All Forum Posts by: Nicholas A.

I am searching for wholesalers to connect with so I can get on their list and see what properties they have available.

I am looking in the Racine/Kenosha area in Wisconsin, primarily 2-4 unit buildings, although not strictly limited to that.

If you can help and would like to connect, please send me a message or reply here!

Quote from @Payton Haight:

Hi Nicholas, When you hear grades for properties, investors are usually referring to the neighborhood rather than the house itself. The grading system is subjective and unique for each market. As you mentioned in your post, A class B property to one investor might viewed as a class C property to another investor based on their own subjective criteria. 

In general, 'class A' neighborhoods are the most desirable areas - commonly associated characteristics are: homes in great condition, low crime, and a good choice of nearby amenities. Class D would essentially be the opposite of that. Class B and C would then be some mix between those. 

From your post, it sounds like you are trying to grade the condition of actual properties themselves rather than the neighborhood/location. Is that correct? If so, I am curious why are you looking to assign grades to the properties? Is it for tracking in an Excel file or something similar? I suppose you could establish criteria for a grading system for houses. Something like class A properties are in perfect condition and need no work. Class D properties would be a full gut, etc.

Payton I am more focused on the neighborhood and even the block, not so much the actual property itself. 

I am trying to find a rubric of sorts that I can use to determine the grade of a property. I seem to hear what people think is a B or C property actually varies. Somebody told me that each unit between 50-100k would be a good marker, with good rent growth.

Ultimately I want to be able to figure this out so I know how to grade each property and each area. I am currently looking at Racine, WI.

A tenant of mine has said the dryer stopped working. She sent me videos and it’s just not turning on when she is pressing the button to start a cycle.

I had her power cycle the dryer and check the breaker box to make sure it was getting power, check the door to make sure it was shut and basic things like that.

My question: is it worth it to send a repairman out to the dryer or should I just buy a new one for like 300 bucks? What about with washers? 

Quote from @Stephen Morales:

I would look into building targeted list using a some property software. 

Most of our users for example find success pulling pre-foreclosure leads, high equity and tax lien property list. I would go for 10,000 properties per month minimum that you can call on or have your VAs do it. 

Other than the other outbound ways you mentioned, you can invest a lot of time into creating your own site and doing SEO to drive traffic. You can do PPC ads for inbound leads or even PPL but that can be $150-500 for just a warm lead. 

how much do you pay your VAs? Where do you source them from?

I see people online who invest on a large scale into residential and single family real estate and I am wondering what criteria they choose to analyse deals.

What methods do they use? 

I’ve noticed that some real estate investors treat the entire U.S. as their market, rather than limiting themselves to a single city or region—often even bypassing their own local market altogether and resulting in buying properties across the country more quickly and in multiple different markets. 

From what I gather, they don't tie themselves emotionally or logistically to one location, which can significantly broaden their deal flow. Instead, they focus on key metrics that make a deal work—cash flow, GRM, cap rate, local landlord laws, etc. Once a market meets their investment criteria, they assemble the right team quickly and move forward when the numbers justify the deal.

This approach seems to dramatically increase the number of potential opportunities compared to being confined to a single market or two and will results in buying properties more rapidly in different markets across the country.

Curious to hear others’ thoughts:

Does anyone here invest this way? How has it worked for you?

I’m trying to gain a clearer understanding of a couple of key aspects related to property valuation and market rents.

While there are plenty of online resources and formulas that outline how to determine market rates in a given area or estimate a property's post-rehab appraisal (such as in a BRRR strategy), I don't believe the process is as straightforward as these guides suggest.

1. Accurately Assessing Market Rents
   1. How can I determine the true market rent for a property, particularly when the available rental data in the area is either outdated, incomplete, or not representative of my specific property?

   For example: If I search within a 0.5-mile radius, but the rental listings or recently leased properties differ significantly from mine in terms of condition, amenities, or layout, how can I still derive an accurate rental estimate?

2. Estimating Post-Rehab Rental and Sale Value
   2. How can I accurately predict what a property will rent or sell for after renovations, especially when comparable properties in the area do not closely match in terms of upgrades, size, or features?

   For example: If I look at recent sales or rental comps within a 0.5-mile radius, but the available properties differ significantly from mine in terms of condition, amenities, or layout, how can I still derive an accurate rental estimate? What methods can I use to refine my valuation?
   

I assume there’s a structured approach to answering these questions—one that goes beyond generic formulas and takes into account the nuances of a specific market. I’d love to hear insights on how to navigate these challenges effectively.

Quote from @Marcus Auerbach:

I suspect you have unrealistic expectations. It's 2025 and not 2010. Real estate is expensive, no matter where you look. You can trade more time or more risk for a slightly better price, but I would not recommend that, especially for a beginner. Actually the opposite, buy the best quality with the lowest risk you can afford.

Instead of finding better deals (unicorns) focus your energy on generating cash. The times we live in offer so many opportunities. That's the up side of 2025. And then buy real estate.

Seems like the deals that are worth it are hard to come by. What are some parameters that you would consider a good deal? I am not worried about the up front price, more so worried about the other numbers: cash on cash return, profit margin after taking into account other expenses like potential vacancy, maintnenace, mgmt.

How hard is it to find a property that meets good metrics? Where is the cutoff line of just throwing the money in an index fund instead? I want to be an investor, not a part time lowly paid property manager and handyman. 

Quote from @Michael Dumler:

@Nicholas A., it's challenging to answer your question without knowing your current experience in real estate investing. Do you already have a couple of deals under your belt, or are you a complete beginner looking for your first property to tackle? If it's the latter, I would advise reducing your target markets to only one specific location. You are spreading your time and energy too thin by trying to take on three separate markets. Moving forward, pick one area to focus on and hone your strategy to source deals from there. If you have REI experience and a few deals operating, how did you go about sourcing and acquiring those properties in the past?

Hey Michael,

Yes I have 2 deals under my belt so far. Chicagoland area, DuPage county. I have been a landlord since mid 2021. For those deals I used a realtor whos well known in the area and brought me some options, one was off market and one wasnt. He is now coming up dry. Which is why I am considering other markets.