All Forum Posts by: John Kesner

Ronin Crimmons I would heavily consider location (I don't know your area). Rental rates and home values are very location based. You have a big chunk to invest, I would go for the best location you can afford. It will make keeping it rented easier, attract better tenants, appreciate the most and be the easiest to sell should that need arise. You must consider your exit strategy, even tho you plan to be in it for the long haul. You never know when life will throw a curve ball at you and change your life's entire direction

Michael Hon Great job! Looks fabulous! Did you do the work or sub it out? New cabinets or reface? It looks like you really got a lot done for $39k!

Maurice Graham That's exciting stuff!! How are you planning on financing these projects? I have been interested in similar properties. What are the cap rates like in your area? Are you targeting value add or more turn key? -John

Nick Ovington I grew up in Cambridge, my fam is all still there. T.O and the burbs have gone nuts! Even Milton and bedroom communities are pretty crazy. Good luck on your goals!

Dave Curriston Wayne Brooks Thanks for the replies! It helps to know I need to work on my team!

Mike Jebo Airbnb is a great way to fill in the gaps between longer corporate leases but nightly rentals is a lot of work. The goal is to get leases in the 3-9 month range. Lots of industries have a need for corporate housing weather its the employees choice (like traveling nurses or high paid contract workers that work 3-4 days in the city) or by company assignment (like an engineer brought in on a big construction project) Furnished corporate housing can rent for 2-4x what a comparable unfurnished unit on a traditional 1 yr lease will bring. Just a thought, it could make a property cashflow that otherwise would not have.

Ariou M. I hear your frustration with the financing issue. What I have come to learn is that you will never get a conventional loan on a fix and flip property. The properties that need significant work are not going to meet the fha guidelines (what all the big banks use). No one is getting a conventional loan on those. Its like a catch 22, just needs cosmetics = overpriced for an investor, needs tons of work = big risk for someone inexperienced. You have to get a hard money loan or a "friends and family" loan to buy and fix. This is where having some help comes in because high interest rates and a huge remodel project makes for a lot of risk when your just getting started. Having someone with experience help you would make this much easier deal with.

Mike Jebo Have you thought about furnished flexible term rentals? They can push the rental income a lot higher than a standard 1 year lease unfurnished. Vacation rental is one thing and that's not what I mean. There are lots of opportunities for 3-6 month rentals of furnished units. Think corporate type stuff. Technology is making these types of rentals much easier to operate.

You definitely need your own insurance policy, mine run $6-800/yr on an SFR in an older neighborhood. Trash and water I would push on the tenants. Even if you keep it in your name, make them pay it. Show them the bill and have them reimburse you if need be. Make sure your cash positive so you can be building your reserve account in case something big comes along. You could run a test ad on Craigslist and get a feel for the rental demand in that neighborhood. You can hone in on your rental rate that way too. If it all pencils out, your good to go!

Hello Folks! So I'm wondering what strategy you guys have found effective buying a fixer upper from a major bank. Assuming the property needs significant work (roof, hvac, vandalism to windows, doors and plumbing) Do you, A. View property, get prices from contractors for the repairs required. Use estimates as justification for a low offer? Or B. Get an accepted offer with an inspection contingency, get quotes for the repairs. Then renegotiate the offer with the repair quote as back up? Lets hear your experience! Thanks