All Forum Posts by: Jeff Gold

@Collin Hays true.

I’m looking at a property that’s listed at $160k. The profit would be about 500/month profit (after expenses) and putting 10% down. 

Would you classify this as a good/profitable deal?

@Cliff H. points well taken.

I live in Florida and invest in NC. So not in my backyard but certain areas you grow to know very and what works. Having realistic expectations is so important. Yes, 5 years or more year
is really how I approach things. Long term focus. For me, to make a large investment for small ROI makes no sense.

If the market slows and your investment goes down and you have a small return you have to wait it out and years can pass being stuck in an investment you don’t want to be in. 

So, the deal has to make enough economic sense where I know the return annually is good enough that even if price of the property slightly dips you are still banking monthly.

Sometimes sitting on the sideline isn’t bad. Sometimes it is. If we only had a crystal ball….🤣

Sometimes it’s just timing. The more I’m researching I’m noticing big manipulation in the market. Found a food own today had “meat” on the bone and found out from realtor that in the “hidden” notes only he could see that were taking competitive offers over a certain time period. Basically a bad auction that will jack up the price an elevated level. Let the buyers beat each other up and the seller wins - every time. No thank you. 
when you ha e a lot of hungry people and a little food they will fight over scraps. 

Not my style. 

@Dave Stokley I wouldn’t go out west. I think it’s probably one of the worst areas with an inflated market.

I’m sticking with western Carolina mountains. 

@Kerry Baird I’m not familiar with this approach. Would love to learn more.

@Ryan Moyer I like a lot of meat on the bone if I’m going to eat. Don’t want to leave a deal hungry. 😉

@Jonathan Dempsey yes. Location is key. My issue is less about location as I know where I want to be and more about the right deal. People are paying well over asking routinely and have lost sight of whether it is a good investment because many are simply buying to as a 2nd home to escape to on the 
weekends. They aren’t necessarily seeing it thought the eyes of a businessman/woman. This has lead to more inflated pricing. 

@Jayson Cain BRRRRSTR I’d definitely not my speciality but a good approach to decrease downside of investment. I prefer to buy and maybe do some minor rehab or none if possible. It’s good to know what you are good at and what you aren’t. 

@Joshua Strickland very creative approach. Using 2019 revenue projections & see if I can comfortably cash flow with a lower down payment is an interesting angle. Gives you a little cushion and long range perspective. 

@Joshua Strickland that makes sense. Trying to keep as much cash on hand as possible but I understand your point.

The challenge: As prices for homes go up, the rental market in certain areas can hit a ceiling (based on avg I come in that area) so you start heading toward diminishing returns.