All Forum Posts by: Ziv Magen

Jocie Moore, if I understand correctly, you're assuming that "pouring" more money into the property naturally extends the ROI period - that's basically a reasonable assumption, unless you have a good verifiable reason to believe the work done will enable you to receive higher rent for it OR a higher price when selling it - in which case, you can capitalize post-reno and cycle the money into new property/investments etc. It's a bit of a gamble, though - both because your predictions have to be very close to reality, and because you never know what the market will do by the time you try to re-lease/sell.

I personally believe it all boils down to what you're going to do with those funds. If you've got a proposal/prediction that may substantiate in better yields going forward, definitely sell.

Happy to share our simplified version if you wish, Jordan. It has broad categories rather than specific terms, you may find it easily adjustable. PM me if you want a copy.

Fascinating thread, guys, thank you. We're strictly cash purchases at this stage, but looking to offer finance solutions to our clients, who are very interested in this - possibly through private lenders - so your viewpoints are highly appreciated.

Had a great read of the replies - lots of strategies and points of view there. I'd just add that, regardless of what you do, slowly and patiently explain your reasoning to the tenants, make them aware of your challenges and why X is the best you can offer - you're bound to have a better chance of cooperation this way, particularly if you're saying they're your best tenants - most likely reasonable folk, which lends this tactic an even better chance of yielding favourable results.

Matthew Cariello, if you're already going hands-off (meaning, you're going to use contractors like a PM or reno expert etc without handling the nitty gritty in person), don't limit yourself to your own 'hood - it's a big state/country/world out there, and good deals are everywhere ;)

Lots of great info in the replies, and you seem to have the profitability aspect of things covered - I'll just pipe in to say that a lot of it also depends on how hands-on you want to be and how diverse you feel like being. If you like to micro-manage, you can get better diversity and hedging from a few smaller investments - but if you're day-to-dailies are full of other business or personal activities, you'll be able to handle a smaller number of larger investments far more efficiently with the limited time you might have on hand.

Lots of sage advice there :) As always, I'll harp the "don't just look in your home county" tune - if your market's dried up temporarily, don't be afraid to look at other cities, states, countries or continents - you'll have to do DD on the providers more than on the actual properties in most cases, but it's just a different skill set - and affordability, as well as cashflow, may just amaze you if you set your sights a bit further than "around the block".

Great and encouraging story, thank you. :) The first year can be the roughest too - you obviously did some awesome work, before and after your purchase. Bravo.

Here's another quick tip, since Nik Parks already mentioned investing out of state - if you're going with cash, as opposed to finance, you can find far better returns out of state or abroad, in very safe and highly regulated environments. Once you get past the 2-3 property mark, you won't be hands-on managing in any case, I'm guessing - and it makes as much sense to outsource out of state (even more) as in it - if you don't mind delegating, you can make much higher returns when your selection is national or even global.