All Forum Posts by: JP Garcia

Ugh... sorry - responding on mobile device. What I meant to say was that the thoughts around the campfire are challenging the “all-in” number of 65k. I think it’d be valuable to add in some contingency to your analysis, and plan accordingly. What happens if it costs 80 instead of 65? Or what if they only rent for 650 instead of 950? Etc I’m a relative newbie on the real estate investment side, but in my professional life, I’ve seen a lot of project estimates go south. Just my $0.02 - hope you can build them for 50 and rent for 1200!

Michael Keller It seems that the thoughts

Does anyone have experience in Demopolis, AL?  

I have a cousin who is moving there soon, so I'm considering picking up a multi-fam to rent to her/others.  I know zero about the area.  Any insight would be really helpful!

At worst, if you have a vacant property - I may have a renter for you.

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Thanks for the tip regarding price differences, @Robert Leonard!  We've already felt the sting ;)  My wife is there this weekend on our 3rd house-hunting trip.  I'll be headed over there next week for a follow-up trip.

Regarding the rental market - yes, what you're saying seems to be the sentiment.  I've already prodded our realtor about investment properties, and she said the same thing.  I guess there is a lot of inventory in the market?  Seems that there are a lot more sellers willing to do a buy or lease.  Maybe that's the norm there, but just seems different to me.  

Hi Alec -

Thanks for the note - I'll keep you in mind.  We are, however, moving to Lafayette LA, not IN, so we'll probably have to pass on near-term opportunities in IN.  :)

-JP

I'm sure there are posts on this and I'm not searching under the correct terms, so apologies if this gets asked all the time.

Quick history:  I found the BP podcasts and website via "The Book on Rental Property Investing," which I downloaded a few months ago.  Prior to that, we had two condos that we lived in, then rented out, and eventually sold because cash flow wasn't good.  For our next deal, I am leveraging the tools on this website pretty hard.  

One way I use the calculators is to "reverse engineer" or "reverse analyze" deals. If you take a BRRRR for example, I use dummy data to see what price point I need to buy at to get the returns I want. Example scenario: There is a neighborhood of SFHs that are, on average, $150K. Rents for similar houses in the area go for $1500. To pull these rents, I think I need to do $15K of renovation. If I know this, I can back calculate, using the BP Tools, that I need to buy this place at $60K or $70K to get my cash flow target. NOTE: I haven't run this scenario, it's just for discussion.

Am I missing something by doing this?  I am still a newbie at the real estate investing game, so I can't identify reasons why this type of analysis could be bad (assuming that more in-depth analysis is completed when identifying actual buy targets).

Thanks in advance for your input and advice!

-JP

Thanks Hunter! Looking forward to learning more about the area. Are you doing SFH BRRRs right now?

Thanks Chad - very helpful insight!

Hi!  My family is considering a move to the Lafayette area, so I'm just trying to come up to speed on the area quickly.

With the university in town, and having heard a little about the economic depression due to falling oil prices, the place *seems* ripe for a good rental market.  Thoughts?

Thanks in advance for your insight :)

Also - quick question... is "voting" similar to "liking" on Facebook?