All Forum Posts by: Shane Craig

 No luck the rents are are pretty much maxed out in this area.

I'm writing this post to get everyones opinions on a deal I'm considering.

All of my previous deals I have purchased were for cashflow. This deal I'm considering has minimal cashflow( 1K-2K a month) but has a high equity potential (500K). 

Deal break down: 17 houses ( 3bedrooms/ 1 baths) that have been maintained very well by the same owners all within in a mile radius. Each house rents for $750-800 a month. The seller will sell the homes for $1,275,000( $75,000 a house). I'm a realtor and I know the market well each house is worth 105-110K. Also the seller has sold two homes for $105K each over the last two years. 

This will be my biggest purchase and I'm worried on the low cash flow. 

What are your opinions on cash flow vs equity ?

 It might cash flow some not enough for me. But with that type of investment I need more cash flow to cover expenses, repairs, and debt.

 I didn't. I bought three single family homes and a commercial space instead. I might revisit them in the spring.

The numbers are close with not alot of wiggle room. I been so use to cash flow it's hard to buy a deal with with little to no cash flow.

Also this deal will be my biggest purchase to date. I have about 1.5 million in real estate debt this would take me to 4 million and I have to process that also. I'm just playing worse case scenarios in mind . 

In the past I would only buy rentals that had great cash flow. In my area it's relatively easy to get single family homes close to the 2% rule and apartments at the 1% rule( C class properties).  I have many homes and apartments that meet this criteria however I have been given the opportunity to buy a large portfolio of 38 Apartments ( two buildings both are B - A-class ) through owner financing ( $2,500,000, $200K down, 5% interest, and 20 year loan). To be honest I doubt a bank would let me borrow that much money or they would want more money down.  Both of buildings are fully occupied and they are in very good condition however this deal offers low cash flow and is at the 1% rule with little wiggle room.  This purchase would be a long term investment and I would be focusing on leverage and debt pay down not cash flow per say.

I'm 34 and have 30 doors right now that do cash flow. I feel like this a unique opportunity or maybe I'm crazy.

Tell me what you think. 

On Easter Sunday I had a tenant call me and tell me that state troopers were in the parking lot talking to another tenant.

I followed up with the tenant who was talking to the police and heard nothing. The next day the tenant deleted his Facebook and still refused to communicate with me.

The next morning I received a call from the tenants parents asking to go in the apartment and get their sons cat and a few items.

Finally the tennant called me and told me is was ok for their parent to get the cat and a few items( tv and bedroom suit).

The tenant also gave me a 30 day notice when we spoke.

He was super vague and told me he was moving to Florida but would be back to get his stuff.

I honestly don’t think I will see him again and I’m wanting to know when I can go in his unit and start cleaning it out.

I purchased a commercial/ mix used building(Sq 3500)( 2 commercial spaces and one large apartment on the second floor) last year for 65,000. I was told the building appraised for 110K back in 2013 in the same condition in which I bought it( it was a wreck and wasn't producing any cash flow at all).

Immediately after I bought it I renovated everything upstairs( electrical, plumbing, floors, removed plaster , drywall, added insulation, and ceilings) on the second floor. I took the second floor which was outdated space and made it 2 super nice apartments that have tenants now and are renting for $650 a month each. I found a tenant down stairs in the large commercial space and it rents for $500 a month. The smaller commercial space I completely renovated and I'm using as my office and it rents out for $500 a month to my business. 

I dumped about 60k into the building altogether and now it's grossing 2300 in rents each month.  I know it has gained value but how much?

I'm a real estate agent understand how appraisals work for residential properties( comparable sales)but I'm curios to see how this appraisal will work for a commercial property. Hopefully they use income approach and not comparable sales because their are multiple buildings near me that are similar in size but not in condition or cash flow. If they only use comparable sales I will be lucky to get 125K but I'm hoping to get 160-170K( or more).

What are your thoughts and opinions?

@Nathan Gesner

Any home can be packed with crap. I just hope if I lower the sq ft it gives them less space to fill it up. 

As you scroll through fackbook or other sites you see various life hacks about cooking, landscaping, etc. I want this post to be about landlord hacks( what are some simple tricks you use to make your life easier as a landlord). 

1. I only use deadbolt locks on doors ( and  non locking handle) because it prevents tenants from locking themselves out. 

2. I buy a years worth of air filter for a property because the tenant will forget to buy the air filters and change them. 

3. I only buy 2br/1ba houses to lower the chance of hoarding and stairs. 

I'm interested in what you