All Forum Posts by: Michael Kay

@JMartin very excited!

When I click the registration button I get

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Being handy is super handy. Lots of great investors I know of have backgrounds in construction.

The key for someone in your position -- to stay out of your own way as you put it -- is to learn how to delegate. You can't do this all on your own after all. :)

@Gary Guidi, congrats. This is fantastic. Thanks for the referral to AIA. 

@Michael Masterson Fantastic! This is awesome. This is exactly what I want to do!

@Hans Christopher Struzyna!

I'm thinking of doing the same thing -- live-in flip with FHA-203k loan. If you feel comfortable, go ahead and shoot me a msg

Dude. 

You have a HUGE advantage compared to the rest of us schmucks. I have to do this Out of state but you live right in a prime rental market. STL is great for finding rental properties!

You know the area, you're in the area, you work as a PM -- put these advantages to use. You're set up for success! Even if you move away to SD, you know more than I do about STL and I have properties there.

I know you'll do great

@Gary Crawford

This is fantastic! I look forward to seeing you on the podcast someday. :) 

Eh, to be honest, all things being equal and assuming things don't get crazier, leave them alone. They're hard working people, many whom -- believe it or not -- pay taxes on their earnings. 

In the gamut of illegal things in a house of dudes, this is one of the more minor 'illegal' things

@Daniel Savage, yes, your research is correct. Cash flowing properties in expensive markets such as SF are not common, epic really. Most cash flowing markets are in the Mid West. Many costal cities are just too expensive no matter what unless you do a BRR type deal. The South-East US is an exception. 

This is where the Cap Rate's real value comes into play; it can be helpful but it isn't as useful as things like IRR or CoC returns for evaluating properties. The Cap Rate can tell you about a property's relative value to other properties in the area and can also tell you about the market as a whole. In general, lower cap rates are about value preservation, higher rates are about wealth creation.

Take a look at this tool I found: https://mapping.cbre.com/maps/caprate/app/ Click around and select Multifamily and type. What do you notice about costal cities and inland cities? How about the cap rates with different types of Tiers? Is there a market where cap rates don't change no matter what class of property?

I noticed you mentioned you're from Detroit. You have a unique advantage that most of us don't. You know that city. I certainly don't! :) Detroit has a lot of potential for investment but it's dicey. That home-court advantage you have is huge and you should absolutely put it to work for you.

If you're dead-set on California, one possibility you can look into is finding duplexes to rehab. They're pretty rare and many cities in the Bay area have rules about re-settling tenants during and after renovation.

Would you consider properties outside the Bay Area but within a couple hours drive?

@Saj Shah what's your strategy?