All Forum Posts by: Dani Beit-Or

I'd say more info is needed or you need to ask yourself some good starting questions.

The easiest way to go is to ask for an area to invest.

But from my experience, it is better to ask myself few questions that will help me zoom on the right investment for ME (YOU). 

Such as:

1.How much funds do I have?

2.What’s the source of the funds?

3.Do I have a rainy-day fund?

4.How free/busy am I?

5.Do I want to be actively or passively involved?

6.Can I get a mortgage?

7. What’s my WHY – am I trying to accomplish?

8.What are my concerns:

-Vacancy, mortgage, will it go up or down, will it rent, can I trust the property manager.

9.Can I analyze a deal?

10.Do I understand the risks involved?

11.Do I have an exit strategy/ies?

12.Am I a doer – will I be able to pull the trigger when the time is right?

13.Have I set my investment criteria – my buy-box

I'll keep it simple . . . I like (for almost 20 yr) good, quality SFHs in various US metro's suburbs.

This in my opinion is a long game and requires patience BUT a relatively simple one to evaluate, handle, manage, liquidates, finance, etc. 

I like boring ones for example a SFH in the suburbs of Nashville or Kansas City, 3/2.5/1750/ 2000 built, good schools rented to a family w/ 2 kids and a dog . . . .truly the American Dream.

I'm staying away from older, smaller in sketchy parts of town that on paper are cash cows but in reality . . . not.

To me boring real estate means you can live in LA, own one or more in KC, use a good property manager (not all are bad/jerks/crocks) rent out, still experience typical and minimal rental/house issues (yes, you will have them I promise) but at least encounter them less frequent.

Couple of things to know about this type of investing:

• relatively low risk
• relatively for real estate a more liquid asset
• once you buy and see how it works and build some confidence - easy to duplicate
• doesn't require extensive experience
• if done correctly can be done in the background of your life, ie you don't need to be actively present on a daily/weekly basis. 

Please know this:

~22 yr old that is starting in RE - WOW, amazing. Real estate LOVES time and at 22  . . . . OMG!

Tell your friends that the best thing that can happen to them is that after 6 mo - a year of seeing how it works it alters the way one thinks about $$$ and re-align one's financial mindset and priorities. All from investing. 

good luck!

Keep it simple (easier said than done)

Meaning:

a 20k to 40k rehab is 10 times simpler than a 100k rehab (although the budget is only 2.5 times)

A 100k rehab will likely yield a much higher return but the complexity will by many folds. It will likely need many more involved parties, and each person creates more management challenges and more friction.   

Also, watch progress and payment like a hawk. If needed use micro-payments. 

 anyone looking to work w a true PRO and honest person in OKC for management and acquisition @Rhett Tullis is a great person to work with, speaking from extensive personal experience. 

Following

@Shilpa Matlock 

Thanks for the feedback. 

1st year in the life of a rental it typcially the worst one. 

The excel that we keep improving (we are now at version 4.5) and that have been used to analyzed properties more than 50,000 by our network and clients is available for purchase.  

Respecting forum regulation about a promotion I won't be including a link . . . . sorry.

Luckily I had only 1 project w/ Bildwise, which eventually we hired someone else to finish.

Like others have said - great first impression . . . poor (very) execution. 

At some point, I felt as if they are punishing me due to friction w/ my local rep. 

As much as I can tell they claim they vet the GCs but if this is how they vet them this is a joke.

They claim they do all the following but in reality is it done poorly:
Followups 

Checking on renovation progress - what a joke

Checking on timelines . . . after they pass (if at all) 

I may consider them for my mailbox painting but that's about it.

In my experience $20k to $40k us very steep and I know that there are programs out there w great success and track record for much less.

20-40k is almost a the whole down payment on an out of state nice rental

@Mark Roussin hello neighbor (I'm in OC too)

After many years of investing and assisting others I think the best way to go about it is actually first asking your self few important questions that will help you decide what path to take.

1.How much funds do I have?

2.What’s the source of the funds?

3.Do I have money in my rainy-day fund?

4.How free/busy am I and do I want to be actively or passively involved?

5.Can I get a loan?

6.What am I trying to accomplish?

7.What are my concerns:

•Vacancy, mortgage, will it go up or down, will it rent, can I trust the property manager

8.Do I know how to analyze a deal?

9.Do I understand the risks that are involved?

10.Do I have exit strategy/ies?

11.Have I set my investment criteria (baseline)?

12.Am I a doer? - Will I be able to pull the trigger when the time is right?

I hope this help and good luck

I ran this through my fin. model (see below) and used the #s you have provided. 

Based on your number I'd say that in my opinion and experience, based on the #s only, this is a good one. 

I know nothing about the area so I cannot provide an opinion on that aspect.

With that said I think it is possible you may have missed few things:

1. Leasing fee

2. Even if all the units are occupied I'd assume some immediate investment would be needed for some repairs/improvements/fixing liability issue/etc. - did you budget for it?

3. Did you include mortgage cost and closing costs in the amount of $$$ needed?

4. Did you make sure property taxes are correct? I hear OH taxes are very high

5. 6% int. rate? That sounds a bit high to what's available in the market palce. 

--> best suggestion I can give you is to put an offer in at what makes sense to you.