All Forum Posts by: Hunter Locke

1. Buy for cash flow
2. Underwrite conservatively
3. Good location

@Devon Kennard - Welcome to BP! Glad to have you with us.

What are you thinking of doing, sharing the residence and "co-living", sectioning off a bedroom for yourself, etc.?

Thanks for sharing, that was entertaining!

"Is a cash offer simply having the money in my bank account prior to the transaction and that you just have to close with a lender prior to the transaction?"

Correct - but make sure you disclose in your offer that you may elect to use some type of financing to obtain the cash but that it won't effect closing/timeline. 

My answer is based on a recent episode of BP where they talked about this, check those out.

Won't be an issue either way, but I wouldn't / didn't. 

I think AdWords is good, but I would think testing the waters before going all in would be prudent. This isn't my area of expertise but I applaud your willingness to hire your weakness, I've wasted plenty on ads I did myself!

This is something I'm interested in learning more on as well. I don't have a good answer for you @Andrew R. - but depending on your situation there are freelance market analysts that do this kind of stuff all day long. I bet you could pay a good one $200 to teach you their methods via screen share.

Caveat, making market research easy will involve the cost of subscribing to a big data service... I think.

I think this is why internal rate of return exists - I know we're talking about rules of thumb, but if I've got a property in an area expecting lots of rent growth, I can add value in other ways, etc. over the course of a few years, the present value of those future cash flows and any other liquidity events become very important and it could make sense to accept a much lower CoC in the near term.

Succinctly, I think there's an art and a science and that you should use conservative underwriting and follow the data. Good on you for pulling your offer when it dropped below what you deemed acceptable - I think you're head's in the right place.

@Brendan Chetuck - No, I don't think so. Less is more at this point.