All Forum Posts by: Samuel Coronado

On point number 5- 

I was just talking to a friend about that who invited me to be on the board of directors for an affordable housing nonprofit. She's based out of New Hampshire and called it the "Alabama of the Northeast," but with way less social programs. Now, there's not the most social programs in Alabama as is due to the conservative nature (minus the hubs of dying cities like Montgomery and Birmingham), so that was a big statement. lol. I've never had it be a factor in my investing plan, but people in NC (a more purple state) swear by it. Entire kingdoms are built on Section 8. I'm not sure how I feel about it. I'm not a fan of expanding government power in some nebulous hope it will allow my properties to keep cashflowing. It needs to come from the free markets. 

I have a goal of one commercial property a year, but this is more about getting at least something that's 5 multifamily units a year, but I'll take a look at non-multifams as well. My focus for multifamily right now is mobile home parks. I acquired my first one last year after almost 10 years of doing one offs. 

I really need help with the creative finance. The one motivated seller I found, I threw them an offer of $70k with conventional financing and was beat out by an all cash offer of $70k. This was a small 4 unit park where I could easily convert all the spots to TOHs vs POHs. Alas, it wasn't meant to be and I don't get into bidding wars. I diverted over to a 5 acre plot where I can put in a couple of tiny homes. 

I've never heard of this one. I am developing in north Alabama. I'll take a look at this, but probably going to skip it unless there is a live online version. 

Do not discount the initial security deposit. Take your time in vetting people. Meet in person, walk them out to the car and see how neat their car is on the sly. That's an indication of how clean they will keep your property. 

Quote from @Joe Hammel:

I'm pretty biased towards Metro Detroit for obvious reasons lol.

HOWEVER, I do personally make over $100k/yr cash flow from 16 properties here. All of which, I’ve purchased only within the last 4 years.

So I do practice what we preach, and it really freaking works.

Metro Detroit has what 99% of Real Estate Investors want. Couple hundred bucks a door monthly cash flow, double digit ROI, and yes the prices appreciate and you build equity.

There are 2 types of people who dog on Detroit..

1. People who don't actually own property in Detroit

2. People who did it wrong and weren't able to execute.

If you do it right, it’s statistically the best market in the country for cash flow.

I cash flow $100k a year off 23 doors and have built a ton of equity in a short amount of time.

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $150-$300/door (after all expenses and budgeting for maint, capex, vacancy)

Appreciation: 3-10%+ (has been double digit for a decade)

Location: C+, B-

These numbers are based on the "sweet spot" in Metro Detroit. These are largely in the suburbs and some markets within the city. You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases. Where these numbers are found, there is a very high rate of rent actually being paid.

We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, and mortgage industry National footprints. Ford, Rocket mortgage, Beaumont hospitals and more. All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.

The bad reputation of “Detroit” comes from OOS investors wanting sub $40,000, D class properties in poor condition, because they pencil out to 2-3% deals on paper. We don’t buy those.

We have found what works and repeat it as much as funds allow.

Detroit has the the highest rent to price ratio in the country…and we’ve found the perfect balance of price/location within the area.

Here is a picture of my portfolio...

 How hard is it to evict someone out there?

I am looking at building a duplex on a plot of land I acquired with some partners. I am wondering about the difference between the building a small multifamily vs building an SFH. When building an SFH, we had plans appraised and then went from there going from draw to draw based on phases the banks requested. When it was finished, we converted from construction financing to permanent financing and called it a day. Is this the same process for a duplex or quadplex or are there extra stipulations?

Justin Goode LGCW Construction 256 874 3933  or 

Clint Enfinger M&M Renovations would be great for this project. (256) 867-3332

It takes a certain personality to do it yourself and make a profit. I think it's more than possible, but you have to have a no-nonsense way about it. When a single mother has been going through a rough spot and falls behind, it is up to you to file her papers and have the sheriff escort them off. When a pipe bursts, it's up to you limit the damage and find contractors who can fix it in a timely measure. There's a few other stressors that go along with it. I think all of it is manageable but some people have lofty ideas and have been oversold the idea of "passive" income from companies like Rich Dad, BiggerPockets, etc. Self-managing takes a bit of the passiveness out, but once you get everything set up and develop the systems that work for you, then things can run very smoothly. Tenant selection and screening are great determining factors in this as well. Some tenants I have gone months without talking to and only talked to them because I haven't heard from them in a while (even though their payments come in electronically with no issue). Others want to talk to you all day for no reason or have a bunch of nitpicky ways. It takes a little bit of experience before you can get that intuition.

I currently self-manage 7 rentals.