All Forum Posts by: Matt Moore

First, I would recommend calling around to apartments and other PM companies in your area to find out what is common.  You might be able to browse Apartments.com or other listings and get a sense.  

If I own the property, I don't charge pet rent but charge a slightly higher pet fee.  As a property manager, creating a standard that establishes the trifecta of benefits and tension is good.  The trifecta is making the owner and property manager happy, compensating for the extra risk, issues, and potential repairs, and encouraging the resident to limit the number of pets and be sure they are not damaging the property.  While the fees no never "liked," they do encourage the best behavior.  We need to remember that our job as a PM is to protect and build the value and cash flow of the property for the owner. 

Matt

It depends on the specific area. In the last few days, there have been new flooding issues due to the amount of rain collecting into drainage streams, rivers, swamps, etc. In some cases, homes that are not in flood zones have flooded in areas that would have never been expected.  

The long-term impact won't be known for a while as investors, homeowners, insurance companies, and the like make changes in the coming months and years.

I believe that the Tampa Bay Area will continue to be a good market overall as the foundations are solid.  We might see new investors looking to take advantage and some pulling out. 

Looks like a great investment from a cash flow perspective.  

I was bit by the bug too. :) Keep reading and listening, and yes, doing it will be the most excellent teacher.  

In my opinion, be conservative when making your first buy.  Know what you are looking for and what your rehab budget needs to be, and stick to it.  Remember that you make your money on the buy, not in the rehab or flip.

What is the expected rent, and does it need to be rehabbed? If so, how much do you think the rehab will cost to get it rent ready.?

For me, 2- 4 plexus are, most of the time, a cash flow play, and therefore, the ARV is less important in the analysis. You have to keep in mind that a plex will never be valued the same as an SFH, and renovations may not have the same effect on the value as an SFH.

If renovations are not needed right now, I would work toward getting the rent to market for the as-is condition and then renovate each side when you have turnover.  With that in mind, I would save most, if not all of the cash flow until you have enough to do the renovation.   You could make exterior improvements while it is rented.  

Keep in mind that this is a rental, and renovations should be in line with a rental for the area and market.  

Matt

Hi Kyle

You are in the right place to put your learning in overdrive.  Many YouTube videos and books on the subject will help, too.

I found that practicing analyzing deals was very beneficial. I downloaded a few Excel BRRRR calculators but created my own because I wanted to understand every calculation, factor and lever to maximize my investment.

If you are going to buy from a wholesaler, it helps to have a relationship with a few in the area you are looking for.  They may give you a heads-up on deals before they are released to all.  Also, when using a wholesaler, I put a deposit in escrow so they knew I was serious and could pull the trigger quickly. Suitable investments don't last long, whether in the wholesale or retail market. 

Good Luck

Matt

Hadar

That is a great question.  In my opinion, the short answer is to use your cash and refinance it into a 'standard' loan if you are going to rent it or sell it when you are done.  A hard money loan is designed to be short-term, and you must refinance or sell anyway.  No point in giving up 11% interest and fees.  Additionally, you may find that the pressure of the hard money loan will cause you to go faster and make poor decisions, or life could happen, and you could be delayed in completing the rehab.  

By the way, I did exactly the above on my first and it paid off.  I was doing 80% of the rehab myself because it was my first one, and I broke my ankle about 75% through.  I couldn't do anything for more than three months.  A hard money loan would have created serious challenges for me.  

I ended up financing the home, and by the time I did, the market had appreciated, and the rehab added value. My loan was more than my total cost. 

Good Luck.

Matt

I would look for a real estate agent focusing on investment properties.  They would have contacts in the area that could help do an inspection.  Agents are not legally able to do inspections.  You could pay a broker to do a Broker Price Opinion, but that may not help you much.  If it were me, I would start with an agent and then look for an inspector who might do a "light" inspection for a fee.

Matt

Cash is king when it comes to buying homes in the wholesale market, and this rule also applies to many other scenarios. Remember that most of your profit is made on the purchase, meaning that you need to buy at a discount.  

If you don't have enough to buy with cash and will get a mortgage, I would focus on finding a good-value home with a solid CAP rate and Cash-on-Cash return that will appreciate and fit the most common rental size house in your area. Look for something that needs cosmetics work, such as new flooring, paint, cabinets, etc, as this will help build value and get the most rent. A 3/2 with a 1or2 car garage is an idea in my area. Be sure that the area is solid and not run down. These factors minimize your risk and ensure that you have an investment, not just a rental.

After some time of appreciation, you could refinance and get some money out to do the next deal. 

Good Luck