All Forum Posts by: Jaron Walling

If a prospective tenant can't come up with security, first, and usually last months rent they're not getting the keys to my property. 

This feels like a yellow flag from a landlord to PM prospective. No thanks. 

@Ethan Maciejewski What did you pay for this property, and what are the expected rents? 

Better justify the costs to renovate the garage before doing so. 

For us it's been savings, private money, and credit cards to get BRRRR deals completed. I partnered with family but I'm managing all the contractors, buy some materials, and DIY projects where I can.

We're not using any HM. 

@Aaron Wadsworth That's great man. Couple of things. 

You said you have 273 expense items. You need to put them into "buckets" and call them a project. If and when you start hiring contractors you give them projects and they either; A use your materials, or B; (most cases) they go out and purchase the materials on your behalf. And your totals and start getting quotes for projects you're not going to DIY.  

"Fortunately the last owner left at least 7000 in tools and supplies behind, which will be put to very good use to that effect." - This may seem like a plus but in our experience it's a red flag. Unless you know the back story and have no fears about the house something stopped the previous owner from finishing the project. You better have the means to solve those problems or get friendly with contractors who can. Investors dump unfinished properties all the time because surprises are found, and thus the investment isn't worth the return. 

This sounds like a big project. Stay on budget the best you can. If you're going off the tracks pick up a hammer and DIY a project. Labor expenses could kill this deal if you hire the wrong people. Pick the simpler design and get this property rented ASAP. Every unit that's vacant is costing you money.  

We find our contractors through our REI network, and FB market place. I've walked onto active job sites, talked to workers, and got a business card. Look for the hard working small crew. Meet them in person, get a reference, and see what other investors say about the contractor. That's all you can do. Most of the contractors we hire don't have Google reviews, and do no marketing.

 Facts. 

@Kelly Bailey When you first got into MTR did you jump on Furnished Finder, and let people reach out to you? Do you have connections with local hospitals, businesses, etc. to better connect with future guests? How much do you spend on decorating the rentals you own?

It's not really a tenant, it's a guest. That's weird to say.

PS: We have zero experience with STR or MTR, but I like the idea for our next rental. Indy has a $5B hospital being built in downtown... seems like a smart strategy.

@Michael Del Vecchio Welcome to BP. Thank you for sharing your story. There's a lot of discussion in the forums. There's probably more people reading and not evening posting things because they don't have the courage to do so. 

This website is a REI library. Pick your own adventure. Spin the wheel and start learning. Lots of things in life are emotionally driven choices. REI is not emotional. Buying property is based on research, numbers, strategy, and the money you have to invest. You stated you have roughly $70k + basically free living. Putting the divorce aside that's an amazing place to start. One of my best friend got divorced a few years before I met him. He's back on track crushing it with his retirement account. He's 45 y/o and recently bought a house because he stopped wasteful spending. Not saying that's you but personal finance and money habits are more important than buying real estate. If you have any "bad" debt pay that stuff off, get a 6 months emergency fund (pretend your paying market rate rent), and then focus on investing.

If I'm in your shoes I'm stock piling cash into a HYS account 1-2 years. I'm networking locally, running numbers, researching my local market (or specific OOS markets), and picking a lane for REI. You can't do it all so niche down and get great at one or two strategies. BRRRR, flip, wholesale, live-in flip, it doesn't matter. LET YOUR NETWORK and future REI team help guide you. That's why my wife and I continue pushing for BRRRR investing. Remodeling, swinging hammers, and estimating rehab costs are my skills. Find your advantage and use it. Keep your cost of living low, live below your means if you can, and keep going.

Rome wasn't built overnight. 

@Luke Mertz I just wrote a post that brought back memories from 2018 when I bought my first house which now a LTR. 

If I could go back I would have networked a little more, talked to more investors, and bought a little more aggressively. I only got two deals under my belt before the pandemic (conservative investing), but I could have bought more if I asked the right questions to the right people. Post pandemic and in this higher interest rate climate it's been hard to BRRRR. We continue to buy distressed SF opportunities, but the numbers are slim compared to 2018-2022.

@Alex Quinlan I'll try to answer this for you; "How do you actually practice analyzing properties if everything on-market has probably already been passed on by experienced investors?"

I struggled with this logic when I started out in 2018, and I'm here to tell you not every house has been combed through by investors. Opportunities were better in 18', but my budget was equally constricted. Every dime I had went into my first live-in flip. I had no emergency fund or reserves. That's was experience. 

Both of our markets have local and lots of OOS buyers, but most people don't have a team to get deals done as easily as you believe. If you're not talking to contractors, agents, wholesalers, private money lenders, or walking potential deals you need to change that. Establish relationships that want to help you buy your first investment. People know you're serious when you shake hands, do what you say, and pay on time. That's your advantage. Leverage it. 

Change your mindset and look for clues. Longer DOM, bad photos, listing wording like "fixer", "as-is", "DIY", "rehab special", "mold", etc. all of these things push people away because people gravitate towards shiny objects. Generally speaking that's not where money is made with REI. At a minimum you need a skeleton team to lift a property up, add value, and a strategy to follow based on the $$$ invested. Any property can be a deal. Your neighbors house could be a deal. It's always about location, seller motivation, talking to people, and buying it right. Build some spreadsheets and understand how to pull the strings to make a deal. After that you pull the strings in real life and try to mimic what you did on paper. That's that fun part. Cheers. 

Trump fired the Bureau of Labor Statistics commissioner Erika McEntarfer last Friday because the numbers were “RIGGED” so I think we're in for a bumpy ride. 

When the facts don't align with your agenda just fire people. Appoint Kevin Hasset or Scott Bessent to change the numbers. Turn facts into fiction. The clown show continues.