All Forum Posts by: Jay Orlauski

Welcome to the club Jessica - you certainly sound like the have the fire for this. Washington is beautiful - I used to live in Tacoma and I have some family there in Kent, very close to you.  I have considered buying some investments in that area .. would be nice to know someone who has their finger on the pulse of rentals. Just keep coming to the site and reading about other's experiences and just soak up all the good info there is here and you will soon learn what it takes to grow in this industry - Best of luck to you - We look forward to hearing about your success stories. 

I think it's great that you like to DIY - I think it is part what got you where you are today by having that mindset. As you have read, it can indeed pay to have someone else performing chores while you could be doing something else that is far more valuable - but I also think it comes down to personal choice and also depends a lot on where you are in real estate business. For example, if you are just starting out and aren't really making much an hour AND you enjoy doing the work - then I think it makes a lot of sense to tackle some things on your own.   The personal joy you get out of making things shiny and new again is a difficult to quantify in terms of money - many times when I'm in the yard doing my own yard work for my tri-plex - I often think that I could be paying someone to do it while I do something else - but the truth is - I really enjoy working in the yard - so much so that sometimes I almost feel guilty for spending time there and not doing something else.  But then I think about the joy I get out of it and realize , that I do what I do so that I CAN enjoy small moments like that. Now if your real estate empire is growing, and your time becomes more valuable and scarce - the benefits of outsourcing will start making sense to you and you will pick and choose the things you prefer to keep your hands on. One thing I always keep in mind is knowing where to draw the line and understanding my own limitations - there are many chores that I do with out a second thought -however, every now and then a task come up that I know I need to bring in a professional - I don't do roof repairs or anything that has to do with the outside electrical - even though I have no problem replacing lights, sockets, ceiling fans , etc. Sometimes I look at a project and know that I need some outside help - it helps a lot when you have the equipment and know what your doing - but there is a lot to be said about learning new skills too. I think in the end , it is something that you will have to decide for yourself and determine - when you find yourself face to face with a  gaping toilet hole drain - you really start to rethink your DIY strategies - but afterwards - its hard to not take personal satisfaction in the fact that you just saved $200 by handling the problem on your own.  

Hi Jeff,

I'm not sure you've already seen this or not, but I have found it useful from time to time for quick and dirty estimates - Its a heat map of rental prices and home prices ( I wouldn't depend on the home value info as it is not as up to date as the MLS) and other statistical data about an area - hope this is helpful

http://www.trulia.com/real_estate/Ardmore-Pennsylvania/

@Gary -

start with people you know , like, and trust - has any family member or friends had a good experience with a particular lender? If not, How about a reputable Real Estate Broker? they usually work very closely with lenders and should know a few reputable ones in your area. You can also try your bank or credit union - let them know you are in the market to buy a property and talk to them about your options - they will pull your credit report and go over it with you , then use the data in the report as well as your tax info and paycheck stubs to confirm your debt to income ratio - this, along with your credit score will help determine your eligibility, max loan amount, and interest rate - these are things any lender can/will do so it is important that you find someone to work with that that you like. If you get a bad feeling about someone or just don't feel a connection, feel free to shop some other options and talk to other lenders till you find someone who is knowledgeable, friendly, and clicks with you. You may want to ask about their experience in lending on investment properties just to make sure they are a good fit for what your personal objectives are. Keep us posted on your progress!

Hi Gary,

If you plan to finance the property than you definitely want to get your pre approval process started as soon as possible. Buy getting pre approved, you will know exactly how much you can afford to purchase and it will also help you to focus your efforts on finding properties within your price range - you would hate to drum up a bunch of numbers only to find out that you do not even qualify for the loan to begin with - so getting that lined up first is KEY. Also by talking to your lender and running some numbers in advance , you will have a better idea about what your expenses will be since they can tell you what your expected monthy payment will be - you can use this as a base when adding in the cost of maintenance like pest control, water / garbage, property management , and other possible expenses. This should help you to make sure that the properties you are looking at are cash flow positive.

I hope this helps some - good luck on your endeavors!

@Mark - your absolutely right , I forgot about that 50% program as it is so rare and under utilized- I got it mixed up with the $100 down program - thanks for the info -good to know.

the $100 program is not just in certain states, but in certain localities and communities. The idea behind the program is to put qualifed buyers into homes in low income areas that need revitalization- so they are trying to build up the neighborhood. In many cases the program is only available to teachers, police officers or firefighters so you will need to do some homework to find if you qualify for the program and if it is offered in your area. There are usually not a lot of these available at any give time, but they do exist. I would talk to realtor who works with HUD homes in your area to find out more about it. You can find a HUD certified Realtor at HudHomeStore.com which is the government's official web site for HUD homes.

my math may be off on this - or perhaps I am missing something , but at $453 / month cash flow - that's $5436 a year assuming you manage the units yourself. If taxes are $11,000 a year - it seems like you would be paying $5500+ a year to hang on to the place. Are you looking for long term capital appreciation? Otherwise , it seems like you would be upside down on this for awhile - also - do your calculations account for a down payment of at least 20% ? It could make a difference in the numbers your quoting. Hope this helps you flesh it out a little

I'm not sure about Oklahoma, but in California, once something is permanently attached to the house, it becomes "Real Property" and is considered to be a part of them home, no matter who installed it. Building a storm shelter into the unit would definitely qualify as something has become real property - but again, that is in California, but Oklahoma may have similar laws - you should check on that to see what it says in your state. I like what Darren said - be in control of who the contractor is and let the tenants know they can build it, but it stays with the home when they leave -

Hello Sean,

Welcome to Bigger Pockets! You've stumbled onto a website with literally hundreds of years of investing experience all rolled up into one informative website. I'm sure you will find many people here to lean on and learn from. I am also an investor here in Fresno. I moved here 13 years ago and have had an opportunity to get to know the Fresno real estate market. I am also a Realtor, specializing in investment properties so I can also assist you in finding some really great deals. Just let me know what your looking for and I will happy to send you a list of homes in the area.