All Forum Posts by: Brooks Conkle

I'm analyzing a deal that has approximately negative (-$3,000) in cash flow each year.

I wouldn't normally invest, but the kicker is that I have the opportunity to get a deed subject to the existing mortgage.  This makes it interesting to me, because it's another asset on the books but one less loan on the books.  [yes, of course the risk is that the lender calls the loan and I owe the balance].

Interested to see how you might analyze and weigh out your options.

Thanks!

Hi Lane, I live/operate in Mobile, AL - down on the coast - happy to assist however you need - plenty of affordable stock here compared to your market I'm sure.

Yep, the time is definitely a key variable in deciding what route to go.
Thanks for your thoughts!

if you can manage it - that's definitely one of the variables to take into consideration!

Odds are good you will need more than 20% per property. - how much would you suggest?

I am also not sure that $100K houses are the best investment. -  in lower Alabama, this is a pretty solid house :)

Agreed.  
But in both of my examples, I'm looking to use leverage.
Just one takes more energy/time --- buy/fix/rent/refi.
Trying to compare the 2 ideas.
I'm not sure if there's a clear analysis for this, as it's hard to factor in risk factors, time, etc.
Thanks!

Great points.  
Getting the ARV right is key.
And I feel like contractors is a forever game -- just depends if I want to devote the time.
Also some risk in nailing rental rates and knowing those.
If I bought turnkey, I reduce some of those risks (also reduce amount of built in equity as well...)

So if I've got $80k cash, should I....

A. find a discounted property (in my market) to repair, get rented, refinanced, and repeat (BRRRR it's cold!)

or 

B. Find 4 turnkey rentals (open to any U.S. market) for up to $100k each (assuming I'd have to say byebye to the cash for the down payments).

Would love to hear thoughts on this.

Thanks!

@Ben Lapane - it's solid.  I'm a broker.  Own a few rentals and Airbnbs here, do flips periodically, etc. -- at the end of the day, it's probably not much different than any other market -- just more accessible because it's much more affordable.  Let me know if I can help, thanks.

Technically you would need a real estate license in order to collect a fee from the seller in the state of Alabama.  I'm also located in Mobile, AL --- shoot me a message and feel free to connect with me on any future deals that you have -- thanks!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $18,000
Cash invested: $55,000

We use this home as a short term rental property.

What made you interested in investing in this type of deal?

Located on the edge of Downtown Mobile, AL

How did you finance this deal?

Finance Company + Cash. Then refinanced.