All Forum Posts by: Neel Jain

@Alan Reza The South (am a big fan) is leading the way in almost all economic parameters.  

Having said that - AZ, TX, CO, NV, WA and UT are on top of my list.

And then there is NM, ND and MT that are pure oil-plays. 

But here is the thing, almost all of the data I have perused through BLS and Census points to places nowhere to be found on BP?!   Is it because of Trump-economy?  Has wealth finally found its way in forgotten places?  I very much think so!  Let us see.

I am on a similar path as yours - great work! 

You'd be surprised to know, but I am guessing you'd probably already know because of what you have been already doing - 'Unemployment' in both Indiana and Ohio increased from March, 2017 - Aug, 2018!   

Why do I write this? - because while I was narrowing down the States (narrowed down to 24 States?!!), MO, for some reason, did not even make the list (I looked at Unemployment, Construction, Manufacturing, Transportation, Profession, Business Services, Leisure and Educational Services % Changes)!  

Just my 2 cents...

@Kevin Sack, good luck!

Along with learning and researching, another yuuuge factor for OOSI is having 'boots on the ground'...perhaps the biggest factor.

(ARV * 0.7) - Repair Costs should be the purchase price.

So, $100,000 * 0.7 = $70,000

Repair Costs = $10,000

Purchase price = $70,000 - $10,000 = $60,000.

Why even pay $80k?

@Gary Waddle, you said you haven't looked at the property yet?!   Go look!!  Check it out first things first if you are int he same city!!  

Having said that, I would actually perform my internet research/analysis first and give it a personal ranking - let's say after you've researched online, you rank it at 6 on 10 where 1 means not buying and 10 means 100% buying.  I would then go to see the property.  This would do a lot of things: a) corroborate your analysis, b) tell you where you went wrong and c) you've actually seen the property in person!

Things will make more sense after seeing, researching etc. - to buy or not to buy, go for funding or not.  Ideally, the loan should be as low as possible when starting out.  Not only it creates greater cash flow, but helps in creating a good 'history' for bankers when they see you have managed a prior loan more cleanly.

@Luis Vaca, big names could eat into profits.  Having said that, it all depends.  Big name PMs know bulk of their commission goes to their big name company..I doubt they'd be as hungry as an independent.  But again, it all depends on the situation.

@Clayton Mobley, thank you.  I am at that stage of narrowing down my list of potential cities.  I have looked at a lot of data over the weekend, just don't know how to interpret it to prepare my list of cities (it has cities from all kinds of States).  All the economic numbers indicate the South leading the pack.  

I have a list of different States and Counties with the latest % changes but just don't know how do they translate into REI - whether is it a renter's market?, whether it is the right time? etc. And I think I hear you when you say, quote, "where you see numbers that meet your needs and then switch to focusing on people, let those choices pick the market for you.", unquote. 

But yes, people make everything.  

Thank you, Ali Boone. 

Idea is to drill 'spectacular service to the tenants' into my Property Manager's head!  Tenants' interests, comfort and safety will be paramount.  I will be looking for a property manager with similar thinking..

Hi, care to elaborate on Year 1), Year 1-3) and Year 5)?

Hi @Gary Waddle, as a noob, please allow me to throw my thoughts to help, as well as understand my own thought-process, because, if this property is in Carlsbad, NM based as your profile says, then it would be interesting (please feel free to PM for details):

• The numbers right off the bat look good and are worth digging in deeper ($119k for $2000 per month is great!!)
• How much loan are you taking will dictate a lot about your returns
• Like others in the thread said, $75k - $80k is a good offer depending on the property conditions
• Would you be willing to live in the area? if yes, get more serious about it, if no, would you recommend the area to someone you know?  Answers to these questions can help look at any vacancy rates
• What is the new construction about? Mall? School? Housing?  
• How do you think the neighborhood is going to look like 10 years from now?