All Forum Posts by: Hank Oyler

Work on your Rolodex...

To Rehab, you need a Team...

Title Company, investor friendly Realtor, contractors, etc.

Hi, fellow investors.

I had a super failure at the start of my real estate venture over 10 years ago (I am still paying for it, lol).  Since then, my wife and I have worked slowly and patiently to purchase 7 homes since December of 2012, we flipped one, live in one, rent five, and have a our first duplex in our sights if we can put the numbers together by the end of this month (April 2016).

I work a day job that pays our bills and my wife manages the business (she has not held a "paying job" for about 2 1/2 years).

I've lurked here a little and decided it was time I joined the discussion and at least said thanks for the great atmosphere and encouragement displayed by you all.

We believe it is a missional calling to do what we do because we invest in people by buying and fixing houses (from the local contractors, friends who need part time income, and the renters who might not otherwise have a chance to live in a quality home).  We will not buy a property we would not live in ourselves, and follow a basic formula of a purchase price at ~50% of fully restored value and no more than another 20% of FRV for rehab (typically we spend around 12-15% - most recent example is a property we bought in February for $26k, put in $11k, appraised at $61k, and rents for $825).

I doubt we'll continue flipping anytime soon.  The first experience was profitable, but also eye-opening.  I prefer the long-term equity and "tax-free leverage" benefits of buying/holding/renting.  Perhaps when we can afford to buy $150-200k homes, we'll reconsider.

...yawn, enough about me.  Good to meet you all in advance, and blessings!

Kurt

This is very helpful, @Jeff B. makes a great point too. Throw some numbers up of a specific property on the forums and ask people if it's a good deal or not.

I actually thought about this after I read it this morning. At $200/door, you need 50 doors just to make $100K per month. Maybe I'm greedy but that seems like a very low profit margin for managing 50 doors and the tenants that go along with those doors.

Yes, you can hire someone to manage but then, on average, there goes 8-10% of your profit...  =/