All Forum Posts by: Robert Mouser

I know this is a broad question and answers could vary greatly based on many factors including geographical location....but try to answer if you can offer any insight.

Can profit/cash flow be made with new construction SFH rentals?

I am in the early stages of investigation but my initial reaction is no. Mr. Morris on utube has a video or 2 pimping the idea but some of the numbers he quotes just don't seem realistic to me.

I ask because I would like to acquire another SFH rental or 3 this year. I already own 2 empty lots and may acquire a 3rd that comes with a house I am trying to get with seller financing. These 3 empty lots are part of the lawns of the rentals now....empty land that could be generating cashflow?

All 3 lots are buildable with no existing utilities....zoned for SFHs

I was discussing houses with a coworker today. Turns out he owns a home that he just doesnt want anymore. He has rented it through a PM before and hasn't had a pleasant experience with tenant turnover and minor damages that erased the little profit he made.

Then he got to telling me he is thinking of trying to short sell it so I got curious if there might be a deal to be had.

From what I can tell he paid 87k for it....
He said he still owes around 72k and that houses near by have been selling in the 50s....although when I did a quick zillow search on my phone I saw similar houses listed in the 70s so I was a little confused why he thought he could short sell it. He did say however that he has spoken to a realtor who specializes in short sales but has not signed anything yet. So apparently that realtor thinks this property could go as a short sale I dunno.

Anywayyyyy....in talking to him he is just done with the property. He is in another house now with his family and does not have the $$$ nor the desire to handle both houses.

Are there any creative ways to work a deal that would prevent him from a short sale and at the same time get a deal on the property?
Or to make sure I'm on the A list when it short sells? lol

I believe it would rent for 750....but being he owes 72000 I dont see much of a deal but thought Id ask anyway.

My brain is stuck lol

Could a person use the BRRRR calculator in a seller finance situation with a balloon payment?

Would the BRRRR calculator give accurate info in that situation?

In the refinance section of the calculator you wouldn't be pulling money back out to reinvest (like the calc is intended) but to pay the balloon payment.... the numbers would work out the same ....no?

Sounds to me like you already know what you should do. But you came here to rally the troops and get upset with anyone who doesn't share your passion over some window blinds.

If it is that big of a deal to you....then fix it. 

Ask about the blinds yourself....

Put it in the contract....

Make your agent do their job.... thats the one thing that caught my eye your agent pretty much doesnt giveAF and told you to do it yourself. They wouldn't be my agent any longer if it were me. I recently had a PM do that to me. I informed them of multiple lease violations. They did nothing about it and even went so far as to explain to me how to handle it myself. Now I am dealing with an expensive turnover period.....Soon to be Ex-PM.

or all of the above....

You're really making it out to be more than necessary. If I understood correctly you haven't signed yet....

Put it in writing that either the blinds stay or the price drops $2k....done.

And don't use that agent any more.

Personally I would not want that kind of tenant turnover in my property unless it was me doing it. 

Which begs the question....if you feel your tenant is making enough profit from his activities to raise his rent....why not just put him out and AirBnB it yourself?

This sounds kind of like being the middle man between two seller financing deals....except its not selling its renting. 

He has placed himself between you and the AirBnB guests. He has no 'skin in the game' as they say.

UGH.....got her to leave voluntarily basically just by starting eviction process....but mannnnn the mess they left me :-(

Got the keys back Dec 1st

10000's of dead fleas...bedbugs and spiders

ruined 800sqft of carpet....and patches of the hardwood underneath

left behind 20-30 boxes of junk and cupboards full of food

bedroom walls are so disgusting with bedbug and spider residue I have no idea how they were living there

they did leave me a fridge thats in nice shape though ha

Let the clean up begin !   lol

I have a SFH that was rented to an older couple for the last 2 years. Apparently at some point their daughter came to 'visit' and never left.

The daughter also brought a cat with her and the house is now infested with fleas.

The couple went into a nursing home in September. Their son (who is POA) came from out of town and paid rent for October and November. He is using this time to attempt to clean the place up...gather his parents belongings and he paid for an exterminator whos been there 3 times so far. He is making some attempt at giving me back the house in good condition.

But back to my main question. The daughter was in an argument with her brother the other day and apparently is refusing to leave.

He has also had the utilities shut off so shes there with no utilities I think. (not sure if theyre actually off yet) This is in Northern Ohio so its plenty cold.

She is not on the lease....never has been. She's not suppose to even be there.

Do I have to formally evict her?

It seems like I should just be able to call the Sheriff and have her removed.

If I have to evict her do I have a case to make the parents pay for the eviction?  Since they allowed her to move in against the lease.

I am a complete newb to BP. I do own two 2 single family rentals with a 3rd on the way.

While I think I understand both sides in this thread....it seems to me that those who are saying appreciation is the only way to make real money have not planned/set up their cash flow in a sufficient manner to cover expenses.

I just tried the BP calculator for the first time....it does indeed have sections specifically for capex and other expenses. 

Cash flow....real cash flow....is left over money after covering all expenses including 'move out'. You do need to be bit of a psychic and attempt to predict the future though lol.  It is all about averages and playing odds. 

At least thats my understanding of it.

Like Austin said "if CapEx expenses make you not cash flow over time then you didn't correct math in analyzing your cash flow property."

In a good deal your property with both cash flow AND appreciate.
Finding and securing those kind of deals.... well thats another story lol