All Forum Posts by: RJ Emmett

@Ali Boone  I've been talking to two different companies in Memphis and Dallas.  They bring everything.  I use the term "turn-key" because I bring the risk/responsibility and they bring the opportunity.  Can you tell me which companies you've used in the past?  

Any horror/success stories with these companies?

Hello, The housing market in my local market is pretty hot right now and finding an investment property has been a challenge. So, I have been looking in other areas of the country (USA). I have been talking with a turn-key wholesaler who brings "everything". Investment, lender, contractor, property manager, etc. Pretty much sign off on the lending and you have an investment. My fear is I sign paper on a property that doesn't exist, the contractor charges $50,000 in rehab charges on a property that didn't need anything. Or the property manager has a history of stealing client rents to support her drug habit. How do you vet the people you need helping you when you're hundreds or even thousands of miles away?

Nice Robert!!!  Way to go! 

I do get the idea now.  Thanks Cody!!

@Cody L.  Can you explain what B, C & B+ type areas are?  I can't seem to find the definitions on the BP website.  I'm assuming like school letter grades that B is better than a C and B+ is better than a B.  Is there a formula for what makes a B, a B and what makes a C a C?

$60K a month for $4m??  Nicely done.  

I'd be happy to get at least 1 good cash flow deal done in the next 6 months.  (My Goal is 2 by the end of this year).

OK. I think I'm confusing the 1% with the GRM. I'll reread your post a little later. (Gotta still pay the bills using my non-REI day job).

I would say get it 100% rent ready, THEN advertise it.  You could generate some excitement about it, by marketing as a "Coming Soon", but don't show it or let them inside until it's 100% ready.  

You might also consider raising your rent too.  Yes, I said Raise it.  You said you had the lowest rent in town.  So, some might think, "The rent is lower than the others and everything looks new.  - What's wrong with it?"  Check out the BP rent analysis tools to set a fair market price.

IF you're still having issues renting it after you've finished the rehab you might try various renter incentives. These have worked for me in the past.

Splitting the security deposit over a few months.

1/2 month free rent.

Free U-haul truck rental.

Tickets to a sporting event.

Good luck - The whole BP community is cheering you on!!

So, I see what you're saying and the 1% rule looks great on paper. However, where I'm at in the Portland Oregon area I have 2 SF rental homes and they don't command that kind of rent. One of my properties is a 6.4 GRM and the other is a 7.2. I get it, it takes practice and the more you do it the better you'll be at spotting the deals, but:

How often are you coming across a unit that falls within 1%?  

Are we talking BRRRR, Forclosures, or just REALLY good negotiating skills?

Thanks Cody.  BING!  light goes on.  Thanks for teaching/sharing.

I was looking at the www.rmls.com RMLS number: 17009273 property. Cute little duplex, that didn't look like it needed a bunch of work. The guy that owns it lives in one side and rents the other. the listing states he rents for $1200, but that he also lives in one side. So, My guess is his actual GRM is really 15.62 and not 31. (2 x $1200 x 12 mo. = $28,800 / 449900 = 15.62). OR he's trying to sell just one side. OR he made a math mistake in the listing.

Comps in the area figure the place rents for $1500/unit. So that would put the GRM at 12.5.

Thank you for your clear explaination.  I'm going to move on and keep practicing.

Oh and sorry if this post is already answered somewhere else.  I couldn't find it.