All Forum Posts by: John McDonald

Quote from @Donnie Tucker:

Quote from @John McDonald:

Quote from @Sino U.:

Quote from @John McDonald:

Who would have ever thought that the midwest would be such a "hot market". How times have changed. 

@Sino U., don't worry about others enthusiasm, only about your own. Realtors work for you. Have a plan and leverage them towards your goal. They're not going to do it for you, no one will. You have to apply pressure when necessary to keep the ball rolling. There's LOTS of wanna be investors who start down the road, make a lot calls and take no action. If you want it to happen, YOU have to make it happen. 

Good luck with your journey.

Cheres,

 I totally agree with your sentiment. I guess my issue so far has been like the knowledge of a realtor, they just seem to be rolling with what I said vs giving a detailed explanation of the neighborhood. Maybe I am the one who is asking the wrong question :) 

In terms of the neighborhood, you can learn alot from demographic data(this tells you what it's like right now), sales trend data(this tells you how it's projecting - are you seeing an increase in property values) and new listings..are now homes being built, are other rehabbers in the area, are there LOTS of rentals or only a few. These data will direct you to neighborhoods that meet your investment criteria. Then contact a realtor and let them know that you're looking for homes in those areas.

I find that most realtors aren't really interested in "working with investors", they're only interested in closing a deal. Once you start getting some volume under your belt, they'll be reaching out to you with deals. But that takes time to build that trust.

In the mean time, it'll be up to you to trudge through the deep snow to make a path. The first one is always the hardest. 

Hi John.  Do you have any websites you can recommend for finding this data?

Demographics data is widely available, just google it. Market data can be found on sites like Redfin, who has an exception data science team that delivers high quality reports, for free. https://www.redfin.com/news/data-center/

I like to look for areas that have been traditionally out of favor but now are seeing strong demand. Due to covid, there's lots of these areas now. 

Of course, current market data is available on any MLS website. Just look for areas that meet your investment criteria for demographics and then look for deals in those areas. 

Quote from @Sino U.:

Quote from @John McDonald:

Who would have ever thought that the midwest would be such a "hot market". How times have changed. 

@Sino U., don't worry about others enthusiasm, only about your own. Realtors work for you. Have a plan and leverage them towards your goal. They're not going to do it for you, no one will. You have to apply pressure when necessary to keep the ball rolling. There's LOTS of wanna be investors who start down the road, make a lot calls and take no action. If you want it to happen, YOU have to make it happen. 

Good luck with your journey.

Cheres,

 I totally agree with your sentiment. I guess my issue so far has been like the knowledge of a realtor, they just seem to be rolling with what I said vs giving a detailed explanation of the neighborhood. Maybe I am the one who is asking the wrong question :) 

In terms of the neighborhood, you can learn alot from demographic data(this tells you what it's like right now), sales trend data(this tells you how it's projecting - are you seeing an increase in property values) and new listings..are now homes being built, are other rehabbers in the area, are there LOTS of rentals or only a few. These data will direct you to neighborhoods that meet your investment criteria. Then contact a realtor and let them know that you're looking for homes in those areas.

I find that most realtors aren't really interested in "working with investors", they're only interested in closing a deal. Once you start getting some volume under your belt, they'll be reaching out to you with deals. But that takes time to build that trust.

In the mean time, it'll be up to you to trudge through the deep snow to make a path. The first one is always the hardest. 

Who would have ever thought that the midwest would be such a "hot market". How times have changed. 

@Sino U., don't worry about others enthusiasm, only about your own. Realtors work for you. Have a plan and leverage them towards your goal. They're not going to do it for you, no one will. You have to apply pressure when necessary to keep the ball rolling. There's LOTS of wanna be investors who start down the road, make a lot calls and take no action. If you want it to happen, YOU have to make it happen. 

Good luck with your journey.

Cheres,

Hi @Levaughn Bolden. Welcome to BP. Jacksonville is a great market for flips. We're showing more than 150 opportunities in the greater Jacksonville area.

Good luck with your investing journey. 

Cheers!

Everything has gone up. Get several bids. Go overboard with the number of bids so you have access to several contractors that you are happy with and can call in case your go-to contractors have their schedules full. Always be prepared- assume the contractor will be in the middle of the work and will disappear on you. (bigger paying job, death in the family, moving, etc) 

This is tough. My suggestions are just that- Food for thought.

Explain the situation to your insurance provider. They might have protocols for such scenarios or could offer a temporary solution until you gain access to the property. 

Your attorney might be able to help you obtain a court order. This order could potentially grant you access to the property for inspection, considering the insurance requirement.

If the current insurance policy is unfeasible due to access issues, explore other insurance options that can provide coverage under these circumstances.

Keep a detailed record of all your attempts to conduct the inspection and any communication with the tenant, the insurance company, and legal entities. This documentation can be valuable in legal proceedings and dealing with the insurance company.

If you haven't already, a professional eviction service might offer additional strategies for dealing with difficult tenants and can coordinate with law enforcement to ensure safe access for inspection.

Hiring private security for a short period post-eviction can help ensure safety. They can monitor the property, especially during and immediately after the eviction process. Cameras are a must.

Consult with your attorney about obtaining a restraining order against the individual.

Without divulging too much information, let the neighbors know about the situation. They can be extra eyes on the property and report any suspicious activity. 

There are usually specific laws about how to deal with tenants' belongings post-eviction.

Quote from @Danny Bennett:

In the year 2024, I have within my strategy to flip 2 properties. During this time, I will be in an area not suited to investing. However, I will be looking to invest in my hometoen where i have been able to build up a foundational network to facilitate a flip. What systems would you create to make it go smoothly? Who would you recommend on your team to make it run well? What barriers can arise when investing remotely?

The best advice i can give you for flipping remotely is to focus on your local team, first. Id have at least two solid contractors with verified referrals before your start any project as they'll be the first to make it burn to the ground. They should be willing to work with you through your startup phase and help you avoid costly mistakes. A good GC can manage the project for you remotely. A bad GC will ruin you. 

Good luck. 

You do have the legal right to take pictures. Just make sure the pics are only of anything that breaks the lease or has significant damage. Do not include pictures of an entire room that shows their belongings. Each pic should be zoomed in on the damage. Make sure to notify the tenants that you may be taking pics so they can prepare and you can address their concerns ahead of time. 

You need to look at this from their perspective. You will want to avoid negative reviews at all costs once they move out. Personally, I would take pics before they move in. There is no need to do this during inspections unless you plan to show the pics to a contractor to get a bid.

I'm coming to a bit of a crossroads here - I'm considering self-managing my rental properties (or my wife rather). She's been pushing to work from home lately and the properties are generating enough in management fees (between placement and the 10% a month) to make it a possible option. It would be nice to have that money stay within the company.

You already answered your question. This is a personal decision, not a business decision. Happy wife, happy life. If it becomes too much for her, then you can always hire a company to take over. Do you have kids? Then it's a win-win. How much time it will take can be answered by your current management company. Most likely, the set up is the only full-time part.

Quote from @Mark Koontz:

Good evening, 

I am currently flipping a ~550 square foot house in a low income area. Population is ~50,000. Median household income ~$41,000. The house is a total gut with an entire new floorplan. I decided to go with a 2 bedroom layout which greatly reduced the living space. My thoughts behind this is with the location and buying power of buyers in the area, the bedroom count is more important than the extra living space. Also, 2 bed comps are a bit higher than the 1 bed comps. 

Does anyone have any insight on bedroom count vs living space in low income areas? 

Thanks in advance. 

2 bedrooms is a solid choice in this demographic.