All Forum Posts by: Stone Jin

@Michael P.

The market while cooking slightly is still very hot and there is a lot of competition for what you are looking for.

2 suggestions that I would make to you.

1 don’t worry about the llc. I large umbrella and not being a slumlord will mitigate almost all the risk. The corporate veil take a lot of effort to maintain and if not done properly doesn’t give you the protection you would think.

2 as others have said to look at single families with 4-6 bedrooms as an alternative to small Mf. The cities of Gilbert and chandler have virtually no small Mf and Mesa has a bunch but most are in rougher areas. Depending on your living preference you can find a house with a guest house in nicer neighborhoods of chandler and Gilbert for about the same price as a small Mf in Mesa.

Don’t get discouraged. The market is very competitive because a whole generation of investors has the same ideas as you.

@Zack Bruce Lindsay My biggest lessons learned were these.

Don't cheap out on hiring contractors off of craigslist

Don't do the work yourself

Don't hire a handyman to do major renovations

Don't delay the process,  the quicker it is completed the quicker you collect rent.  The missed rent on 18 months would have been enough to pay for 1 kitchen or a couple of bathrooms.

Fire people quicker.

All in all, the market bailed me out and I paid tuition to get the best hands on training possible.  My large renovations are much smoother now because of it.  

@Zack Bruce Lindsay

Congrats! My longest BRRRR was 2 years and was a huge laundry list of lessons learned. This just shows that perseverance will pay off in the end.

@Anshul Pandey

We are based in Phoenix and invest both locally and out of state in Ohio. Depending what you want to buy you should definitely be getting more than $200 per door in Ohio. We buy b houses in A school districts and average $400-500 a door for single families.

@John Dahl

I’ll let @Stephen Brown and @Michael P. Chime in with their secret market

@Mitchell R.

Most investors are always looking for ways to deploy their cash. You may need to shift your thinking into the future a bit. In appreciation markets you may not get your cash on cash goals this year but will you be able to raise rents next year?

I invest locally but when it became too pricy I moved to out of state investing. I don’t use a property manager anymore and self manage from 2000 miles away.

There’s always a way but it may not be easy.

@Har Dev Singh Khalsa

Debt in real estate is very powerful. Use it to grow your wealth while having it being paid by your tenants.

Like others have said for you to save up and buy property with cash will just take forever. The other piece to consider is that debt allows you to buy and control better asset classes. If you only have 100k you can either buy a 100k house or lever up and buy 2 200k houses. You cashflow will be similar but your cash on cash return will be higher.

@Amanda Thompson

Had a mentor once tell me that a tenant with a bankruptcy is the best type. They don’t have many options to leave.

Obviously they must meet the other requirements such as income rental history background. Credit score is not a good measure of tenancy. Check to see if they pay their consumer debt ( car. Credit card). If they do then they will likely pay rent too.

@Steve Nafziger

We invest in northwest Ohio and actually think it’s missing high quality short term rentals in the nice suburbs. Go on Airbnb and search for 3+ bedroom houses for short term rental, you will quickly see the lack in inventory.

Just be aware that the city of Toledo has put out new regulations on how to operate a short term rental.

@Grant Doyle

House hack it with an owner occupied loan. You lived in it previously and now you can relive your college days. Just bring back the same roommates and all the natty light you can drink.