All Forum Posts by: Matt Lyons

First and foremost: LOVE THE BP FAMILY AND PROGRAM! Just needed to say that… quick success story that might help to inspire another:

About 18 months ago I purchased a lake front lot outside Dallas TX. It was out in the middle of nowhere and had nothing on it, but I figured it was lakefront and the owner agreed to hold the note with 10% down so I figured WHY NOT, what better place to park $8k of my money. Plan was to develop it into a tiny home and Airbnb it…. Well life got busy and all I did was make my monthly payments of about $400 a month. I decided a couple of months back that I would try and sell it and hope to walk away with $20k in profit…. I closed today…. Net proceeds to me, after all was said and done: $45,924.45!!!! Doing nothing is also a decision and in this case not a bad one! In a side note: I have NEVER VISITED or stepped foot on this property and never met (in person) the previous owner or the new buyer…. Don’t let anyone tell you something can’t be done and don’t be afraid to pivot when you need to

Keep investing!

@Julien Bartolo

You don’t need a realtor BUT hire a lawyer to do all the paperwork. Cost will be $500-1000 total and then you are covered!

@Brooke Phun

Yes but two things to know/consider:

1. Beware of who manages it! I had a bad company manage mine: they charged too little to renters (always full but did not make what it should). They charged me too much to manage and they kept hitting me with overpriced repairs

2. Keep in mind appreciations. My deal was a place I owned and did STR through a management company for 6 months… in that time frame I made a total of $2,000 in profit (total not per month, total) BUT I did nothing and sold it for $95k more than I paid for it 6 months earlier!

So GO FOR IT just get the right management company (or manage yourself) and watch the biz!

@Kevin Lechuga

Buy a 2-4 unit as a primary home and put 3-5% down. Live in one unit for a year or two while renting the others out then move out of your unit and do it again and again… nothing wrong with putting a small amount down as a primary residence and then move on shortly after you meet primary criteria which is either 1 or 2 years or may vary per lending

@Brian Falcon

First often times people say “my business” when they may not actually have a business formed.

Secondly, you can absolutely own in your name and run expenses and income through a business. If you are a single person then it all passes through you anyway.

Another way to look at it: properties in your name are about the LENDING from a bank NOTHING MORE, it is not about how you recognize the income and expenses

@Terra Joa Yu

First ask yourself WHY you bought it? Long or short term win? Cash flow or appreciation?

After that here is where I see your issues:

If these are 3 bedroom places you should be at $2k per month based on stats in your town… so your rent is too low if three bedroom units.

Property management at $125 per month seems high if all they do is rent it when vacant. If you can self manage that puts $250 a month in your pocket. If you are fairly local (within 2 hours) it should be easy to self manage

And finally, repairs happen but usually it’s one time per fix and even if a slight bleed this month you will make it up over the long term.

Sorry one last thing: your rate is great don’t give up the property

@Maranda Tucker with all due respect: your husband is an idiot (I say that to make a point as I don’t know him)

If you are buying for cash flow and finding the right deals your outside regular income is not a factor as the property MAKES money and has value.

Next, to afford the property you don’t need ANY money.. there are three things every deal needs and if you can bring two of the three you can easily find the third:

Hustle/work

Deal

Cash

If you have the deal and are willing to run the property and do the work then it will be easy to fine 20% to put down from an investor

@Cindy Schneider

Depends on the area and tenant base but no matter what CHARGE MORE for a dog… I demand an additional $100-200 deposit and it’s non refundable then I charge an extra $25-50 a month

A dog WILL be an issue no matter what from barking to poop to damage so make sure you monetize this headache

@Erika Geoffrey

I LOVE SMALL TOWNS FOR CASH FLOW! I own over 70 rental doors all in small towns in IL, IA and MO.

Other than cash flow here are benefits to small town tenants:

Covid proof: I had not one tenant fall behind during Covid because those small towns kept humming along.

Recession proof: these small towns do not go the way of Wall Street or even the country as a whole, they are insulated from much of the ups and down

Better tenants: small town tenants don’t expect a lot, they seem to be happy with a decent place to live. In addition they can do MANY repairs on their own saving a landlord time and money

Lending: find a small town bank and they will likely invest in their area with better rates and programs to invest in these communities.

Competition: almost no one looks in small towns so less multiple offers

Better sellers: many sellers are families that inherited mom and dads home and just need to sell it. Often it is owned outright and more potential for owner held deals

ONLY NEGATIVE: appreciation is very minimal

Don’t delay but in small towns… just don’t tell anyone!

@John Warren I would push a little further west and go to smaller towns. Just west and southwest of aurora there are some great deals and good tenants as well