All Forum Posts by: Megan Miller

Thank you for sharing!

James Wise We are, no realtor currently. We've used LoopNet to find most of the properties. I've been reaching out to the listing agents who have also been surprisingly hard to get ahold of. I've requested PM recommendations from the one who did get back to me. Is your company currently taking on new clients?

Hi All! My husband and I are in Cleveland looking at investment properties. We're also trying to find a property management company but I have yet to find one that will pick up their phones or call me back. Anyone have a great property management company that services Cleveland, OH that they can recommend?? Thank you! Megan

Hi All,

I came across a property I found through a wholesaler at a local Real Estate Investor meeting, it's not on MLS. It's been rehabbed and is move in ready. Here are the details:

Purchase price: $17,000

2 Bed, 1 Bath, 760 sqft

Expected rent: $600-650  

Class C Neighborhood, turn-key, 10% property mgmt fees

Given the price, we'd be able to pay cash for it, so we'd have no financing expense. After taxes, prop mgmt, CapX, utilities, etc. it would cash flow $300+.

Being from CA, this price point almost seems too good to be true. This would also be our first out of state property as well. Any red flags I should be looking for here or does this sound like a good deal? 

Thanks for your input!

@Derek Daun

Hey Derek,

Here's our breakdown, we used the BP calculators when looking at the property. 

Monthly Rental Income: $1100 (on the higher end but we found great tenants in about 3 weeks at that rate and it was still before our first mortgage payment was due)

PITI: $510 with 20% down

Cap Ex & Repairs (8% each): $176

Utilities (water, garbage/sewer): $100ish

Vacancy (5%): $55

Net: $260/month (so not QUITE $300)

We also got some cash back towards closing from the sellers and some $$ towards the minimal repairs that it needed. Otherwise it was pretty turnkey. We are definitely looking for more like it!

Do you currently have properties in Oak Park?

Hi Jessica! My fiance and I are also relatively new investors in the Sacramento market. Just a quick background - we bought our principal residence in 2013 and purchased a cash flowing rental in Oak Park right off Broadway a few months ago (I know there are mixed feelings about this area but our $90k 2/1 home is cash flowing about $300/month so we felt it was worth it for us). We're currently looking for something similar to what you're looking for. 

I definitely get your frustrations with the lack of cash flow in Sac and understand your dilemma with feeling stuck and out of cash if you buy this property BUT if you can get that kind of deal on a property, especially in a highly desirable area, I think it is way too good of a deal to give up.

A lot of good suggestions mentioned - one I think is worth re-iterating is that if you find another good deal in the future, there WILL be a way to finance it. We've found there are so many sources for funding out there that if you have a good deal the money will likely follow - someone will want to partner with you, or find seller financing, or find a hard money lender who will lend up to 90%, pull out equity in your first home if you can afford it, if you have a retirement account from an old employer, you may be able to roll it to a self-directed IRA that you can use to invest in real estate, etc...

Another new one - have you considered renting out the second bedroom if you purchase your friend's house? It's something my fiance and I thought we would never want to do in our primary residence, but we're realizing that doing something like that for a relatively short term (1-2 yrs) could really get us closer to our real estate goals.

Hope that helps! Best of luck!

Thanks for organizing, but unfortunately I won't be able to make this one.

Welcome! My fiance and I are also relatively new to real estate investing. As a tax accountant, I share your sentiments about wanting something more than the 9-5+ daily grind. I definitely agree that the Meetups and local REIA meetings are a great source for info and networking - just found our first rental thanks to some networking at a meetup.

Best of luck to you, cheers!

Welcome!! My fiancé and I are also new investors in the sacramento area. Right now we're working on purchasing our first multiple family rental. I've found the articles and webcasts on BP incredibly helpful. Also we've already gained some valuable relationships through attending local real estate investment clubs - NorCal REIA and SacREIA. They both post their meetings on meetup.com if you're interested.

Cheers!

Derek, thanks for the info! I would also love to hear your feedback. Can't make the April class but would be interested in the next one if it's worthwhile.