All Forum Posts by: Greg Carrier

@Marcus Auerbach. I think your rehab costs might be out of line with $50,000 houses. We’ve never had to spend $10,000 on a roof. Including the house I live in which is 3500 ft.². We have also never had to spend $50,000 on a whole house Rehab. So I am guessing that we are buying smaller houses and that you don’t have full-time Crews working for you. We are buying some houses in the five to $10,000 range. And putting 25 to 35 into them. Sometimes we go higher in many times we don’t have to go that high. Our rents run From 725 a month to $900 a month.

@Marcus Auerbach That’s just not true. I have 40 houses and I am under 50k on all but two of them

@Wilson Lee we will see if we have something else for them to move into. Or give them notice and tell them they’re going to need to find a different place to live. We just were six people and a large dog out of a Small two bedroom in the last month or so. I know that large families go to small houses 50+ years ago but I don’t want to wear and tear on something that small being used by so many people.

You will not run into any problems which are insurmountable.  We do a lot of odds and ends things but really sticking to a few things will make your life easier.  The book the pumpkin plan may help you with that.  As for us we really are buy and hold people but flip to generate cash and buy more buy and holds.  We also end up with odd ball deals because we look at a lot of houses but those are just ancillary to buy and hold and buy and hold and buy and hold.  

Good Luck

We self managed until we got up to 25 units, then it became a bit too much too handle.  I recommend self managing at first just to get an idea of what it all entails.  It can be a bit of an emotional trip at first but I'm glad we did it.  That said I will never go back to managing my own now that we have more and a decent manager.

@Ike ADIGWE.  I wish I could tell you that but we have nothing near $3500 rent properties.  Here is what I have gleaned from others though.  A furnace for a 1000 square foot house is not half the cost of a furnace for a 2000 square foot house.  Same goes for roofs, AC units, driveways, etc.  The houses we own tend to be small so if I had larger homes I would probably drop the percent a little bit while considering if the larger (and probably nicer house) has any unique features that would bump the amount up like swimming pools, nonstandard (nonshingled) roof, pavers for walks and driveways etc.

Good Luck!

Get into contact with the Fort Wayne REIA (I think there are two) you will certainly find people there that can find you a house hack

Troy Albers Rental Property Investor from Fleming Island, FL

replied 1 day ago

@Todd Wilson

Get your real estate license and do it legally.

It's legal where I live and in damn near most of the country, I would have a hard time sourcing properties if not for wholesalers finding them for me.

Christa McClain

replied 2 days ago

It matters to me because they offered that to me as terms for buying MY property and I find it ridiculous. So yes, I’m still laughing. How desperate.

Not Desperate. You know a lot of off listing real estate is a negotiating game right? I have bought a lot of houses with no EMD. And everyone of them closed.

I wing it at 10%.  No one knows of all the furnaces I own which one will die in ten years and which one will die in 30 years.  In the house I live in the original furnaces (2) are still functioning and the house was built in 1995.  We have had one repair on them in 14 years.   The house I moved from had a furnace in it from 1968 and it ran without a hitch for the 10 years we lived in the house.  Roof life varies a lot depending on insulation in each house you have and how bad weather is where the house is located.  AC units have been the hardest for us to guess as some tenants never change furnace filters and some are really good at doing it.  With all the other things you have to keep track of, I suggest just sticking to the 10%.

@Alexander Reda I wouldn’t close. I don’t think you’re going to get any cash flow out of that house and you can’t build a rental portfolio out of house as you pay retail for. There are way better deals out there so Lose the Ernest money or maybe you’ll be able to save it but go hunting for a better deal