All Forum Posts by: Isaac Barrow

Find The Seller is a gold mine. We have used to it with some success for over 50 houses, whether it be tax sale houses, abandoned homes, or homes where we just wanted a direct link to the seller. It only costs $9.99, and the data is incredible. They are able to find accurate phone numbers, addresses, vehicles, jobs, and relatives, as well. 

We find wholesalers through Craigslist, Bigger Pockets, and meetups (I suggest utilizing meetup.com). We have networked with lots of wholesalers by going to these monthly meetups, looking at FSBOs on Craigslist, or even Zillow (a lot of the time, homeowners aren't posting there, it's often wholesalers). 

I would say bad to develop a personal relationship, but it's good for business for them to have a good relationship with you, and trust you. All our tenants have a good relationship with me and our vendors, but it doesn't delve into it being a personal relationship, and they have to know that you are not there to be your friend. It's just like managing any business and keeping your employees in line. 

Spent a couple years doing restaurant/customer service management, had a really strong foundation with my family business and it didn't feel like a huge leap. I was already doing it part time for about 6 months before I jumped in full time

For houses with those price points, my worry would be what kind of tenant you're going to get, as well as of course, the area. Turnover from tenant to tenant will be consistent, and getting tenants to pay for a B/C class rental is hard enough, but will likely be even harder in those low income areas. We've bought a couple houses for lower price points, but those deals were fairly exceptional, as they were located very well, and weren't what I would call low income areas. We wouldn't have touched them otherwise. I bought a property in August for $19k, and we put about $22k into it, and it rents for $650, could probably rent for $700-725. Renting it out will never be a problem because of where it's located. We have several people who live on that block who have been waiting for an investor to fix it up, and when we have any vacancy there, we have a wait list. 

We've looked at tons of houses like the ones it looks like you're looking at. My worry would be class of tenant, but also the safety of the property when it goes through spells of vacancy, whether it be stolen mechanicals, stripped flooring, or exterior damage. Not to mention likelihood of depreciation. You can make some money doing that, as the numbers certainly sound good, but rentals get tricky, especially in low-income areas. Also as John mentioned, you're going to have a hard time selling it if it comes to that, and finding someone good to manage it. 

We usually add in an addendum stating tenant is responsible for all lawn care, and an addendum stating no unauthorized occupants will stay at the property.