All Forum Posts by: Samantha Smith

@Mark Honeycutt the 4 duplexes on Kings road are listed with Robie Graham at ERA Sarver and she let me know that they seller is willing to sell them individually for 70k each. This area of Kings, the 1600 block, is a little shady but it's nice on either side of these duplexes. I honestly think these duplexes have dragged down this block as they rent for only $500 or $550. Landlord allows the tenants to park wherever and put up sheets for curtains. This block could be turned around if someone did something with these duplexes. Also there is some vacant land between the duplexes not sure if the landlord owns these lots as well.

Both of you should know that the BAH has declined as of 2020 and major improvements have started to be made in on post housing here so it might get tough for landlords going forward.

My recommendation for this area is to buy ugly in Deridder or Rosepine, do a value add and try to sell when you PCS. Deridder and Rosepine are marketing heavily to fort Polk right now, and have better schools at least that's what people say, and people saying it is enough to have people buying there.

I started researching this market in May of 2019 and have made some headway on learning about prop managers and who has the deals. I sent both of you a colleague request.

I'd like to hear from people who have partnered on single family buy and hold deals. 

My understanding of buy and hold is that unless you're BRRRRing it's a long game. If you finance and put down 25% it can take you years of cashflow to make back your initial investment of down payment and closing costs before you actually start making money on it, not accounting for the equity paydown.

I have some potential deals in my market; I don't want to tie up all my money, but I do want to aquire more properties now so they can be paid off when I retire. So I have friends in mind who might have some cash laying around, but I'm not sure how to structure the deal to make it interesting to them.

I'm curious how people who have partnered on this type of deal have structured their deal to repay their partner or make it worth their partner's investment.

Do you give them all the cash flow for the first few years until you've paid them back plus a reasonable interest? Do you ask them to play the long game with you and wait 15 years before the cash starts flowing? Do you split maintenance/down payment/closing costs/expenses 50/50?

Any and all info is amazing!

Thanks!!

I'm a newbie so take this with a grain of salt but my first thought is: Have you asked him why he wants to sell? It could be deferred maintenance is adding up on him and he doesn't want to foot the bill to fix them. Also if he's held them a long time and has long term tenants they may not be up to date in terms of plumbing and electrical. 

i just bought my first SFR from a landlord who had it 26 years and you can tell she's been doing the bare minimum for maintenance and updating. For example there's no GCFI plugs and there's only one grounded outlet per room.

Yes, that's why I'm here! To look for recommendations. 

Thanks for any you might have! 😁

No, they want me to pay a roofer to come out and evaluate my roof and then take their suggestion as for replacement or repair and if I don't they will drop me.

Hello,

I just bought my first house because of Bigger Pockets! Our plan is to rehab it while we live here then move out after a year and keep it as a rental. Our insurance company is now threatening to drop us if we don't have a roofer come and evaluate our roof and take their recommendation for repairing or replacing it. The insurance inspector didn't even get on the roof and roof looks great from the ground, but they are saying the inspector found something with our roof that we must address. The previous owner has disclosed that the roof was replaced 2 years ago. I had other clients tell me this same thing happened to them with this insurance agency but I didn't think it would happen to us! Our home inspection did find the roof was "soft" and our contractor said it was thin ply wood and that he thinks it should last at least 5 years. We were planning on replacing it with a metal roof right before we sell it in about 5 years anyway. Metal roofs are popular here. Houses don't appreciate here so you have to force appreciation through upgrades.

Anyway does anyone have suggestions for an insurance company that won't drop us over the roof?? 

We aren't ready to spend that kind of money on the roof just yet as we want to focus on the inside so we can raise the rent. The previous owner was a landlord who rented it for $750 for the last 10 years. We want to turn a half bath into a whole and add a dishwasher to the kitchen. We want to up the rent to $900.

Thanks!

 You'll definitely have a higher cash on cash return if you don't have a mortgage. Good luck!

I should also mention that I would be doing a conventional investment loan for my first property. That's why I would like to make the purchase sooner rather than later, while I have been at my current job for almost four years and look like a stable borrower. I'm trying to move next year and more or may not be able to transfer with my current employer.

 Thanks Luther. If you buy in GA will this be your first deal or have you already been in real estate investing? How did you get comfortable with the idea of out of state investing? Even David Greene who wrote the book on out of state investing had local property first and had already been investing local for a few years before he went out of state.