All Forum Posts by: Patrick Watson

Thanks for that input, you have raised some good questions. With the limited tools I have available for checking occupancy in the area, it is low-ish. It is a rent heavy area, few homeowners as all the properties to be multi family. I am of the kind that if I can make it a great property, I can get clients. That is probably a naive thought on my part. I’ll have to dig deeper. 

Hi everyone, 

I'm a newb looking for some advice. I have come across a 12 unit property I believe I can get for under $150k in an older neighborhood, the building is also pretty old and in bad shape. I think i can get it back to a decent level of living for any potential clients for between $125k - $175. Let's just say I would be all in around $300k barring any major issues. It's 12 units! Rents in the area are $600 and up. From what I am seeing, this seems like a no brainer. There do not appear to be many investors in my area, else I would think this would already be snatched up just for the ARV alone.

What am I missing? Neighborhood is low crime, demographics for the area are mostly younger people with some college, many young couples in the neighborhood but not terribly close to schools. It is walking distance to restaurants and other entertainment. I am just leery of the deal that seems too good to be true. I know the rehab will take many months before I see the first tenant, still seems like a good deal though. I welcome your thoughts!

Hi Daniel, Good to hear there are others working in the area. I love Winchester! Need to learn the area better down there, seems like it has a lot of potential. Is there an REIA in this area? Thanks, Patrick

I’m a newb, but I have learned through research your rents should be at minimum 1% of costs. So if you have 290k in it, rock bottom minimum rent should be $2900. Ideally even more. There are a lot of variables in play with any deal, and in the very long you may still make money, but... if you find a better deal you can make money now. Financial independence is the goal, so either negotiate a bette price or move on.

Hi everyone, My name is Patrick Watson, I live in the panhandle of West Virginia. Ive lived in multiple areas of the country, most recently Maryland. Ive seen so many sweet deals over the years, passed on all of them. Not really fear that kept me away, just caution. I’m ready to throw caution to the wind now! Been wanting to invest for, geez, twenty years. Typical procrastinator. Had an entrepreneurial career, a family, went back to school to get a masters degree (in project management, so that’s helpful). Now I’m working as a project manager at one of the world’s largest auto manufacturers. I find myself hating my job and where I am in life. I think back to a deal I never pulled the trigger on many years ago, a rental. It would be paid off now and have enormous cash flow. I no longer want to pass up these opportunities. I have the ability to invest in a large farm area, Maryland, Virginia, West Virginia, Pennsylvania, and maybe even Ohio due to where I live. I’m at a point in life where I can quit my job (want to every day!) and dedicate all of my time and effort towards my business, Twinpoint. The name comes from my love of blacksmithing and the fact I have 2 sets of twins. It’s for those kids I have a stronger desire than ever for financial independence. Can you imagine 4 kids at one time in college? All wanting cars at the same time? In my current financial situation. That will be a burden, I have 8 years to get my situation straight! I plan to start with flips then move into buy and hold and be a landlord. I have actually held a few mobile homes in Alabama ( many years ago) but made little compared to the frustration, so that chased me away. I’ve been reading (thanks for all of the wonderful posts everyone!) and realize that being a landlord doesn’t have to be stressful. I am 46 and have a short timeline to get to success. I plan on using property management firms to manage my holdings and maximize my portfolio. My goal this year is to flip 4 houses, to build up my funds, then Use the money to start buying duplexes and triplexes on my area. I welcome any advice, as only a foolish man refuses wisdom from someone who has already traveled down the road I want to be on. Thanks! Patrick