All Forum Posts by: Jaron Walling

@Devin James The 1 habit that changed my life is I started prioritizing wants vs needs. 

Almost every dollar I make (active or passive) has a job when it hits my bank account. If I want to buy something I leave it in my shopping cart for days before buying it. I circle back and think about my budget. I think about how purchases affect my personal goals, our tenants, and people I buy gifts for. 

This habit is critical for real estate investors because it forces the maximum ROI out of every dollar spent. Whether it's buying the first property, remodeling, renting, or selling it slows you down and eliminates impulse decisions.

 That's the "we don't want your business" quote. 

@Gabe Goudreau We're investors in Indy and have completed a few BRRRRs on the east side. You have to cast the fishing line over and over again until something bites. 

From an investors prospective there are few opportunities. MLS is priced aggressively and nets no profit (flip) or cash-flow (BRRRR) unless you low ball. Wholesaler is stuff is mostly bottom of the barrel. Check out 729 N Chester Ave. I walked this property about a month ago when it was full of trash. Wholesaler had it for $90k "as-is", another wholesaler bought it, cleaned it out, and relisted it for $120k. It wasn't a good deal $90k because of the age, weird layout, and the bathroom was tiny. It needs a full rehab, roof, garage, appliances, everything. We estimated the ARV to be $150-160k. Paper napkin math says skinny deal.

Don't get caught in a wholesaler shuffle. A cleanout does not create $30k in value.

Update; that property is pending at $120k so maybe I'm dumb. If it sells for >$120k I'll get a good chuckle and continue being clueless about this market. 

@Michelle Fenn That's what I've been doing with the HVAC filters. 

Hoarding is a weird situation. A lot of grey area between clutter, hobbies/side hustle, and hoarding. I'm going to give a verbal warning followed up with a text message describing what was talked about so we have records if something bad happens. 

@Haiden Welch I'd lean into local banks and credit unions. If you're new go the conventional route. The rates are better. It's a learning experience. Unless you're connected with local investors (OOS) who use these banks you won't get answers until you call. Get them on the phone and ask the stupid questions. They don't mind. They get paid to do it, and you could be the next customer. 

If you decide on DSCR loan I don't think local is as important. Our rentals are on conventional loans but if/when we refinance or get into the next deal I'm aiming for DSCR. It's a lot easier/quicker provided the numbers work for the property. There are lenders around the country offering those products. Our local lender doesn't offer it.

That's a $150-200 max job all day long. <1hr of labor but everyone rounds up. 

You got stiffed a bit in my opinion. 

@JD Martin We have a right of entry clause in our lease that reads like below; 

"Landlord may enter the property for purpose of inspections upon 24 hr. notice given to tenants. However, in the event of an emergency, the Landlord and/or his agent has unrestricted access to the property. No additional locks shall be placed on doors or windows. No locks shall be changed without Landlord approval."

Thought about adding a hoarding clause... one of our tenants has a side hustle where they buy, build, and sell holiday gift baskets. They also sell items at farmers markets. Needless to say they have a lot of stuff in our property. It's organized good, I do inspections, but my fear is the side hustle turns into hoarding. Fantastic tenants otherwise. 

Ever had tenants like this? 

@Charlie Krzysiak You have options, time to learn, and local contacts. There's nothing wrong with renting for a year, getting your shoes on the ground, and learning more about the market. Don't be in rush to buy RE unless you narrow down your location and have a buy [box] ready. Yes, condo's are a good way to get into the market but historically they don't appreciate as well. 

Unless something drastically changes in the economy we're living in an appreciation market. Supply is lower, interest rates high, and people are locked into there houses. Cash-flow is not "found" it's created. It comes from deals like seller financing, BRRRR, house hacking or a combination. Look for future value in Dallas, TX and buy it. You'll make more $$$ in 5 years holding expensive property in better locations. Just depends on your buy [box] and budget. You'll make lunch money for cash-flow. When I started I gravitated towards HOUSES and BRRRR because that's what I could afford (started with $25k and put 3% down). Rode my bike around the area numerous times. I leveraged some rehab skills most of which I learned as I went. I found a cheap distressed house in a C class neighborhood and lived there for 2 years. It was part of my plan before I even made the offer. 

Leverage your brother and other locals. Ask them about neighborhoods and get details at a street level. This is value information that others probably don't have. Combine that with local agent to "push paperwork" for you and you'll buy the right property. 

@Gabi NA Welcome to BP! You're probably overwhelmed with questions but rest assured you came to the right place. The forums and search [box] is a free REI education. Leverage it and learn. Pick up the book Building Wealth One House at a Time by John Schaub. It's chalked full of information, calculations, and advice. No fluff. 

1. Yes, most lenders will require you to live in a primary residence before moving out, refinancing, or converting into a rental. Do most investor do this? Yes/no, it's not like lenders do inspections but I encourage you live there, learn, and follow the guidelines of your loan. 

2. Speaking of loans... how much $$$ do you have liquid, what's your budget, and what neighborhoods do you want to buy in? Location, location, location. This affects which strategy you could pursue. STR and MTR are basically full time jobs when you're booked. This requires in demand tourist areas. These locations are expensive. Can you make more $$$? Sure. If you're going to school FT do you want to manage this property? Think about the value of your time. A house-hack or LTR makes more sense because it's not stressful and you can focus on school.

3. Rental arbitrage was hyped up when money was cheap. It's basically dead in most areas. You should research it and establish your own opinions but as a new investor it's a lot of work. Arbitrage does not reward the pillars that OWNING RE does. 

The best you can do research your market, improve personal budgeting, improve credit, and get your dollars working for you. Have two years of W2 income, RE goals, and start talking to lenders about getting pre-approved. Go from there. Everything else comes from networking, experience, and getting your hands dirty. 

 Winter season. That's another reason we started looking again. We have bought two properties in the winter. There's less listings but less eyes on properties. Best of luck man! Maybe you find a deal you can't pass up.