All Forum Posts by: Ian Davis

So, if my investment strategy is to "buy and hold" rental properties for capital preservation, hedge against inflation, tax advantages, passive income (positive cash flow), and the fact that it's a tangible asset and NOT in the shorter-term market where the flips/rehabs trade, then I don't need to worry about the ARV value?

And given my strategy, what sort of margins should I be happy to get in terms of ROI/% of monthly income? Is anything above 5%, 10% or above 20% realistic? I don't want to have unrealistic expectations with regards to margins here but I also need to be judicious in my approach and analysis of the trade.

Any ideas?

I'm in the market for my first rental property. How do I make as-close-as-possible predictions about some of the values in the calculator? And what are the key ratios/metrics I need to pay attention to in order to determine whether or not the investment makes sense. Here I am thinking about monthly cash flow, ROI, ARV (*I didn't really know how to estimate this figure), etc. Thank you.

I'm getting ready to start looking for my "first rental property". I definitely want to run the numbers on any/all possible properties. But I need help preparing safe, reliable, and conservative assumptions regarding the calculator's inputs. And perhaps a brief tutorial on how to analyze, or understand the generated report. I need to know the numbers make sense before I go any further. Any help would be great. 

I need to run the numbers on some of the properties I am considering purchasing. But the old adage, "garbage in produces garbage out", rings true here. How do make safe and conservative assumptions when it comes to my numbers? I don't know how to estimate points, vacancy rates, and a handful of other inputs on the calculator. Just want to make sure I'm making decisions based on educated guesses, and not mere speculation. 

Thank you for the insight Jerry. So, you would say that the two key drivers, in order to protect any unforeseen downside are the following: (1) location (*which is worth its weight in gold), and (2) crunch the numbers (*need to make sure the mortgage, HOI, capex fund, and any other incidentals are covered). Do you have a "rule of thumb" in terms of estimating rental rates. I know "BP" suggests the 2% rule, but I hardly doubt that number works in my market. (Las Vegas)

Where can I find reliable data on the renter's market? I want to start understanding, at least demographically, my customer base. I need to get a feel for "who" they are and "what" they want in a rental home. So, here I'm interested in knowing % differences in renter occupied vs. own occupied, avg. wage of a renter vs. homeowner, educational differences, and whatever other variables I can observe. 

Wasn't sure if this was the right location. 

Hi "BP" Community. I'm in the market for my first rental property. I'm interested in Single Family properties (3+2 combo). My budget range is between $150K-$200K. What are the key drivers in being able to rent that property in short order? Amenities? (Pool, stone counter-tops, hardwood flooring, etc.) Or if I settle on location/price should that cover any potential downside? Just want to be sure that my investment decisions are being driven by the right set of metrics. Thank you all!!

Hi Mindy. So, when I move out in 2-3 years and start renting out the property what considerations should I account for up front, before even purchasing the house? In short, I'm in the short-term market as a homeowner, but in the intermediate-long term market as a real estate investor but want to ensure I'm purchasing a house that satisfies both investment strategies. Ultimately, whatever key metrics drive a real estate investor to consider purchasing a rental property are the ONLY metrics important in making my decision. Any ideas would be greatly appreciated? Also, do you know if I have to refinance the loan when I decide to start renting it out? Thank you Mrs. Jensen. 

I'm in the real estate market for a twofold purpose. I'm attempting to wear two different "hats" here, one as a new homeowner and the other as a long-term investor. I hope there's a middle ground between the two objectives. First, as a homeowner I plan on living in the home for a couple years. Afterwards I will move, whereupon the home will now be a nice hedge against inflation, with the aim of capital preservation. Herein lies my questions to the "Bigger Pockets" community. As a real estate investor, what are the key factors that drive the rental markets? Take into consideration this will be my first rental property, so whatever I need to do in order to minimize any potential downside risk I'm all "ears"!! The factors I'm thinking about range from "location", "amenities", "used vs. new", "lot size", "pool, etc.". All in, I want to make sure the house I purchase is also an ideal rental property. I would appreciate any/all ideas, suggestions, and/or criticisms. Thank you. 

Just attended my first BP webinar. Informative, but perhaps outside of my long-term investment strategy. I've finally matured, as one can with respect to financial matters, given that all humans have appetites, some for better and others, for worse! Pardon the philosophical digression, but I'm a realist. Here's a quick "peek" at my financials. I have no outstanding, high-interest, debt; I have "good" credit, so I can take advantage of either the FHA/VA home loan programs. If need be--and this is probably the case--I have a down-payment to satisfy the capital requirements of the mortgage which is usually, 20% up-front? I wouldn't mind purchasing a rental home so a few of my extended family can have a more comfortable living situation, but if I can hedge against inflation, take advantage of low-interest credit, and rely upon them to meet, or exceed, my monthly capital requirement--mortgage payment, capital expense account, etc.--then I think risk won't be eliminated entirely, but it will be up against an aggressive hedge like that of "being educated in the art of arbitrage". Info galore, the motto of the digital age, is at our literal fingertip, so why not capitalize on the endless and instantaneous exchange of information I want to be educated though before I "invest" in the wrong property given my investment criteria.

Oh yeah! The name's Ian, NOT Lan, but Ian. Remember, the Scottish name for "John". Practical Real Estate Knowledge Level: "Somewhere slightly ABOVE zilch!" 

Look forward to talking "shop" with everyone.......

" It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest"--Adam Smith