All Forum Posts by: Dani Beit-Or

What a great question!

Here's the Qs I ask all those I consult when asked this question:

1. Are you available to show the house?
2. Are you good with quickly responding to inquiries and questions?
3. Can you REALLY be cool about your house’s price and condition?
4. Do you know how to screen buyers?
5. Are you open to an expert’s advice on pricing, staging, and prepping the house for sale?
6. Are you open to do repairs and some improvements before listing?

Good luck

I'd say first sit/meet and outline the "What Ifs" situations you can come up with. This will also serve you should you decide to seek legal work - you'll be able to provide an att. listy o things you have talked through. 

This is your opp. to discuss the uncomfortable staff . . . you most likely will never have this opp. unless you decide to sit/meet and discuss it. 

Don't seek perfection - it will not happen. What you will have is the spirit of an agreement + many pre-discussed situations.  

If you agree and in good standing w/ each other maybe it does not need to seek legal work BUT must do an agreement to be If signed that spells everything you discussed.  

If you cannot agree and still want to work together than seek legal consult. 

It is also possible that the conversation will generate tension which may end up not working together.

Such meet is: smaller inconvenience saves a bigger inconvenience kind of a mindset.  

If you plan to agree on everything - it won't happen. At some point a leap of faith is needed - the big Q is how big is the gap. 

Good luck!

I'd first create a task list of what needs to be done that will serve you whichever way you decide to go.

Then divide the list to: things you MUST sub out (that may require license, knowledge, experience you don't have) and to things you can do yourself.

Then further divide the list of things, you can do to worthwhile. ex painting can be easy but maybe getting a crew to do it will save lots of time and be done better? Or make this decision based on cost. Maybe there are task that are cheaper to sub out than DIY.  

Now that you have divide and conquer your task list it is much easier to tackle the workload . . . I hope.

Good luck 

• Mortgage
• prop taxes
• insurance
• utilities if you have
• maintenance/repairs
• If you have management and leasing fee
• HOA if you have

So you have "two" profits:

A: $61,898.55
B: $68,105

For B did you include holding costs such as ins. prop. taxes, utilities. etc? Did you deduct the rehab cost? 

Closing statements do not tell the whole story.

@Kaitlin P. wish I could answer. I'm in S. CA and did all my investments.

I do have a great local team. 

BUT I'd say if you plan on moving there rent for a while even 1-2 months to get the feel and then decide. ATL is tricky 

My first flip in Decatur GA

Purchased at the auction for 30,001

Sold in 30 days for 89,000

Expenses: insurance - $300

Was planning on rehabbing it but the person who lost the home, which belonged to her significant other who died,  wanted to buy it from us.

She knew what was going one.

She had a job and was already qualified for a mortgage. 

My team, who went to the house, made sure we do everything properly and respectfully to make sure we are doing a clean and honest transaction. 

She closed exactly 30 days after we bought it. 

Profit: $54000 on a $30500 investment in 1 month.  

Since then I have seen many other high return transactions but not as good as this one. 

@Oren Kachel TY for the offer. Des Moines doesn't fit my investment formula. 

@Joshua Gutierrez

What a great goal and question. 

I was wondering, since this is a year old post, have you any closer to that goal?

Do you feel you have an answer or a formula? 

I took the time to think about is, and here's my take - reverse engineering:

• Goal $50,000
• cashflow/property once paid off: $1,000
  Property purchase price $100,000 - out of state (not in CA)
  
• # of properties needed:  50
  Cash needed 25%: $25,000 - assuming 20% down + closing costs + mostgage cost + some make-ready 
  Cash per portfolio:  $1,250,000 + mostgages

If you don't take in any cash flow and use it towards extra principal payment you could possibly get it paid off in 11-13 years.

If you don't have $1,250,000 at your disposal you should incorporate a BRRRR that will enable you to build it but it will slow you downs.

OR

If you are able to generate $300/property in cashflow per month (after all expenses) - it is doable than every 10 houses will generate you the needed downpayment for another house about every 8 months. 

For example: when you get to 10 such houses after 8 months you'll have the downpayment for house 11. 11 such houses will buy you 12th house in 7.5 months . . . . 

Once you have a basic MO you'll be able to improve it and accelerate it. 

when you are 10 years from the goal starting slow is the last thing you want to do BUT 0 to 50 houses is hard to digest. 0 to 10 is much more comprehendible 

@Scott Robinson
Hello neighbor  . . . I'm in Irvine. 

I have been investing out of state for almost 20 yrs . . . but not in Des Moines (PHX, Dallas, Houston, OKC, Tampa, Orlando, Boise, SLC, Nash, KC MO,  ATL, . . .

I have been working w/ PMs for  . . . almost 20 yrs.

In the past yr in areas that I don't have not certified a PM for our needs, I started using a tech platform. This is a kinda combo between self-manage and operational support. 

For local expertise, I use the internet + a realtor.