All Forum Posts by: Johnny Lau

I'm at a crossroads on what to do next, I get so much info from BP, BP podcasts and other podcasts. I read a lot online on what others are doing and the pros and cons of each choice. With so much information, it really has me mixed on what to look into next. I have a mix of local California SFRs and OOS turn keys (4). In the last year and a half, I bought 4 OOS SFRs (3 turn key and 1 off mls), all are doing good for cash-flow. 2 are in Birmingham, AL and 2 are in Detroit, I am actively looking for the next OOS SFR, the cash flow is hard to pass on.

My dilemna is should I go for the next level up and look into a medium size multi-fam (12-30 units maybe?) in the mid-west, join syndications that open up to much bigger deals, or continue OOS SFRs that cash flow? I like the idea of joining syndications and working with a group with a proven record. 

What would a fellow BPer do to scale up their portfolio? I am leaning towards more OOS SFR for adding cash flow (my comfort zone) and/or joining a syndication or two...sometimes too much information and researching is a curse lol

I bought 2 houses from AWB about a year ago, one house had a renter already living there and the other had one placed a few months after closing. So far, both have been paying on time and I feel fortunate for that. Sorry to hear about your difficulties with your renters, I am surprised both of you had problems with the PM placing unqualified tenants. I will be looking at my properties more closely when there is a turnover in the future and making sure they are qualified. 1st Choice Properties is usually pretty good at getting back to me when I have a question on my properties.

I found AWB through Real Wealth Network, they are one of the affiliates with RWN. I was looking for turn key houses and thought going through RWN was a safer route than going on my own when buying out of state. I am also looking for my next purchase, but not sure if I will buy another turn key.

My property manager originally thought it would cost me 500-800 to remove the tree, this was before he went to the site. Several tree trimmers went to site with him the next day and said they could not remove it with their own equipment. I guess it took heavy equipment and a dumpster to haul it out. One guy finally had the equipment to do the work.  I’m guessing the tree was 40-50 feet from the pictures and looked pretty heavy and thick, actually 2 trees fell. But yeah, 3500.00 is a lot, original quote was 4300.00 but we talked it down a bit.

I’m curious what other people pay for a large tree removal?

Same thing happened to my OOS rental in Birmingham, Alabama this past week. A large tree from my neighbor fell onto my property and on top of my rental, I am in the process of getting an estimate for the roof, but the pictures after the tree was removed looked like there wasn't too much damage, got lucky there. But to have the tree removed cost 3,500.00! My property manager said it is seen as an Act of God and I could not go after the neighbors to pay for it. My insurance carrier confirmed the same. I know how you feel, I was very surprised the hear that a tree falling from a neighbor and damaging my house is my responsibility. I asked my property manager to try to contact the owner and ask if they will help pay half, but I will be very surprised if they agree to compensate me at all.

It depends on the situation. On properties bought out of state, I always get an inspection. On a recent buy in the still hot Bay Area, the property was bought without an inspection and a 10 day close all cash. You could tell there were a lot of serious buyers at the open house, some brought their contractors to estimate the build and some were contractors themselves, their trucks were parked outside. You needed your offer to stand out and to be creative to have a chance at this house.

Out of state cannot be beat, I have invested in California up until the year 2013 with still cash flowing properties. Looked out of state and the numbers are very good and various markets pay the 1-2% rule. I am going all out on out of state and looking for more.

Most recent house bought in Michigan:

3/2 SFR 1400 sq ft, 56,000 all cash, about 5k for repairs, 1050/mo rent, so it's between 1-2% rule. Locals are finding even better deals buying in the 20-40k range, but they have the advantage of being there physically and knowing the areas street to street.

There are plenty of posts on this website detailing their deals. I am using a PM that I have a relationship with and they are my best eyes on the ground, they visit the properties that I am looking at. I buy turnkeys at first then go out on my own and look for properties that need a little fixing up in good neighborhoods. I have done the same thing in Alabama as well, next if probably Illinois and/or Ohio.

Nowhere can you find these kind of deals close by to the Bayarea or hours away. This if if you are into cash flow, other markets have less cash flow but better appreciation, like Florida and parts of Texas. I look for cash flow myself, and multis have even better numbers.

There are about plenty of 1-2% markets that cash flow that I am researching for the next, but I am concentrating on about 3-4 markets.

@Dustin Burke

I’ve been to some multiple level marketing meet ups and the atmosphere I experienced was very concerning, way too much enthusiasm and excitement. Very cult-like and I decided it was not for me. People become sheep and just follow whatever drivel is being shoveled. Just go online and google any of these types of companies, the truth comes out.

Funny how the ones who buy into these companies are the most defensive....red flag here. Don’t drink the Cool-aid. Lol

@Colin Sweeney

I have them go to my bank and deposit directly into my account. It’s pretty simple and they can go to any BofA branch. I’ve had no problems for 12 years plus so far.

@Keith Gilbert

For me, it’s a no brainer, money goes so much farther if you invest out of state. I would sell and buy multiple houses out of state all cash. Or you can buy more with leverage and buy multi families or a nice size apartment building.

I’ve done my share of investing in California and now I am all in on out of state properties. I’m looking to sell a California house or two to maximize my cash flow out of state.