All Forum Posts by: Ryan Irwin

Quote from @Nicholas Minich:

Where is everyone finding properties to use this method on? The prices via MLS seem way too high. Any success stories elsewhere?

Agree 100% with making connections. Letting everyone know what you are looking for. In addition, don't count out the MLS entirely. One of my best BRRRRs was from the MLS. However, look at the properties that others are avoiding. Longer days on market, perhaps not listed correctly or some other reason.

Also, seek out foreclosures, FSBO, and properties going to auction.

Gotta dig for the deals!

Quote from @Carlos Gonzalez:

I’d love to hear from you all—what’s been the most valuable lesson you’ve learned in your real estate journey? Whether you’re flipping, buying rentals, or lending, let’s share some insights and help each other grow!

Looking forward to the discussion!

Great question @Carlos Gonzalez, so many lessons along the way.

If I was to narrow it down, while it's not sexy or surprising, I would say it's taking daily action.  Doing the boring but consistent small things daily is what I've found to bring results over time. Just some examples include making connections (like you said), reading, posting (like this on the BP forums), analyzing deals, keeping the books, etc.  

 Always learning!  

Quote from @Drew Ballard:

We all know the market is tough but there are great deals to be found, just have to look creatively for them. I'm interested to know if anyone else does any Small Town Investing?  There's more risk with this for sure, but a lot of potential upside. This also seems to be below the threshold of most lenders. 

We are considering doing BRRRR in a small Southern Town of 20-25,000 Residents. The market #'s aren't amazing but I grew up near the area and understand the market well. They recently commissioned a Grant Study that revealed they have a serious Rental Property Shortage and are unable to attract new jobs and industries that have been interested in the area due to this.

One doesn't seem worth it but a package deal of a couple at a time looks like a better deal.  There's a lot of risk here, but possible upside also.  If anyone has any experience with these markets would appreciate feedback, even if its "run."

 Great question @Drew Ballard.  I have a couple properties in a small town (pop ~25K) and have found that it's a great market.  Of course, there are some challenges.  One is like AJ said, sometimes national lenders can be a bit cautious, but I have found that if you have at least 25K population, they are good.  However, appraisals can be a bit more expensive and take longer due to the area, plus harder to find good comps.  

Another challenge I've found is that it can take a bit longer to find a tenant due to the lower population.  However, by holding out for a good one, I've also found like you said, rents are higher and the tenant seems to stick around longer. 

Finding good partners (contractors/handymen/prop managers) can be a bit of a challenge too due to the lower population. 

Appreciation isn't as high as a large metro, but like you said, what you lack there is gained in cash flow.  

Again, I've had good success and no market is not without challenges.  As with all markets, the key is to balance risk with reward.  

All the best! 

Quote from @Jamie Warcken:

How much do you automatically increase *your* rents every year? 

Agreed what has been said above, if you're not increasing your rents, not only are you likely losing money (with all other costs increasing) but you are doing your tenants a disservice as eventually, they are going to move and get hit with sticker shock realizing they can't afford what the current market rent/costs are.  

Speaking of, that is how I approach my rent increases.  I go out and see what the average market rents are for similar properties in the area.  Based on that, I present my tenants with what current market rents are, so they can understand and appreciate why the rent is increasing.   

Additionally, if I plan on doing any property improvement in the upcoming year, I disclose that as well.  This way, they are getting a fair deal, I'm not going underwater with my rents, plus they have expectations that this process will happen annually.  

Quote from @Mat Garcia:

Hey Mat, great question here and so much to unpack.

As an Iowan myself, I won't deny that pricing is better in the Midwest like @Drew Sygit mentioned.  However, that does not mean there isn't just as much risk.

Before we even talk about numbers (and the fact that a 100 year old house with a new roof is still going to have many repairs come up), I think the first question would be how much experience does your buddy have?  When it comes to long distance investing, your property manager is one of your essential team members and you certainly need to have an "A-player" in this position.  Even if your friend gives you a sweet deal on managing your property, it will cost you 10x if he doesn't have the experience or skills.  

Double the above risk if you don't have experience doing this yet.  While I'm not saying it's impossible, but if you haven't done a long distance deal yet, double the necessity of a pro property manager.  

Even if you have a great deal, without the proper infrastructure, it can go bad quickly.  

Great question @Bryce Langford.  I'll echo what @Andy Sabisch and @Bruce Woodruff said, plus add that there's a full rehab and a down to the studs rehab.  

While down to the studs can look more intimidating, the advantage there is a clean slate.  What I get leery about is knowing a project is a full rehab but the walls aren't open.  These houses often have a lot of unknown "demons" versus something that is fully open has less surprises and can actually be less of a project.  

We all know even cosmetics have surprises pop up too.  It's all about the numbers and managing risk vs reward.

Quote from @Kevin Sobilo:

Quote from @Ryan Irwin:

I appreciate that clarifying question @Kevin Sobilo.  

It is SSA for retirement versus SSI unfortunately. That being said, I wonder if the tenant would be able to apply for SSI based on the change in income and living circumstances?   

There are only very limited circumstances where someone can receive both SSA and SSI. So that would be unlikely. 

If you are interested in doing something like section 8 housing that is probably a more likely option but it could take a whole before they get approved.

 Appreciate the quick response and the help @Kevin Sobilo!

I appreciate that clarifying question @Kevin Sobilo.  

It is SSA for retirement versus SSI unfortunately. That being said, I wonder if the tenant would be able to apply for SSI based on the change in income and living circumstances?   

I have two tenants who are married and both are retired and on social security.  Unfortunately, one of the tenants health is not good and is currently in hospice.  They haven't been married for nine months (only seven months), so the standard SSA married survivor benefits aren't in place.  

They have been great tenants and I want to exhaust all the options to help them out.

My question is, has anyone seen any ways that the surviving spouse could receive some portion of their spouses SSI in this scenario (married less than nine months)?  Any other options for rent assistance/financial aid that might be available?  

Hey Chris, I think classes, masterminds and seminars are great (I have done them all myself).  I'm not familiar with the Academy you're asking about.  

That said, but have you read and absorbed the BRRRR book by David Greene?

If not, that would be the first thing I would do.  Once you have read, underlined, highlighted and taken notes on that book, then I would move on to finding additional resources and groups.

All the best!