All Forum Posts by: Jessy Milner

Hello,

My name is Jessy Milner, I'm a 3rd gen RE investor, currently own 15+ properties in the Austin & Charlotte area, looking to add 4-5 SFRs a yr.

I am looking to have lunch with another RE investor in the Austin area with more than 15+ properties, preferably SFRs, in order to associate with like-minded people and hopefully learn.

Hello,

Does anyone know recommend a property manager or RE agent in the San Antonio area, preferably the North East area of the city?

I am live in Austin and looking to pick up a few properties in the SA area but would like some help, anyone have a referral?

Thanks,

Jessy Milner

David, 

That looks great and thanks. The thing I am looking for is something that can give me an idea how much a contractor grade sq ft of tile would be, etc. Any suggestions?

Thanks again,

Jessy

Ken,

Fellow vet here, if you come across anything pls give me a call

703-927-2584

v/r,

Jessy MIlner

Hello All!

Does anyone know of any existing apps that can at least give a rough estimate of carpet, tile, wood flooring, roof, paint, sheet rock per sq ft?

It doesn't need to be exact and I realize the quality and quantity will influence the price but is there anything out there?

Thanks,

Jessy Milner

Austin, TX

Hello, I would like to create a local association strictly for current Rental Property Owners and Landlords. The association will be designed as a networking opportunity for experienced Real Estate investors to share their knowledge, ideas and best practices.

The first few meetings will be dedicated to working together to develop a format and create a plan for future meetings.

The only requirements for the meetings will be

1)All attendees must own at least 1 investment property

2)ABSOLUTELY NO SELLING will occur at any time during the meetings. The purpose of the meeting is to learn from fellow investors; product promotions or any solicitation is strictly prohibited during the meeting.

Currently max participants allowable for these meetings will be capped at 15 participants. The meetings will be held at:

Sherwood Regional Library

2501 Sherwood Hall Ln, Alexandria, VA 22306

If you are interested in attending please contact me at [email protected] or 703-927-2584. I will make a decision on the best day and time for the first meeting in January 2014 based on the feedback provided by individuals interested in attending.

Peter,

About the 1st part:

Unfortunately I was in this exact position a few years ago after buying a condo on the wrong side of the market and we got crushed. I realize that for certain investors condos are a niche they like to play, personally I see too many uncontrollable variables and constraints with little upside, control or in many cases appreciation opportunities.

With little control over a HOA that inevitably raises fees and charges periodic assessments that are likely expenditures you would not prefer or receive any financial benefits are inevitable in most cases but surely cut into your profit margins, plus these associations can make renting more of a tedious task than necessary.

Also, the upside for any rehabs or overall appreciation will be directly tied in to the entire complex. Of course with SFHs you are tied to a neighborhood but it is much easier to realize a profit based on your own sweat equity and smart business than having to rely on the positive actions of an entire complex. Also, less comparative to SFHs in a neighborhood, no matter how much better your unit is you pretty much have a cap for max rent comparative to other units in complex.

Maybe it was because I got burned but for me I would do my best to break even and get out if I was him because HOA fees and taxes will likely continue to rise, but that is strictly my opiion.

Second part

"Setup a sale of the property quickly, take the profits of the sale and do a 1031 on a downpayment of SFH's or a MFH. Silly question - do you avoid any PMI or additional charges by putting 20% down on investment properties? What are the benefits of 20% down on investment properties? "

I am not a legal expert but I do know from experience you will have to wait 1 yr to qualify for a 1031. 20% is typically the minimum for conventional financing but 25% for investment actually gets you a better rate, either way you should avoid PMI

Personally, I know your market, you could buy a few SFHs in that area with much less pain and uncertainty at great deals, get cash flow and not have to worry about all these other extenuating circumstances and the transaction cost involved.

Hope that makes sense

Sorry Chaz Churchwell

I use Chaz Churchwell, he has been great so far on my properties. If you try him please mentioned I referred his name.

Thanks,

Jessy Milner

Keela,

I admire your creative thinking, and there is always alternatives. You mention smaller cities, maybe you are thinking about Kannapolis, Concord, Gastonia, or Harrisburg, something like that.

There are methods where you can essentially "subject-to", do a "wrap around", "assume" a mortgage, "lease purchase", "option" or in essence somehow double rent a property. Personally, in my experience, especially in that area, there may be more effective ways to spend your time.

Think about it, let's say we use your example

"a small amount down then $500 a month then I find a tenant to move in charging $650. Is that an alternative? And are there other alternatives?"

In that area a $650 tenant will typically be spotty, from my houses and ever property mgr I have spoken with over there the sweet spot starts at least at $1000 moth, more likely $1200.

Who is going to handle evictions? Repairs? Late payments? Taxes & Insurance? Who is getting the equity accumulating? Who has the ultimate right to sell the property? Many times these alternatives are advertised as simple and on paper they look great (and they could work under certain circumstances) but you can't gloss over these details or they'll crush you.

I am a pretty vanilla investor, I have tried a few of the above options, and frankly had luck before but the key word is "LUCK". The deals could have gone either way and unless you are able to scale this type of business you may want to look into a more fundamentally sound alternative.

Possible options

1) You can never beat finding a real deal, if you find an actual wholesale deal you will have no problem finding a willing investor, especially in that area. You could pick up a few grand in finders fee which would be a significantly higher and less risk return than the example above

2) Find something like the deal above you proposed and sell that package as a cash flow opportunity to an investor. Offer it as a "turn key" type investment with a properties for sale with an existing high quality tenant and an immediate cash flow opportunity. This would be an attractive option that I am confident you could secure a deal and a finders fee with probably less long term hassle.

Hope this helps

Jessy Milner