All Forum Posts by: Scott R.

My best experience was purchasing a home in KC and working with a Section 8 realtor to get a tenant in. I had literally zero issues or major repairs in 7 years. Rent always paid on time, no complaints, and few repairs. It was in a B area

Nightmare was buying a place in a warzone in Northern Las Vegas for 35k. I was able to cash flow it for about $300 a month but I paid for it w/ the amount of damages sustained by the tenants. The VMR was much higher than I anticipated  to the point that my cashflow was suddenly disappearing.  I just sold the place (after having to do $6k of repairs) and Im currently in the middle of a 1031. 

Im on the fence about doing these investments again. I'm now focusing on multi-units to scale up my portfolio. 

 Correct. "Each of us have to figure out which type of investment will work for us." so I want to listen to folks that haven't had success investing in $30k properties. Sure, you can make money from them. However, there are also horror stories where investors wont want to touch them anymore. I want to know why. I'm glad you've had a good experience, but let's hear them all and not discourage those investors from posting here. 

For example, I've made a lot of money flipping. I've also lost a lot of money flipping.  I'm sure people here want to know the risks associated with my flips and why I lost money. Just because I've made money, doesn't mean there isn't a  darkside that people should know about. It's not about being a naysayer. It's about openness and being transparent about our experiences. 

 He should listen to people from all sides of the fence. Speaking to people who have had bad experiences is valuable so others can learn from their lessons. These types of investments arent for everybody so I hope we can learn from everybody here. 

Dont accept the partial payment if you are trying to evict.

Im getting out of the Vegas market and moving to Az, Indy, or Colorado Springs.  I purchased some condos when they were going for 45 to 55k and rents were about $800 to $900. While the rents have stayed the same, the prices of these condos have now doubled. Just not worth it for a new buyer anymore. Im about to do a 1031 and I was looking at 4plexes in the area but they're all in pretty bad areas and in need of a lot of updating and repairs. 

I wouldnt purchase a 4plex here. If I were to buy again in Vegas, Id maybe pick up something by UNLV (Not the stadium). That's just me though. 

I can recommend a few good realtors there, but if you are looking for a 4-plex, Id look elsewhere. They are all in C/D areas with high turnover. The buildings are usually not in good shape since theyre older and not really building any new ones since most building taking  places are lower cost apartment complexes.  Im looking in Bakersfield and AZ right now for 4plexes.  

What sort of set up do you have in mind? It's going to be hard to find somebody to cover the down payment for only a small % back because they can take that down payment and own 100% of another property. 

The listings I'm looking at are calculating the CAP rate with "$0" cost for VMR and it's inflating the rate to a more desirable number.

1. Is this common for sellers to do?

2. Should I ask the seller for a breakdown of all repairs/maintenance from the last 24 months and use that as an average when caclulating what I think the CAP rate should be?

3.Ketchup on a hot dog: Yes or No

Thanks

Can you rerun the analysis with a 4.5 percent interest rate? Your assumption of 4 isn't realistic and is making the numbers overly optimistic. 

Also, let's assume a more realistic 25% down payment. 

Numbers don't seem to add up for me.....maybe I'm missing something here but my spidey sense is tingling.