All Forum Posts by: Nic Hill

@Nic Hill Looking at the numbers, the cash flow comes in pretty low without any maintenance or vacancy costs. If you add both of those factors in, you may be looking at a negative cash flow situation. There are investors out there who will buy properties with negative cash flow hoping to either raise rents in the future and/or sell in time with appreciation. 

Regarding the deal, it depends what your goals are and if you can hold on to a property with negative cash flow for a period of time. Personally, I usually buy properties intending to cash flow from the beginning. Though, it depends on the investor. Everyone has different standards of what they consider a deal or not. 

Hope that helps! 

Quote from @Nic Hill:

Afternoon all, 

I have a property I'm looking at in Florida and the numbers make sense (somewhat) Low purchase price, with high rent values. However, the land is leased at $576 per month, which apparently includes the property taxes for the year and increases 2-4% each year. Given the numbers below, would this still be considered an ideal investment? I know your COC return should be much higher, but ive also heard in BP podcast that if its a buy and hold for cash flow sometimes you will have to wait a couple years to break even due natural market appreciation. This would be my first investment. If anyone is willing to help me analyze this and what i may be missing i would much appreciate it. Definitely want to make sure im not making a bad investment, especially my first one.

Total cash needed is less than 50k

Passes 1% rule 

Fails 50% rule 

Cash flow is less than $150 and comes in at $137

ROI and Equity is -24% until year 3

Cap Rate - 7.4% 

COC - 3.4%

So it’s a mobile home?  While I’m sure money can be made, your “home” is a depreciating asset; whereas “real”  real estate is an appreciating asset.  

My personal suggestion is to stick to owning brick and mortar homes - which is to say one where you own the land and the house.  

Not being in control of the land brings all sorts of potential headaches… lot rent increases outside of your control; what if the seller decides to sell the land?  You are out of luck!  You’ll likely be moving your home 

But the  biggest argument is financial.  Mobile homes do not appreciate over time like real estate does.  That alone should be enough.  Banks also don’t recognize them the same way, so will not lend the same way on them.  For them it’s more like buying a car… another depreciating asset. 

all the best

Randy 

Quote from @Nic Hill:

Quote from @Dave Skow:

@Nic-  let me know if you would like soem referrals  for  loan  officers  and  what  area you  are  looking to target 

 Thank you @Dave Skow, 

Would absolutely love some referrals. Currently looking the CA market (i live on the central coat) been having my eye on Bakersfield. Not too far from me, about 2 hr drive, but defiantly some opportunity in the area. Looking for cash flow properties to start off with, then adjust accordingly as our portfolio begins to grow. 

 Hi Nic, i recognize your pic & did remember you were in Ca (best i could recall) - i was hoping to find the thread from before just to refresh my memory...but nope.  However, glad to hear the good news on the wife - having a partner, esp if you have a job aside from your investment plans as there's a lot of 'work' to do to pursue properties, get under contract, get to closing....then, the next phase comes!  I am glad to hear you say you plan to hold your findings - this is great so you can create cash-flow!  Rehab and resell is awesome in its own way- but there's no end to it if you want to have money in your pocket. 
Let me know if you have a question that is bugging you- However, this forum/community has a lot of good ideas they are willing to share as well!

On the note of having a group meeting, I am not sure how you plan to go about it, but I welcome you to listen in on a couple of our meetings through zoom.  Maybe you'll pick up an investing tip or two and see how we do our meetings around here!  
Go to our website (seen on my signature) - check out our calendar of meetings - you might find something of interest.
Furthermore, if you'd like to keep informed of our topics, go to our members page and sign up as a FREE MEMBER.  That way our topics will go to your InBox. 

Best wishes for your financial (and otherwise) Success!  And thanks for stopping by to say 'Thanks'.  You have a gratful heart, which is awesome in my book!

Blessings!

Cindy Carriger

Congrats !  I have a rule with my wife (partner) that any spouse can kill a potential deal if they don't like it as I run everything by her for her thoughts. Sometimes you get so excited about a deal the other half may make some good sense into what you are doing and make not be so excited. There is always another deal so you need to keep her on board and work as a team if you are going to make it last.

Quote from @Nic Hill:

Hello BP Community, 

After 3 long years I'm proud to announce that I finally got my wife on board to jump into RE fulltime. I know, it seems pretty funny and a little petty but like many of you on here know it's a fine balancing act we have to do when your spouse isn't on board 100%. 

I'm looking to build a team and network with professionals in the industry that inspire to reach the same financial goals. Contractors, RE Agents, Property Managers, Lenders etc. etc. 

Also, looking to join or create a local meetup group for twice, or once a month meeting. If you're interested, please connect and DM me. Would love to hear from you. 

 Welcome, glad your wife agrees. It's imprtant to do things correctly "out of the gate". You can get an idea of what is attainable here https://www.biggerpockets.com/...

Again, welcome and ask any questions you or your wife may have.

@Nic-  let me know if you would like soem referrals  for  loan  officers  and  what  area you  are  looking to target 

Quote from @Nic Hill:

Hello BP Community, 

After 3 long years I'm proud to announce that I finally got my wife on board to jump into RE fulltime. I know, it seems pretty funny and a little petty but like many of you on here know it's a fine balancing act we have to do when your spouse isn't on board 100%. 

I'm looking to build a team and network with professionals in the industry that inspire to reach the same financial goals. Contractors, RE Agents, Property Managers, Lenders etc. etc. 

Also, looking to join or create a local meetup group for twice, or once a month meeting. If you're interested, please connect and DM me. Would love to hear from you. 

 Action man!!!! YES you will go far in this industry.  How did you convince your loving spouse?