All Forum Posts by: Ray G.

Nice work Chris, now i argue the same thing with myself regularly. I just end up doing the minimal it takes to rent it because as you've mentioned, the ROI is horrible and the people will not really take care of what you put your hard work into.

I focus rather on flooring that doesn't go bad, tile, good laminate.

Decent quality everything.. middle of the road brand name stuff that's good rental grade.

Then i renovate before selling.. that's where you'll get more bang for your buck, i just do not renovate for tenants unless something has gone wrong.  Because at the end of the day, they rented it for that price.

Also, one other thing, if your getting 100 less per month on an un-renovated unit, raise the rents to half that, pocket the money and use the rents to cover your next fix up.  Working well for me and i have quads and tri's in stockton as well.

Good luck!

@Levi Klein

Don't get me wrong, you won't go wrong doing it your way, but then your re-borrowing your money at a higher interest rate than free.  Instead use the capital as a down payment on a larger property or fully purchase a cash flowing property.  Then you basically have another investment paying off your amortized loan and an asset that's appreciating in value all at a cost of free.

Run the numbers and do a side by side comparison of a cash flowing new asset over the same time period and i can bet you'll see the difference.

Its an opportunity cost.  Take that money and buy a cash flowing property, use the cash flow to pay down your equity in your primary or save the cash and buy another property.  More income streams is the goal.

Hi Everyone,

Let me start off by saying thanks for reading this.  I'm looking for advice.

Situation:

I purchased a 4-unit property in a pretty bad area, didn't know how bad it was until over a year into the purchase, because of the headaches, i have decided to sell this property and do an exchange to get into a situation with less headache.

Numbers:

Purchased the property for 190k, putting 30% down ~60k with closing costs

In contract now to sell at 305k (amazing appreciation in the past 4 years).

-6% to pay to realtors ~18k

-closing costs, 2-3k 

has me around 285k for which i need to spend.

Scenario:

I am contemplating investing out of state (indianapolis) and buying some duplexes, tri's or quads. (buying for cash flow)

I'm a seasoned investor in Indianapolis and own many properties here already.

Likelihood is i will need to purchase properties within the 40-80k range and may have to do multiple deals in the short amount of time to get the full benefit of the 1031 without paying capital gains taxes.

I understand that i can do a mixture of cash purchases (having about 150k of equity mix of original funds and appreciation) and a mixture of loans (going to be needed to hit 285k total)

My questions:

Are there lenders that can help me with this situation?

Do i have my bases covered with the scenario listed above?

Can i use my 1031 exchange company to buy some properties in cash if necessary? Through Wholesalers etc?

Thanks again for reading and really look forward to your input.

Hi Kwame, I use Justin Capps for property management and he does a great job.  Just look him up in google.

@Mark Allen Also very interested in this sample.  Would very much appreciate a copy as well.

im with sam on this.. I like the diversified look of smaller multis.  May do some larger multis in the future if I find something that makes my gears turn.

The issues you mentioned sound small, just ask for a credit based on your assessment.  "As-is" just means the seller won't make changes.  Don't just let it go without trying to get a better basis price.  Then you can use some of the income you get from the property to fix when you need to in the future.  Deal with important stuff immediately.

The small things that add up are much easier to stomach when you get a better price because of it.  This is the reason i always use the inspection as a negotiation technique more than anything else.

I've been using Capps Realty.  Justin has been great managing my properties.  Just look up Justin Capps.

@Rich Gabrio

Rich, in the same boat as you.  What did you end up doing?