All Forum Posts by: Joe Lambert

I recently bought an off-market property and leased it back to the seller. It was the perfect SFH buy and hold deal I've done. Now if I could find about 10 more of these. :)

Anyone have any experience in Omaha regarding buying/selling performing and nonperforming notes?  

Totally agree with your article.  I may have missed it, but I don't think it covered appreciation.  That's the icing on the cake for a long term buy and hold investment rental. It is more likely homes will appreciate in these stronger neighborhoods that appeal stronger applicants.  

I've had real good luck with the rule for SFH that if the property cannot generate 1% of purchase price in rent, then you're probably better off putting money elsewhere. In Omaha, after taxes, insurance, $100 a month in expenses, and self managing, it has provided me with an 8% cap rate on purchase price. It's a slow and steady grind, but been one of my best investments. Granted I've been in the game the last 4 years which I think have been exceptional years in housing.

 The question was asked in past tense.  After the deal is done and you post it, we all are actually egoistic.  

I use the 1% rule, but buy SFH in west Omaha. Vacancies have been less than 2 weeks for the past 3 years and expenses are minimal. SFH in west Omaha are also highly liquid-able in under 30 days at near market value.

(1) Westin Hills

(2) SFH

(3) $1450

(4) $137,000

(5) 1.05%

@Christopher Erwin Very nice, he introduced me and has guided me on the SFH rental market in Omaha. I have bought 6 houses with him and working on an offer for a 7th tonight. Very crafty, knows his numbers and knows how to negotiate.

Well 5109 and 5119 on your same street rented, respectively, for $700 in 2016 and $825 in 2015. Judging by the photos on Zillow, your place isn't as nice as the other two. I'd suspect your place would rent very quickly at $700 (2-5 days), $750-800 (30 days to rent) and $800-850 (60 days or more to rent). Just my thoughts. 

If you need to cut your property management expenses, use Mike Salkin. He has a non-traditional way to expense, versus just a flat percentage of your rent. See link at the bottom.  

I think you are a little aggressive in that part of Omaha on your potential market rent at $900 a month, especially without a garage.

http://www.mikesalkin.com/property-management-in-o...

I'd try to sell it, take your money and buy in western Omaha.  Fewer issues, stronger applicants, and an appreciating asset.

Been buying SFH in Omaha since 2013 in the 125-190k range and renting them for $1250-1900 a month. I'm a bigger fan of SFH versus multi-family. SFH are much easier to liquidate, move in line with inflation, and rent better in Omaha. If you have driven around Omaha lately, there are apartments going up everywhere which will compete with multi-family tenants. Just my thoughts.

Also when starting out, just get an umbrella insurance policy to cover liability. No need for LLC.