All Forum Posts by: Jesse Richardson

Many guys start off wholesaling because you can do it with little money. It's more of a job than investing, but you make money on the resale. I'd suggest start off with something like that. Also, go to REI meetings, get your RA license, and/or get a job with a property manager to learn the business.

Ask yourself what you're trying to get into.  Get into that arena by adding value to someone else's business.  Work for free if you have to, just to learn.  Don't forget, listen to the BP podcasts in your free time.  They are gold!

would love to hear the finished story!  Do tell.

that was a question I had too and assumed that the tenant would pay that, but I believe it's bc the city won't allow those to be transferred to the tenant.

It's in Cleveland with HWPG. I've had a really good experience with them on my last property, so I want to pick up a few more.

 In Hawaii, this house would be worth $400,000 or more in a D class area. Oahu, in general, rates right up there with Manhattan and San Francisco as far as real estate goes. It's crazy expensive.

Mike,

It is in a C market and yes, I would rather buy a B- rental.  But I'm really in the beginning  of my investing career.  This would only be my 11th unit.

Based on the ARV of $55 to $60k, would you still say it will be hard to sell?

My plan is to get enough cash flow going with these C properties, and then switch to B class soon to get more appreciation.

I'd be in it for $43k, but would likely rent it for at least 5 years and then upgrade it or keep renting it.  I should be able to  sell it at a gain.

@brent coombs, I would rather do that too, but I don't have a portfolio bank that I'm working with and I have 7 loans as it is which puts me me in a high cash requirement because of the lending laws (6 months x all mortgages + closing plus+ 25% down) so that's a lot of money for me. So doing this deal at 7.5% CoC is better than letting my money sit.

I think I'll do the deal and refi cash back out a year later.

John,

Thanks.  That's exactly what I was thinking.

ARV is $55 to $60,000 based on comps. These numbers are from the BP calculator.

Thanks for helping and for the advice

Hi BP,

I'm working on another deal and was wondering what you all thought as experienced investors.

It's an SFR in a C class neighborhood. It has 4 beds and 1.5 baths about 1670 sq. Ft.

Asking price is $35,000, but hoping to get it for $30,000 for a cash buy.  It needs approximately  $10,000 to get it rent ready.

Rent is roughly $900 to $950.

Insurance is $72/month

Taxes are $150/ month

Water/sewer is paid by me and is estimated at $70/month.

I estimate repairs, cap ex, maintenance and vacancy to be 36% total.

No mortgage.

That puts me at around $250 to $300 a month cashflow.  I'm not expecting much for appreciation.

Would you do it?  What do you think?  Do you need more info?

Thanks,

Jesse