All Forum Posts by: Shane Sams

Made my first two offers last week and one got accepted today!

It's a 3 bedroom 1 bath home on a half acre.  It's already been flipped (work is pretty much done).

They wanted $74,500, and we made the deal at $66,000.  I do need to buy appliances, but other than that It shouldn't cost much.  Roof is in good shape and it has a new AC and Hot water heater.

I should be able to rent it out for $650 - $950.  Since this is my first time doing this, I'm giving myself a range.  

I'm putting 25% down so it should cashflow even on the low end.  Super safe investment property. 

It should appreciate well.  It's on a nice road with well kept houses.  There are a few new constructions a few houses down.

I also plan on adding a 2nd bathroom when we decide to sell it.  

The house has a large kitchen, we could easily take some of that space.  So that should add some solid value.

Either way I'm just PUMPED

My goal was to buy our first deal on a single family home for a rental property before the end of the year.  

Can't wait get it fixed up and read to rent in 2018!

It's entire value is based on it's monthly rent right?  Since mobile homes go down in value, its just whatever you can get to rent it?  Then maybe sell the lot later?

Maybe break it up... what is an average lot in that area worth?  What is the average rent for that much space?

 Thank you so much for your expertise Sam.  I appreciate you.  

So we bought our dream home last year and kept our old house (it was paid off) and turned it into a rental.

Had a GREAT first year as landlords!  No major problems other than a leaky pipe and some maintenance.  (bonus points for finding GREAT tenants your first try lol).

So we decided to start investing.  Start buying a few more single family homes that cash flow, let other people buy us property.  A beautiful thing!

After a few weeks of reading and listening to biggerpockets we decided to start looking around.

Well, took the scary plunge this morning of making serious offers on not one but TWO properties!

Not sure if they will get accepted, but just MAKING the offer seems like a huge WIN starting out!

Let the journey begin!

for sure, i have lots of cash so I just threw that number in.  I was mainly looking at the monthly stuff to make sure long term it is a good monthly investment with good cashflow.  What do you think would be a better estimate? 3k? 3500?

Here is the report:

The numbers for this deal

That's kinda what I was thinking too man.   Brick 3x2 leads out of the gate.  But I'm just afraid that it will be harder to rent though.  The other one has good natural light as well, and I think when I'm ready to sell out, throw in a bathroom and I add a bunch of value.  Should still be fairly easy to rent out too.  

If the brick's roof was good, it may be better of an opportunity.  I'm just worried about the neighbors scaring people off. 

OK, I have two homes.  A 3x2 brick house and a 3x1 vinyl house.  Both are similar in square footage and lot size.  Both are about $75K asking.

The 3x2 brick is in good shape and nice inside.  Already flipped. 

Notes

• It needs a new roof
• It's not in a neighborhood that is a good prospect for appreciation
  • Not a bad neighborhood or unsafe or anything, it's just older houses and stuff
• The neighbor has two big dogs that are outside on electric collars.  Kinda scary, will need to buy privacy fence
• The neighbors look fine, drive ok cars, but their porches are a bit junky

The 3x1 is also already flipped and in good shape.  

• Only 1 bathroom
• Vinyl, a little older but in great shape
• Does not not need a roof and has a new AC unit
• It is on a busy road, but it's in a much much nicer part of town.  There are some really nice houses near it, nothing too old or run down.  

I think a bathroom could be added to the 3x1 pretty easy (would lose a little kitchen) and really up the value of the home through improvements.

Not sure which would rent easier?  The 3x2 with sketchy neighbors, or the 3x1 with good neighbors and a better location.

If you could buy ONE of these which would YOU buy?

I'm already a landlord.  My wife and I own bought a new house last year.  We kept our old house because it was paid off and put a renter in it.  It's been a great first year!  So we became accidental landlord lol.

Now we are going to BUY some deals and expand our rental portfolio.

I have a good deal on a 3 bedroom 1 bath home.  It's already been flipped, just needs appliances.  I think there is great room to add value to the home as well (a 2nd bathroom could easily be added before we resell it later.  But its 100% rentable now).

I used the pro tools and was just wanting someone to take a look and let me know what they thought.  It looks to me like it would cash flow pretty easy.  Thoughts?



I was super conservative with all my numbers, still learning.

Awesome advice. I really appreciate it.