All Forum Posts by: Greg Moritz

+1, would also love to connect with some great wholesalers.  So far (and admittedly I'm pretty new) I've yet to see a wholesale deal where there is enough meat on the bone for an investor.  

Are the units currently rented out priced correctly at $600?  Have they been remodeled?  How much work is left to do on the remaining two units?  

If they all went for $600 you'd be getting $3000 in gross revenue a month for a $270k property.  Not that exciting.  

I'm still pretty new at this, but overpaying (if you really are, we don't have enough info to tell) seems like a bad idea.  AFAICT this is a game of discipline where making the right moves can make you a lot of money but rushing in and not sticking to your criteria is likely to leave you bankrupt.  

On paper this looks pretty good... a few thoughts though:

Vacancy rate of 3% is pretty low.  Is that standard for the market there?  

How much work does the bottom unit need?  I didn't see that captured.  

I see the deal is in Rochester and you are listed as being in Corona?  Do you know a lot about the Rochester market?  Will this area appreciate/depreciate/stay steady?  

Related to the above, have you physically seen the property?  I don't mind throwing out blind offers, but couldn't bring myself to close on a property I (or someone I deeply deeply trust) hadn't looked at. 

How old are the major capex items?  

Hi Vincent!

Congrats on your success!  If you don't mind sharing, what is it that made you select those 1300 or so properties from the 10k you drove by?  I'm in a different part of the RE journey, but very curious about the methods that wholesalers use.  

I was thinking about that this morning.  Obviously I'm very new to this so take my thoughts with a grain of salt, but I agree with your thinking that this might cause those looking N/NE to reconsider or at least put off moving.  If that's the case I wonder if it might depress prices (or at least slow appreciation) up there, leading to some opportunities.  

In the long run I hope this spurs more of the city to be motivated to have good mass transit.  

Also I think there's a big lesson learned for me here that I'm going to have to learn to be better at identifying serious issues with the condition of a house.  This is an area of my toolkit that is currently lacking.  

Quick update on this one..

Sadly the deal didn't work out.  After the inspection there were some serious concerns about termites and a few other things on the property.  I talked to a member here with experience however and felt like it could still be a go... but just in case I had a family member that owns a construction company come take a look at it.  He found some major foundation and structural issues with the house that the inspector missed.  It would have required a great deal of money to fix and in order to bring to code I likely would have had to remove the tenants for a time.  That sounded like a nightmare so I canceled the deal and got the EM back.  

So, on to the next one (a quad in dekalb that I have the inspection for tomorrow)!  

I think you are going to be hard pressed to find A/B class properties that cash flow well. I'm sure they exist, but they are far from abundant and if those hit the MLS at all they won't last long. Perhaps looking outside the metro area might get better yields?

I'm finding what seem like some reasonable deals, but they are C class areas at best.  

@Damir Kamber Thanks for the analysis!  You make a couple of great points.  I think in this case the risk of bad tenants is somewhat minimized due to their tenure.  One for 40 years and one for 5.  But, even they could be a pain, it's true.  I'm thinking hard about getting PM for this one.  

Your second concern is also very true.  The comps in the area are all around the same price.  You're definitely right that if a market correction hits the value may go way down and it hard to move.  My backup plan in that case (assuming it keeps cash flowing) is just to hold and wait out the storm.  Of course, I'm also keeping a fair amount of cash in reserve so if there is a big downturn I can jump on things.  

@Grant Smith In this case it was just a MLS deal. Ran some numbers, agent took me to see it, and I threw out a cash offer that night.