All Forum Posts by: Nicholas Mann

@Dontrea Riser

Hey as other people mentioned here cashflow does depend on your market and what you want to make on your investment. I am currently looking to buy a multifamily property in my expensive market and the cashflow I'm seeing can be in the $400-$600 range. That being said the Cash On Cash ROI is pretty low due to the high downpayment I have to use. I believe it was in Brandon Turners book on rental property investing where he said he looks for at least $100 a month in cash flow and a 10-15% Cash on Cash ROI. Hope that helps

@John Neff

Some great books with real in depth detail are here on bigger pockets. I have recently read :

Rental Property Investing

Book on Flipping Houses

Book on estimating Rehab costs

90 Day Journal ( good to focus on goals)

Other good overall business mindset books and general personal development books are:

Any Tim Ferris’s book

Extreme Ownership

Unshakable (finance)

Work the system

Awaken the giant within

The millionaire fast lane

The E-Myth

10x rule

Next on my reading list is:

David Greene's BRRRR book

Long distance real estate investing

Landlording on autopilot

When I first started reading stuff I didn’t want to waste the time or money on books, what started as a small habit of maybe a few pages a week or so turned into about a book or 2 a month and a large library of books, definitely attribute my progress over the last few years to the books I’ve read!! Hope some of these help!

@Garreton Smith

I’m no expert in this space but my wife’s family does property management and they have rent stabilized units. As far as I know whatever the rent is for that unit will remain the same and small increases of 1% or so a year are common. So for example a typical unit in NYC that might rent for $3000 a month, could be rent stabilized at $800-$1000 (whatever it’s currently at) and the landlord cannot raise the rents above whatever the small % increase is. There are people who live in rent stabilized units for 40-50 years and have a current rent of $600-$700 when the average rent may be $3000. The only time you can somewhat increase the rent is with a tenant moving out (or dying of old age) and you doing a major renovation. Even then the rent only goes up a certain percentage of the renovation costs. Again I’m no expert I just know that rent stabilized is rough for owners of properties, do your own research on them and 1 unit in a building should not make or break the deal unless your really squeezing numbers. Good luck

@Chris Teti

Thanks for the response

I currently own a home with my sister and brother in law where I am 50% owner and they are 50%. We purchased the house about 5 years ago from my grandmother. I have since bought and moved into another house and they still live in the house we both own. There has been discussions since the beginning of one of us buying each other out but nothing seems to be happening anytime soon. Would it be possible for me to take a home equity line of credit on the house to help me purchase other investment properties. I’m sure it’s a unique situation but if anyone’s done anything similar any feedback would be greatly appreciated.

Thanks

@Nick B.

Hey Nick,

Depending on what price point and what returns you're looking for there are many cash-flowing areas with-in 3 hours of NYC. First off you could always look in the Bronx although you'd have to really understand the market to avoid certain war zone neighborhoods. Westchester is more expensive but you can still find potential deals in areas such as Mt.Vernon, Yonkers and white plains. Not the best returns but a good market none the less. Lastly about 2 hours away is Albany New York where average purchase price is under $200k and you can find cash flowing properties with good ROI.

Best of Luck

@Faysal Alam

Hey Faysal,

I am wondering why you would be still paying the $750 rent where your family rents now? Would that be a permanent thing? If you’re responsible for that 3rd bedroom they could eventually move into a 2 bedroom, if they are willing to do that. Seems like you should have discussions with your family if you plan on making an investment decision, especially if your going to be responsible for $750 a month for a place you don’t even own or live at.

Good luck

@Joe P.

Yeah sorry I guess I was just kind of explaining the house.

The question I’m trying to ask is (and I’m sure this depends on market) what types of material, upgrades, finishes do you put in your rentals? Do some rentals just require the bare minimum improvements to get it rented or do some

Investors think it’s wise to go a little above and beyond in hopes for a higher quality tenant And better rent?

Hello Everyone,

I was wondering what everyone’s thoughts/opinions were on rehabbing a rental. I recently renovated my grandmothers old home in hopes to rent it out. The house is a 3bd 1 bath home outdated to the early 60’s. I had my contractor basically fit the whole house, create an open concept for the whole first floor and put in a nice kitchen with granite countertops and new appliances. We added a half bath on the main floor as there was none and we also expanded the upstairs full bath and updated it. The house had outdated carpet throughout and luckily there we nice hardwood floors underneath which we had sanded and stained for about $3000. I’ve heard people say not to put hardwood floors in a rental because they take a lot of damage but it would have probably cost more to put in a new flooring. Anyway the house is basically brand new after about $40,000 renovation and we are hoping to rent to a higher end tenant as it should be one of the nicer rentals in the area. Most people own there homes in the neigborhood but there is a good rental market as a lot of big corporate jobs in the area.

Thanks for any input

@Michael Reilman @Greg Dickerson

Thank you guys both so much for your input.

I just walked through 3 properties today. All of them were 2 family type houses with potential to add another unit! The first 2 seemed pretty awkward layout wise but made sense from a numbers standpoint. The last house was the best house for tenant purposes and overall a good side by side 2 family house but seemed more difficult from a numbers (cashflow/ROI) perspective. Either way it's the first of many walkthroughs I'm sure.

Thanks a lot guys and best if luck

Nick Mann