All Forum Posts by: Jiri Vetyska

Cash flow isn't really a metric, it's just a monthly income that doesn't tell you much. 

Cash-on-cash is what you are looking for for a long term investment, as you can use this easily to compare each deal against each other. 

ROI is more or less a metric on a existing property, where you can calculate all income, current value, against all expenses and loans.

Generally, I would look at CoC and potential ROI and compare that with other investments. If potential ROI is less than you can get in stock market or on dividends or Bonds, don't bother buying that property.

 It's not uncommon to have $250 move in fee (I don't thing there is such a thing as move out fee, since move in/out is one change of tenant). Generally the idea behind it is to lower the turnover of tenants. Nobody want's to have a different neighbor every few months. And you as owner, just forward the cost to the tenants. No big deal.

I am no fan of condos in general because of the lower cash on cash return, thanks to HOA dues, but having said that, I own one condo and it was one of the best investments I ever made. I could never find any value in condos in cheap areas, but on the other hand, condos are very nice investments in expensive areas. Where there are few apartments and a house next door costs around a million bucks.

As far as my condo goes, I bought in great area, paid less then 200K for it and now it's worth over 350K, two years later. There was nothing to do, so I rented it few days after buying it. And it takes me exactly 1 hour to rent it, I've never done more than one hour open house - and always rent for more than I my most optimistic estimate.

There aren't many good ones on the market, but there are tons of bad ones... If you see a nice condo in great area, grab it fast!

Great story J. Martin!

I know how you feel, my story is pretty much the same, except I didn't find out about BP until this year. What would happen, if I did much sooner? 

I always remember the first house I was eying in late 2012/early 2013 and thought it was too expensive and didn't get it (thus loosing out on some 150K today), but at least I learned from it and started fighting for the properties harder and they were always well worth it. Early this year I bought 2 SFR, which added to a total of 5 and worth over 1.8MM.

It is hard and stressful work, but what keeps me going is how my properties are appreciated by renters and how quickly they rent every time (never showed a property for more than a day, the last one only one hour open house when it was still in rehab mode). And it always rents for more than what my most optimistic estimate was before purchase. 

Great success story! Thank you for sharing Brie.

Anybody has thoughts on whether it's worth buying new construction SFR or townhomes compared to existing housing?

Seems to me, that new construction is gonna be a bit more expensive, but I should be able to ask for higher rents. And on the plus side, there won't be any maintenance for many years to come unlike older houses that need lots of fixes and upgrades now and then. 

Any experience or real life comparison is greatly appreciated.

Thanks.

Renton Highlands.

Hello Bigger Pocketiers,

This is interesting new community that I wish was here years ago!

I am Jiri Vetyska and currently have several SFR and condo rentals. It is great, and I enjoy it, but there are very few good opportunities and it's a lot of work to get one property. So I am pursuing multifamily business and currently evaluating several opportunities.

I would like to meet awesome people of all trades, especially responsible handymen, management companies, other multifamily investors from Seattle area (to potentially partner on a bigger deal), mortgage and private lenders, layers, accountants...