All Forum Posts by: Keegan MacNichol

Find a good broker to introduce you to the market. They can start feeding you deals based on your criteria and you can begin to set expectations for yourself. Start learning to underwrite said deals so you know what you're looking at. Without knowing how to underwrite, you can't speak intelligently to investors/lenders etc, nor will you know which deals to pursue. 

It probably depends on your income, current debt, and type of loan you're applying for. You mention a construction budget but later a construction loan; do you not have the money to redevelop the property on hand? Might be tough to secure additional debt on a vacant property that doesn't produce income. How much will it take to redevelop the property? Once the property is stabilized/income producing refinancing to a traditional loan shouldn't be an issue though. Talk to local lenders and see what they can do for you. Might be that you get a short term bridge/construction loan and refi after the property is stabilized? 

Tony Marshall of Cinc Realty. He's an accomplished investor himself and great to work with. Highly recommend. 

I think Ned has the right idea. How far below market are your renters? I'm totally on board with keeping "set it and forget it" renters in place, but at a certain point you're incurring serious opportunity costs. 

For example, I have a tenant in place that is $25-$50 below market, but I'm cool with it because she is obsessively clean and her place looks like it is staged as opposed to occupied. If she was $100 below market, I don't care how easy she is, that rent is going up. If I had better scalability, I'd increase rent $25 every 12 months on the dot. I only have six, so I'm a bit more conservative; generally a $25 increase is an inconvenience but not something a tenant will move over. Still, I try to increase rents every 12-18mo. Granted, my apartments are in South Dakota, so this market probably commands a greater increase based on the current market. 

@Jonathan Harms Thanks! Have to agree with your PM about keeping rent stable based on my experience filling a few vacancies last summer. Hopefully its a temporary lull. PM me with any other questions about Rapid and we'll connect. 

@Alex Rodriguez I was referred to Wes last week and have spoken with him a few times. His map is great and he's been great to talk to as well. 

@James Rogers Thanks and best of luck to you as well!

@Alex Rodriguez Thanks! I plan on starting a DM campaign next month once I narrow in on my target market. I've reached out to a few realtors to help navigate the area for my first purchase, so we'll see how it goes over the next couple weeks. 

Hello All! 

I'm currently in the process of moving to Sacramento to invest in real estate full time. I hope to be a resident by January, but in the mean time try to visit the city at least once a week. I'm looking to expand my network and build a business around flips as well as buy/hold investments. Here's a bit about me: 

Background: After college I received a commission into the USAF, ultimately flying aboard B-1B bombers. During my career as an officer I participated in three deployments, supporting operations in Afghanistan, Iraq, and Syria, amassing over 1500 combat hours.  Although I appreciated my time in the military, particularly the opportunity to work with so many amazing people, I ultimately decided to separate after 8 years active duty in order to pursue other opportunities. 

Real Estate Experience:  While stationed in Rapid City SD, I purchased my first duplex in 2012, initially living in one side and renting out the other. I made substantial improvements to the property, including renovated bathrooms, flooring, kitchen, and a new roof. In 2014 I purchased my second duplex, and in 2016 I purchased my third. All three are currently self-managed and cash flow. 

Goals: 

Short-term goal: purchase my first property in the Sacramento Area. Potentially seeking a live in multi-family flip. (Cash Buyer)

Mid-term goal: Develop a business around flipping SFH's.

Long-term goal: Continue to invest in Buy/Hold properties and move into commercial apartments. 

Thanks for reading and I look forward to connecting with you!