All Forum Posts by: Nick Halula

 No, he was telling me that this one will likely appreciate slowly over the next 10-15 years. And is going to appreciate a lot more than the other properties we have found; all others would be cash flowing about 100-200 a month. He said he thinks it’s a good compromise of blue collar working neighborhood, turn key(which he never does but it makes more sense for me being an investor from California), and in todays market still cash flowing positively. We have been looking for months and he said this is the best I could probably get if I wanna get into the market now. If not, I may be waiting a year or two to get in. He says at the end of the day it’s not a home run but it’s not a bad deal either. 

 Thanks for getting back to me, Ill definitely check out those threads! My agent and others have told me that this property is likely to appreciate more than a lot of the other properties we have checked out due to it being a single home, rather than a town home or similar houses we have seriously considered. But to how much it will appreciate, i'm not sure. Do you have any good resources to get a good analysis on how well an area is going to appreciate?

So taking out capex and vacancy out of the calculation. Renting the property at 1500/unit(which we think is realistic for the area), we would cash flow $815 a month. I plan to read through the threads you had mentioned but I figured it would make more sense to get something were its a good comprise to cash flow and appreciate. I'm just trying to do as much research as possible to get me in that sweet spot, and it seems that's where I'm struggling as a first time buyer. 

 TBH, I don't think its going to appreciate a lot over the next 10 years. But what I heard is that you should go after cash flow positive properties while the appreciation is the icing on the cake. I guess that begs the question of what is a good profit margin for it to be a good buy? I heard $500/month profit per door is ideal but I don't know how realistic that is at the time. My thought was that once interest rates drops, home prices are gonna go up, so wouldn't it be smarter to buy now and refi when possible? 

Thanks for the input. The duplex is turn key, everything is new for the most part, only big ticket expense we're expecting is a new HVAC in the next 3-5 years. Were keeping all our income till we hit a reserve we fill comfortable with before realizing any profit. In the mean time, were calculating 5% cap ex/month as an expense. 

What are some realistic vacancy rates you would expect for a class C, compared to an A or B?

Hey all, my brother and I hoping to purchase a property soon in Baltimore, MD soon but I was hoping to get some advice before hand. The current property I am serious about is a turn key 4 bed/2 bath duplex in a C neighborhood. I use an excel spread sheet to calculate my profit margins/expenses from one of my friends who is a seasoned investor. For this calculation, we account for a 3% vacancy/month, 5% cap ex/month, 7.63% interest rate, taxes, insurance, and a few other things. I am using conservative numbers everywhere possible just to assume the worst. The previous owner was renting each unit for 1300/month but did some repairs and renovations before listing this property and we now think we could rent for at least 1500/month. Renting each unit at 1300/month, we would profit 170/month (total), at 1500/unit- we'd take home 540/month, 1600/unit- we'd take home 722/month. 

I know this is a very difficult question and market to invest in but I was hoping to get some insight from the community on whether you think these are profit margins make it worth it to buy. The hope is that we could refinance in a few years and obviously take home more. We are doing our best to find others in the area and figure out profit margins on those properties, but they all seem to need a lot of work, and not much more profit margins. 

 Awesome, I just reached out and he said he will try to make it if he can! Can you send me some more information about the meet up in laurel? Or feel free to DM me and ill give you my number!

Also, my brother has a 4 year old kid who he has split custody with, so he has his child about 50% of the time. If we can get a property within an hour driving distance, he said he is more than willing to put a lot of his free time and effort into the property. Partially to get a more equal split ownership and also so we can cut the cost of a property manager. I don’t know a fair wage to his time and effort, I was hoping to get the communities thoughts on it! Maybe “pay” him close to what it would cost to hire someone to do the work, and instead of payments that’s how we could work towards getting even?

Greetings everyone,

I am Nicholas, a 28-year-old travel nurse embarking on a new chapter in San Diego for the foreseeable future. Despite being a first-time homebuyer, I am highly motivated individual looking to dive into the world of real estate. My brother, a safety science manager in Severna Park, MD, possesses a wealth of connections in the construction industry, aligning our interests in venturing into real estate investments. Given San Diego's challenging market, we are exploring opportunities for long-distance investing in the more affordable Maryland region.

I am bringing approximately $150k to the table, while my brother has $20k. I seek advice on establishing a fair system that will eventually lead us to a 50/50 split as equal partners. Considering my brother's hands-on expertise and willingness to contribute through repairs and sweat equity, similar to a property manager to an extent. But are there any other recommendations on how to achieve this equal partnership? 

Our target lies in the $300k-$400k range, ideally a property with potential for improvement, whether as a fixer-upper or through strategic additions like square footage, extra baths, rooms, or an ADU. I am prepared to make the upfront investment for renovations, with the goal of increasing the property's value, getting it reappraised, and refinanced when interest rates are favorable.

In preparation for this journey, I have educated myself through various resources, including books such as Rich Dad Poor Dad, The Book on Rental Property Investing, BRRRR, Long-Distance Real Estate Investing, Short-Term Rental/Long-Term Wealth, and The Book on Tax Strategies for the Savvy Real Estate Investor. I've also begun engaging with the Bigger Pockets forum and podcasts. I welcome any additional book recommendations or connections with experienced agents, lenders, or investors in this market. Hopefully we could create a mutually beneficial relationship!

Thank you in advance for your contributions to this vibrant community.

Best regards,

Nick

Thank you all for your amazing feedback. I really appreciate it!

Hi everyone, My names Nick and I'm a 27 year old nurse hoping to buy a property soon in the San Diego area. My goal is to own a few properties over the next 10 years or so and get a stream of passive income while gain equity on the properties. I have around 100k, I am able to put down. Growing up, my brothers and I did a lot of handyman working with renovating units because our parents owned 2 large apt complexes, totaling 45 units in Pittsburgh, PA. So I ideally, I'd like to buy my first property as a fixer upper here in SD where I could live and fix up, while I'm not working, all while utilizing a FHA loan. I'm also considering buying in an area where properties are cheaper and I could hire a property manager to run it, so I could save more money on a property.

I just finished reading Brandon Turner’s The Book on Rental Property Investing and Rich Dad Poor Dad. I feel like it gave me a lot of information but I still feel like I need to learn a lot more before buying. Does anyone have any advice on resources/things I should should read/learn next? I feel like there is just so much information out there that I am having analysis paralysis. So if anyone could please point me in a right direction of where I should focus my time and energy on learning, I would greatly appreciate it! Sorry for the lengthy post but hope to hear from someone. Thanks in advance!