All Forum Posts by: Account Closed

Welcome! Nice to see fellow GA investors!

Thank you for the input, @David Shapiro; really great tips I will keep in mind! I really like that messy car advice!

Thanks @Levi Vincent! This helps a lot, actually!

Which sort of resource do you guys/gals use to look up your tenant's credit score, rental histories, and past crimes/evictions? 

Also, any other things you've learned to screen for in your experiences? Any tips on finding "the best!" tenant? Any big red flags you've noticed pop up with people over and over? 

Last question, is the application fee typically supposed to cover the credit checks?

@Matt Hintzke I would indeed say that the property you linked would NOT be an ideal investment (at the listing price) based on those numbers. I tried doing a little research and everything I've found confirms what you said earlier. Your area is pricey. However, that doesnt mean that all hope is lost! I think the next step would be finding a compromise in location. Like @Jacqueline Cliff mentioned, the extra commute will be worth WAY more than putting your money in a bad prop. I would perhaps try and find a like-minded realtor and see if he/she can help you in the house hunt. They should know the area well, and have access to the MLS!

I think the "increasing rent to get any cash-flow" issue could be solved during your "due-diligence" process. The first, and arguably most important, part of finding properties that cashflow are finding deals! Keep looking until you find your deal, with numbers that will produce positive cashflow AFTER expenses and even factoring in prop management fees. That way you can always have them managed by someone else later, without taking a "good deal" and turning it into a liability.
You can always use the FHA in Spokane as well, that way you could potentially save even more of your capital, and use Other People's Money to build that equity and cashflow!

In my opinion, the less of your money you use, the better. I would go with the local MFR using the FHA. I'm planning on doing the same exact strategy (house hacking) once I get back to the States, because you will be able to pocket all of that money you WOULD be paying for rent, and put it towards future investments. This is feasible because the tenant renting the other unit in your duplex will be covering your mortgage payment and some expenses (again, assuming the numbers add up). You will basically be living for free, while potentially only sacrificing some commute time depending on where you find your deal.

I would recommend the FHA as a starting point. A 500k duplex down-payment will go from 100k, to just a $17500 down-payment!
I would also recommend Branden's "Book on Rental Property Investing." That guide, along with BP forums have been my Real Estate Bible as a newbie. Lots of great info, and it will really help you answer a LOT of questions you may have as a beginner. I know it helped me loads.

Im just starting, as you are, and my 5 and 10 year plan look a bit like this:

5 year goal: 15 units which produce at least $100/month in cashflow each ( or the equivalent). $1500/month in passive cashflow. I plan to accomplish this in a similar way you are, using multi family props.

10 year goal: own 50 units which produce at least $100/month in cashflow (or the equivalent). $5000/month in passive cashflow

Im not sure how much capital you have available, but a 2 year plan for 8k in cashflow (to me as a newbie) seems like quite a tough goal to achieve. 

Remember to aim high, though! go for 10x your goals and 3x your current salary if you want to retire based on cashflow from your assets. (one part of the x3 salary is for you to live on, another for investments, and another just in case)

Thanks for the input @Matthew Olszak!

This is awesome! Any rehab tips youd like to share?