but it's definitely not impossible.

So, how do you analyze your properties?

We've been using a proprietary tool (an Excel) that we created about 15 years ago. With this tool, we've analyzed and bought around 1000 long-term rentals, and over the years, we've analyzed approximately 75,000 properties with it. It's been a reliable tool for us, but like any tool, it's crucial to know how to use it properly and not rely on it blindly.

I've noticed that many investors tend to use rules of thumb when analyzing properties instead of diving into the specifics of each property. They often make worst-case assumptions, which can lead to always seeing the worst-case scenario and missing out on good opportunities. I've been there and done that myself. Having a good tool and using it correctly can make a huge difference.

Another important question to ask is: What's your cash flow expectation? Are you looking for $100 per year? $3000 per year?

We still find cash flow properties. Most of the ones we come across generate around $2000 per year in cash flow when we analyze them realistically. This takes into account factors like mortgage payments, vacancies, HOA, and so on.

@Ferrode Joseph

you probably won't cash flow in the first few years of ownership wherever you go.  the idea of buying a property and immediately netting a few hundred dollars just doesn't happen unless you employ a creative strategy or combination of creative strategies.  see this thread.

https://www.biggerpockets.com/forums/12/topics/1171104-the-m...

where are you located?