All Forum Posts by: Miguel Del Mazo

Are there other numbers you can share? Overpaying by 1000 bucks on a property that costs 10k to make 500 dollars a month actual profit (not just rent minus mortgage) is totally fine. Overpaying 200k to get that same 500 dollars a month is... Not a good plan. 

Dang. Mr. Cumbie beat me to it.

Mixing one investment with another is confusing when there is such a fungible and transferable asset like dollars available. You probably wouldn't accept gold, stocks, art or trading cards (if only I still had my Magic: The gathering collection from the early 90s!), so don't treat bitcoin any differently. 

My advice is collect the rent in dollars, and then independently figure out how you want to invest those dollars. 

If you have to ask "am I being scammed", the answer is "I don't know, but it doesn't matter because I don't understand this investment enough to invest in it". 

Only invest in something when you completely understand how that thing will make money. If you can't see how all the pieces fit, either dig and learn more until you are satisfied or find a different opportunity to invest in. 

There is no shame in working hard, saving money and investing it in something simple when you "get it". The best investors in the world won't touch an investment that doesn't make sense to them. 

To more directly answer your question. You need to see his paperwork. Does he have legal title to the home he is building. Will he share his contractor's contact info? Can you see the house? What do the comparable house sell for? Keep asking questions. The part where he promises 30 percent return is sketchy to me. 

Is there a Macon meet up?

I'm born and raised in Atlanta (yes, we exist) now living in Buford and looking to get in to investing in Macon, but I'd love to connect with any existing community already there. 

I agree with running the numbers on what actually is and not what could be. Letting the old tenants know that there will be slow rent increases over the next couple of years is reasonable, but I would exempt the 87 year old. You'd be well within your rights to increase the rent for her over time, but I think you'll find that doing so won't feel good. It's gonna cost you money, but you'll sleep better at night.

You could potentially ask the seller to cut a deal on the purchase price if you agree to not raise the older tenant's rent. It's probably a safe bet that she has a special place in his heart. 

Way to go!

Alaska is beautiful, but I think it's safe to say you are a lot tougher than I am. Us Georgians get grumpy when it drops below 50 degrees. 

Thank you. 

I've taken your advice, and I think you're spot on. Using estimates as I can find them from Zillow or rentometer allows me to narrow into an area and then using actual rent data (and how quickly those rentals disappear) help confirm where my rent should be. 

Thanks again. 

I can 2nd (12th?) LVP but from the other side. Before my wife and I moved the family to Buford, GA, we wanted to rent for a year to see if more rural living appealed to us. The rental we found had LVT, and it looked great, held up well and (I came to find out) was relatively inexpensive to install.

I'd definitely recommend it, and we plan on using it in our BRRRRs. 

I've been lurking on the posts for a long while. I've been consuming BP podcasts and books avidly.

But... I feel like the missing piece to break my analysis paralysis is how to estimate rental income from a potential BRRRR property. Most places that Rentometer can analyze are bigger towns whereas in my area (Northeast Georgia), smaller towns seem to offer closer to the 1-2% rule properties. Rentometer has a hard time having enough comparable in those markets.

Zillow and Redfin might offer their estimate, but I have only a little faith in their educated guesses. 

Just watching my target areas and seeing what is available for rent on Zillow or Craigslist seems to show rents at about $0.8 to 1.0 x the square footage per month for a nice, but not fancy SFH. Does this seem like the best way to estimate rent for use in the BP rental calculator?

Thx to all the posters who've given their time to teach us so much.