All Forum Posts by: Jennifer Jo McCallon

 I think you have to start small and prove yourself. I think my husband was a bit apprehensive in the beginning because this was new to him- once we owned a few properties that cash flowed he was super into it. 

Well, that sucks. In CA, where I live currently, it would probably be a lost cause to even try to collect. But in Pennsylvania, I had good luck representing myself against a tenant in court and was able to get a judgement against her. Probably worth a one time consultation fee to see if it is worth it to hire an attorney or if it is something simple enough that you can DIY. 

FWIW, I am a landlord and currently taking law school classes so I have a better understanding the next time I have to do this. I have represented myself as a landlord a few times and it went well (the law was on my side). Highly recommend you take a contracts class and torts class. (I have not yet taken torts. Some schools will allow you to audit for free, I am doing a contracts class for free @ Harvard online)

As an agent: A raccoon came out from under a bench in a foreclosure and walked through the room and out the door to the other room in a huff like he owned the place & we were interrupting

As a homeowner: I bought a house decorated with wicker, clown paintings and mirrors (tripled in value since 2012)

As an investor: I had a tenant who wasn't paying her rent. I had to swing by to fix something- this was in like 2008... we were on the verge of evicting and she had a flat screen TV. In 2008. I still had a CRT. Anyway, I said something like "How can you afford a flat screen TV when you can't afford rent?" she said "Girl, you know when you get a little money from your tax return, you gotta get yourself a lil somethin' somethin'.  Know what I'm saying?" I replied "Girl you gotta pay your rent or I'm going to evict your sorry ***." I was young, naive, new to real estate, and I think I almost puked with nerves when I walked out, totally out of my comfort zone. 

If everyone is overpaying then nobody is overpaying. Also, the nearby comparable may have issues you are unaware of, like foundation problems, dry rot, or might look good but need new windows or HVAC. There also may have been seller credits. Backing out and losing $4k, spending more time looking when you think you overpaid by 10% (which is $4k based on your purchase price) is probably not a great idea. 

I'm having a hard time following your math/logic/narrative (could be me)

But: I would say, why not start small- a HELOC is flexible, so take out $50-60k,put 25% down on one property that cash-flows and can support itself and the HELOC payment. Then decide if you want to go bigger. Now this depends on where you are in the country and where you are investing, of course. And *if* you want to put the time and effort into fixing something or I a turnkey makes more sense for what else you have going on in your life.

I guess I should mention I generally don't buy SFHs. The cap was the go-to metric 15 years ago when I started investing, now it seems way more factors come into play, such as appreciation, quality of the property (I bought something with a 22% cap in Braddock PA last year, but also the wind could blow it over at any minute...), and estimated future value increases.  Happy to be here and learn and grow! Thanks all. 

I'm in CA, own here and Pittsburgh PA, great cap rates and I enjoy visiting (also it is my hometown)

Not to be all woo-woo, but how about be BOLD when others are fearful? (Zig when everyone else is zagging?)

When interest rates were much higher, we only looked at places with a 10+ cap rate. Now that interest rates are so low, properties cash flow with a lower cap rate than in the past, leaving more wiggle room in pricing. We wrote an offer today on a turn-key rental property in a B+ neighborhood with a 7.5 cap. My last property had a 11 cap. I know in the Bay Area we see more like 5% cap rates. Side note: In what cities are you seeing the BEST cap rates?