All Forum Posts by: Shawn Holsapple

Welcome @Sundeep Amin !

Welcome to BP @Pedro Oliva !

There is a ton of great info here. It sounds like you have a goal in place - that's good. One of my regrets was waiting waaaay too long before pulling the trigger on my first deal. Once it was done, I was amazed how simple it really was and couldn't believe I waited so long to do something.

If you haven’t already, please read/listen to these books ASAP!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

The E-Myth

The 4 Hour Work Week

http://flip2freedomacademy.com/ - free e-book

Flip2freedom episode 77 - podcast - LISTEN TO THIS TODAY!

BiggerPocketsPodCast

Wholesaling101 You Tube Channel

Kent Clothier - Memphis Invest channel

@Daniel Guillermo , those are all good answers to your great question. I think the team on the ground is equal to or just above the importance of the market. Bad team = Bad deals.

Like @Mike D'Arrigo said about Indy, the neighborhoods vary greatly street by street and one can't sort by zip code alone. A good team on the ground will make the your investment work [or not work].

Welcome @Marcus Peterson ! You are at the right place to learn a ton of good stuff and get support from a large community.

Since you & your wife are just getting started, If you haven’t already, please read/listen to these books ASAP!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

The E-Myth

The 4 Hour Work Week

http://flip2freedomacademy.com/ - free e-book

Flip2freedom episode 77 - podcast - LISTEN TO THIS TODAY!

BiggerPocketsPodCast

Wholesaling101 You Tube Channel

Kent Clothier - Memphis Invest channel

@Rodney Kuhl - the assessed value is about as accurate as Zillow's "Zestimate" - worthless!

Also, as @Kevin Pfeiffer mentioned, be careful placing tenants. I learned a good trick from Mike Butler. Go to their current residence and try to have a look inside. Show up unannounced and say you are just confirming their current address [my application has this in the fine print]. Then ask yourself 2 simple questions: 1) if they offered to make you a bologna sandwich, would you eat it? 2) when they move out, will you be glad to follow be hind them and clean up the unit?

That's it. If they pass both questions [and all of the other financial requirements] then you have a good chance of success.

I think I would do it if I could get all my seed money back via a refi.

I typically buy with cash & then refi with a local bank based on 75% LTV of the appraised value & not purchase price. This always gets me my money back and sometimes a little extra due to equity.

Otherwise, I might try to get the price down or wait for a better one. Unless, the seller is offering financing?

$150 net per month is moderate.

I personally shoot for at least $200 net per month after all expenses and debt service.

@Rodney Kuhl a good property manager [like any quality professional] can pay for themselves in the long run. I had a PM when I only had one property & would highly recommend you go that route.

Once I put a number on my personal time, it's easier for me to pay for services now. For example, if your personal per hour worth is $50 [it should be higher] and you pay $75 per month to a PM then, after the first hour and half of dealing with your property per month, you are break even.

For me, I look at it as not "what is costs me" but "what it saved me". If my time is worth $50 per hour and I can hire out the yard mowing for $25 - then, I just saved $25, not spent $25.

Also, don't forget the taxes are 2% of the Assessed value not the purchase price as you have in your figures above.

Good luck.

Welcome @John Pruner !

As mentioned above, 10% ROI is very easy to attain in several markets. I would suggest a newer build [1998-up] like a subdivision "vinyl village" home to purchase.These will cost a little more than an older home with the same rent but are much newer, typically on a slab [no moisture issues to deal with] and are easy to rent and/or sell in the future.

One downside of this type of home is that most good markets [Indianapolis included] have been invaded by the Wall Street Hedge Funds and they have or are buying up this product at record rates. That's not to say a good team on the ground can't still find good deals in those markets.

That all depends on what your short & long term goals are. I would suggest talking to a few good corporate attorneys and CPA's to help you determine the best setup for you.

In the mean time, I would suggest reading/listening to those books as soon as you can [i.e. - TODAY!]