All Forum Posts by: Joe Meares

@Pierre Butler

Thanks bro! Good point about location/schools

@Bud Gaffney

Happy to help!

I invest in single family homes in the Midwest outside of Indianapolis, but working on expanding into multi-family so your question landed at the right time :)

@Bud Gaffney

Hey Bud, hope you had a nice Thanksgiving.

My first question is, what is your estimate of NOI out of the gate? I would use this to inform you what your annual FCF is going to be. I like to look at deals in terms of nominal FCF, and cash on cash returns...in your case the latter would be infinite assuming the properties cash flow positively since this is no money down...nice!

Then I’d ask these questions:

Do the properties need work? Ie how much cash will you actually need to get the deal done right, and if it does need work, what do you think ARV is in the event you want to pull cash out of the deal?

Are utilities individually metered?

Are they 100% occupied?

Are the tenants month to month or annual leases?

Do you have the ability to add to the topline of the properties through laundry or parking spaces?

Do you have the ability to cut costs on the property via reducing expenses such as utilities or trash removal etc?

My only concern with the numbers you showed are that ~$111k per unit is more than I like to spend, but that’s more of a personal preference.

Hope this helps, good luck man!!

Hi all!

Just wondering if any of you are members of real estate investment clubs in Indiana, looking to join one (or all of them) if you've had a good experience. I invest in single family homes there, eventually plan on moving into multifamily, and I'm looking to network with other investors in the area. 

Thanks!

Joe

@Chris Virgil-Stone

Have to agree with Chris, read Long Distance Real Estate investing first. When I invest out of state I make sure that the core members of my team, my agent, property manager, and contractor, have all been inside and given me their opinion on 1) quality of the location, 2) rehab estimate, 3) estimated rent post rehab, 4) after rehab value of the home so that I have an idea of what I can take out of the house when refinancing under a BRRRR framework. I also come up with my own opinion of these prior to even asking my team to look at the house to make sure it's worth our time to do deeper work on the property.

Good luck!

Joe

Hi everyone, just wanted to thank you again for all your help on this one. We were able to get the tenants to sign on for an additional one year lease that starts next March by agreeing to put up a simple privacy fence between the two houses. 

Have a great weekend!

Joe

I just wanted to thank everyone for these awesome and in depth responses. Extremely helpful!

Also would like to provide a quick update/clarification on the situation, as I spoke with my property manager this morning:

This is an out of state investment so it’s hard for me to go talk to the neighbors (Indiana property, and I’m in New York)

The neighbors do not keep the outside of their house in order, they seem like some sort of hoarders. It wasn’t like this when I bought the property a year ago, but it’s gotten noticeable since then. Their junk is beginning to spill into my property’s yard, and the neighbors themselves have been loitering in my yard at times during the day and “scaring the wife” with their presence.

The husband has spoken to the neighbors, but they essentially disregarded it.

The tenants thought about going to the police, but these neighbors are so weird that my tenants are afraid of reprisals if they go to the cops. They have two young children, so I understand their concern.

They are great tenants (pay rent two weeks early every month, and have kept the house in great shape) so I’d like to keep them if at all possible without breaking the bank on a fence. So I’m taking all your advice into consideration, again I really appreciate all the feedback here!

Joe

Hi guys!

Question on handling strange neighbor behavior. One of my tenants is a young family and a neighbor has scared the stay at mom a few times by randomly showing up in their back yard, I think a fence would solve (most of) the problem, but I’m wondering if any of you have dealt with this in another less expensive way that worked well.

And yes, I learned my lesson about buying homes on this particular block :)

Thanks!

Joe

@Michael Craig Thanks Michael! really appreciate the thoughtful response. I'll look into these as well as Digital Watchdog @John Underwood

@John Underwood Thank you very much for the detailed response, sometimes I try to have my cake and eat it too :)

Joe