All Forum Posts by: Philip Hy

Everyone, thanks for the great advice. I hope you won't mind if I PM some of you to pick your brains about some of your feedback. The reason I mentioned C neighborhoods is because when I listen to the podcast, Josh and Brandon seem to mention that's how they started and over time they transitioned their portfolio to better neighborhoods. I would consider a C neighborhood a place that's not exactly a high crime area, but you wou

ldn't feel comfortable sending your wife at night to collect the rent.

Agree with @Jeff Wallenius and @Kevin Coggins about the stock market providing better cash flow, I'm in it for the long haul and my total returns are still better than what I could realistically expect in the stock market.

FYI, here is a screenshot of my most recent deal I've worked on.

Kevin Siedlecki and Kevin Coggins all great points. I try to load my spreadsheet models with PM fees and 1% of purchase price as estimated operating expenses and renovation costs...cash on cash is 3.5%. Much lower than what I'm hearing others get. However, my total ROI is about 20% when I accounted for appreciation and mortgage pay down, etc. When you say I should aim for 10% returns, you mean first year cash on cash? I hear the podcast hosts aim for at least $100 cash flow per deal...does seem razor thin though. Are you guys picking up deals from MLS, or wholesalers? My next step was perhaps picking up wholesale deals, hard money to renovate, refinance, repeat. Thanks for the feedback, just hearing what others are doing is a great help.

Sorry for all the typos! Typing on the iPhone.

Regarding the investors with +100 units, are they basically doing it buy buying cheaper properties (<$100k) in "c" and "d" properties and then handing off to a property manager? I've been buying in solid middle class "B" neighborhoods to avoid problem tenants. Zillow shows schools 5 or above. I'm buying for 150k and renting for about $1,400. Putting down 20%. After all expenses, PM fees, I'm getting about $130 cash flow. Learning a lot and investments seem solid, but process seems slow and running out of cash for 20% deposits. Is there anything you would do differently? Buy cheaper houses and let PM deal with problematic tenants? BRRR method seems to only work if you buy in worse neighborhoods?

Regarding the investors with +100 units, are they basically doing it buy buying cheaper properties (<$100k) in "c" and "d" properties and then handing off to a property manager? I've been buying in solid middle class "B" neighborhoods to avoid problem tenants. Zillow shows schools 5 or above. I'm buying for 150k and renting for about $1,400. Putting down 20%. After all expenses, PM fees, I'm getting about $130 cash flow. Learning a lot and investments seem solid, but process seems slow and running out of cash for 20% deposits. Is there anything you would do differently? Buy cheaper houses and let PM deal with problematic tenants? BRRR method seems to only work if you buy in worse neighborhoods?

@Stacey Moskwa on a whim I searched for other people that might have went to Cornell and glad I found a couple. I've been doing real estate for myself for the last year and so far have done three deals...so still a relative newbie but have learned tons and always happy to share.

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@Victor Omoniyi let me know if I can help in anyway. I graduated from Cornell with the Masters in Real Estate and took a lot of classes in Johnson. Unfortunately even a masters degree did little to prepare me to invest for myself and over the course of a year, I've done about 3 deals and you learn so much by doing it. I've also worked on some models and happy to share if you think it might help.

noted. I did realize I would have to pay for this service. @Manolo D. thanks for giving me a sense of cost. If anyone has suggestions for specific GC's or contractors in Fort Worth area, would be much appreciated. Thanks. 

Keep in mind the foundation issue specific to Texas and Oklahoma. Soil is mostly clay which causes settling if foundations are not frequently watered. Foundation repair companies make a killing here.