All Forum Posts by: Jake Wiley

@Samantha StevensI think you might be wording your question wrong.   I am a big believer in setting your mind right and being clear on where you are going.   Based on your question, you are looking for the barriers rather than the solutions.    

In reading the post you've stated that your barriers are network and resources to go out of state.   I'd turn that around and focus on how you can work on the network and resources to go out of state if that's what you are looking to do.   Or... is there a possibility that within 90 minutes of where you live there is a viable option that is not outside of your resources and capabilities.      

The obstacles are real, be honest with what they are, but don't go looking for more.    Unfortunately, it is often a lot easier to convince yourself there are too many obstacles and then go look to validate that assumption than to systematically work to take the obstacles out.   

You can do this - Good luck!  

You can call the water company and explain what happened and see what they might be able to do.   Sometimes they will surprise you.   They can also likely set up a payment plan so it doesn't have to all happen at once or you are disconnected.  I know in many jurisdictions, the water is broken down between water and sewer.   With a leak, you can make the case that the sewer part of the bill shouldn't be the abnormal amount.   You will likely have to furnish some documentation, maybe from a plumber that there was a leak.    

Call and ask, the answer is no unless you do.  

The best advice I ever received was to always buy for cash flow and never for appreciation.    When you are an investor, cash flow is what really sets the value of the property and appreciation is a bonus.   Don't get me wrong, I like the appreciation as much as the next guy, but when you know your investment is fundamentally strong when it cashflows.   

The market is in somewhat uncharted waters right now in terms of how hot it is, so appreciation is never a given.    Having lived through the last down cycle, I can tell you that rents can go down, values can go down, jobs are not permanent.   The ride down is much faster than the ride up!   

With all that said, keep it up and good luck!

@Obi Emegano - While I can't advise you on the agent side of things, I would advise you to jump in and gain the knowledge you need to feel comfortable having the discussions and know what you want.   An agent is going to show you properties and talk about the market, but you need to know what checks all of your boxes.    

While Joe Fairless' book gets into syndications, it does a great job of getting into the nuts and bolts of looking for an apartment.    

Good luck! 

@Russell Quealy - Only good advice I can give you is to keep at it, keep looking at deals.  In this market, it is more about volume than anything else.   The more you look at and make offers on the more likely you'll find a deal.   There is nothing new in that statement and applies at all times, but if you can build the right focus and habit through frustration you'll start to win and when the tide changes you'll be out hustling everyone else.    

The other piece of advice would be to stay true to your numbers.   It's easy to let speculation and hope work its way into your diligence to get the numbers to work.    You may have to work in the fringes a little bit, but it's better to have not done the deal than to have done a really bad one!   

Lastly, tell everyone what you are looking for you will never stop being surprised where the opportunities come from.   

Good luck, your persistence will pay off.    

In addition to the above, tell everyone that you meet what you are looking for.    Find a way to work it into the conversation.    Ask the other person what they are working on these days, what's new and keeping them busy, they'll likely as you the same question once they are done telling you and that's your opportunity to throw it out there.   

If someone else is mentioned as a possible connection, follow up on it, ask for the introduction etc.   You'll be surprised where deals come from.   

There are pro s and cons to both.

With the 6 plex the pro is that you have more diversity in your leases, if one is unoccupied you are down 17% of your income, with the 4plex its now 25%.

The con is that you have more leases, more turnovers, more kitchens/appliances, etc.   

I would expect that financially it would be slightly more advantageous one way or the other that would help you make the decision.    

Is there really a strong market for 1/1s in your area?   If the demand is stronger for the larger units they will rent faster etc and you'll deal with less turnover.

Typically you'd find that the lease is with a company and the property manager may be the same company or a different one.      You could just happen to be Hilary (no last name given) from Nelson Property management.   

The short answer is that stuff breaks.  It always goes south at the most inconvenient time and, now more than ever, it's hard to find either parts or help to get out there timely.    You've got to be mentally prepared for it, otherwise it is this type of thing that will drive you out of the game.    

Try to buy appliances etc that are very common and were made by the millions or can be replaced simply.    

I once got a great deal on two HVAC systems for a duplex we had, we ended up having to replace them because they failed often and there simply weren't parts to fix it and my HVAC guy almost fired me as a customer because he even got tired of trying to deal with it.     

Water heaters, ovens, refrigerators, HVAC systems etc.   Something will stop working and having systems that you can go down to the parts store and pick up a replacement part is absolutely critical.  

Great question.   
  

@Victor Cook - Congrats on making the decision to make something happen.   The best advice I can give you is to get that first deal done.    Don't try and wait for the stars to align, it will never all be perfect.    Once you have your first deal, you've got momentum!   

Good luck!