All Forum Posts by: N/A N/A

Basically I act as my own general contractor and sometimes subcontractor. I hire the concrete guys, framers, plumber, etc. This is quite a bit of work but when the property is appraised I am able to finance 100% of the cost of construction and have a new property.

One advantage of this is that as I am in control of the building process, thus I am in control of the quality of construction and the materials that are used. For example I use 35 year shingles, walls and trusses on 16" centers, concrete siding, copper plumbing, high quality faucets, etc.

My expenses typically average about 12% of rent, when including insurance and taxes it is about 25% (does not include mortgage). This has been fairly constant for the last 5 years and should remain fairly stable. I use annual leases so my occupancy rate is usually over 100% as the tenants usually move out before the lease is up.(explanation: I charge one months rent to break the lease and they have continue paying rent and utilities until the next tenant moves in)

I realize that many investors are able to purchase properties at a 70% discount, however they have not been available in my area. Hopefully this will change as I am always on the watch.

Again, thanks for the great website.

Hi,

My name is Tony from Marceline, Missouri. I have been using the resources on this website for over a year and thought it was time to join in. The property analysis tools are great.

I currently own 4 duplexes and one single family home and have been doing this for about 5 years. I build the units myself and the bank will finance the construction, so I basically have a minimum of 20% equity on new construction with limited repair requirement. I like this approach and wondered if anyone else used this same model and what experiences they have had.

Thanks.