All Forum Posts by: Greg Miller

Go to local real estate investor meet-ups.  Meet actually people who own single family rentals, own multifamily units, and conduct flip projects.  You will learn so much more than paying someone $10k for 1-on-1 phone calls.  If you ask people for assistance in-person, you will be surprised how many people are willing to sit down and chat and help you get started. 

Sounds like a wonderful first time experience!  Getting either a general contractor or subcontractors in place for your next flip will only help you.  You are well on your way!

First question to ask yourself: what is your end goal? If you are looking for cash flow, then the faster growth and higher ROI make perfect sense. How many rural properties would it take before you can hire a property management company? The other thing to consider up front is your exit strategy. Do you want to buy and hold for a long period of time? Or do you want to roll over your inventory every few years?

While your live-in rehab was hard, I bet that you smiled when you received that big check at closing.  Now you can take those funds and roll into the next property.  You are so far ahead of most people in America.  Congratulations on your hard work paying on in the end!!!  In addition, you were able to raise the increase the per square foot sales price for the neighborhood, which only helps every other home owners. 

Wholesalers, driving for dollars, and word-of-mouth. Wholesalers because they put deals under contract and are trying to move below market deals quickly. Driving for dollars because these properties might not be in the MLS and the only way to find them is to drive by them. I bought a totally fixed up 2 bedroom/1 bath property this way for $40k. Rents for $750 per month today. Finally, word-of-mouth because local investors cannot take on very deal and try to help out other investors. All three strategies cost nothing for you to implement.

I would go to as many local real estate investor meetings as possible.  Make it known was exactly you are looking for (single family, duplex, commercial, etc.).  Get your core four in place:  real estate agent, lender, contractor, and property manager.  Once you know what you want and get your core team in place, then I would move forward with these strategies and others that are suggested to you that have worked for others.

Use your prevailing income tax bracket to calculate your capital gains. Sounds like you used a CMA report from your real estate agent, which is a very noble idea. Doing all of the work with your own crew will both same money and time. If you are solid on your renovation budget, then I would move forward. Remember that females make the final decision for most property purposes...they focus kitchens, bathrooms, and closets. Make sure that you incorporate this game plan into your renovation budget. I would move forward!!!

Start with cities in the Midwest...St. Louis, Indianapolis, and Memphis.  Remember, that you need to have a strong 4:  real estate agent, lender, contractor, and property manager.  Once you decide on a market and get the key four people in place, then I would move forward. 

The BiggerPockets calculators are a great starting point.  Look for returns of at least $100 per door per month and at least 10% cash-on-cash return.  In addition, if you can get equity in a deal then you have a great starting point. 

I would see if the bank are willing to close on both deals at the same time...this could save you closing cost.  I would only use hard money as a last resort...the fees will cut into your profits.  Finding a bank that will work with you is the key. 

First thing I would do is get a real estate agent to run a CMA report for you. This will show all of the current and sold like properties in the immediate area. This is the best way to find the true ARV. Work the equation backwards. Get a contractor to provide a firm bid for the repair costs. Calculate the net profit you would like to receive. In the end, you will know the maximum you can pay for this single family house.

My one caution is single family houses with pools really limits the amount of buyers.  Their is a lot of maintenance with pools that most buyers do not want to deal with, so they do not look at these properties.