All Forum Posts by: Ken Holifield

Not a great area to invest.  There are some rough areas in north county.  It’s seemingly attractive to new investors because of the potential cash flow, but the cash flow may not be worth the headaches.  Just my humble opinion.  Good luck!

Welcome Donald!  Just saw your post, were you able to pull the trigger on your first purchase yet?  I'm a broker and property manager in the Jacksonville area.  Let me know if I can help.  Good luck!

Welcome Leo!  I'm a broker and property manager in the Jacksonville area.  Let me know how things are going for you thus far and if I can help you in any way.  Good luck!!

Where in FL are the properties located?

Hello Peter!  I’m your guy in St Augustine and Jacksonville, FL for investment real estate and property management.  Let me know how I can help.  Good luck!

I should have prefaced this by saying, also consider all due diligence done properly and there are no red flags. With that said, are there any risks I’m not thinking of?  The deal example above is just one of several I’ve had recently. My thought process is to take them all (if numbers work and due diligence checks out). Am I wrong?

The up front question is, why would I not want seller financing if I can get it? I'm currently looking to grow my portfolio of single fam and small multi fam rentals and have been offered something similar to this several times. If I can get a property below market value (instant equity) and it cash flows every month with seller financing, what are the down sides / risks with taking as many of these as I can find? Kinda like buying every property in monopoly that you land on! Quick example: Property ARV - $185k Repairs (upgrades to get rent ready) - $5k Sale price - $150k Only 5% down at 5% with a balloon due in 5 years Cash flows $500 per month after all expenses Why would I not do this deal as many times as possible? What are the risks?

WoW, what a response! That was above and beyond, thanks a lot mwarden for that explanation!

To a newbie like myself, this number ($2,300) seems very high. I realize that different markets warrant different amounts and so on and so forth but it doesn't seem possible to get this much in TN. I was thinking that the above-mentioned fictitious property would rent for a max of about $1,500 (and I guess this is why I’m on the sideline and not making deals).

This was a real eye opener for me!

What is the general consensus on what is easier to start out in, flipping or rentals?

Thanks again!

At the risk of sounding like a complete rock, here is my question...

What is the formula for figuring out if rental property is worth it? I realize this will vary for different areas, mine is TN if that helps. I've seen many different answers on here that never really explained it all the way out for a newbie. Let's just say I buy a $100,000 sfh and my mortgage payment (piti) is $1,000 a month. Considering everything, what do I need to get in rent per month to make this a positive cash flow property and also what would I need to get to make this a VERY GOOD positive cash flow property? And, how did you arrive at those figures?

My situation (condensed version):

I have already secured financing and have been looking for houses to fix and flip. I've been looking for about a month with no real luck. This is partially due to the fact that I am being overly cautious because this would be my first deal. Just in the past few days I started thinking that maybe I should be looking for rental property and if I happened to find one to fix and flip then ok. I thought it might be a little easier to find a property to rent and this would get me in the "game" and give me some experience. Is this a naive view? Any and all thoughts, ideas, wisdom or criticism is appreciated?

Thanks

That brings up another question. Do most agents have a problem submitting low offers? So far, that's what it seems like. An agent told my partner a couple of days ago that our offer was to low and that she would not submit it. Is this even legal?