All Forum Posts by: Stephen Ray

@Maan Najjar Congrats on your purchase! There is a plethora of cleaning companies in the area. Just make sure to vet them by checking reviews and talking to references. Your cleaning crew is the absolute hands down most important part of self managing. Same goes for handyman.A good rule of thumb in the area for me was do they answer your initial call and if not how quickly do they get back to you. All cleaning crews will drain, clean and refill (add chemicals) to the hot tub after every guest.As @Reagen Natho its good to have a good line of communication with your cleaners. Let them know about guest feedback good and bad. No cleaning crew is perfect, and there will be guests that move dressers to find a spec of dust and complain, thats part of the customer service business we're in. Theres a plethora of knowledge on this forum. Feel free to reach out to me anytime. Good Luck

Is anyone cash flowing on and OBX property? I'd love to get something to rent during the summer months and be able to use in the off season but can't seem to make the #'s work. I would be managing myself. Even some places that look like I can build a bit of equity in with some renovations don't cash flow. Maybe better chances further north in Kill Devil Hills/ Nags Head?

Hi BP! Anyone out there own any investment properties in Ocean City MD? Specifically that you are using as a STR? Would also like to hear from Realtors in the area that may manage STR's. Looked at a few places about a year ago but the #'s didn't seem awesome. Recently searching for a place to stay for the weekend and the prices seem very high. Just curious if anyone has a vacation property down there that they rent especially if you are self-managing. Thanks in advance!

It would probably help to have more information on your exact conversation. Arc fault breakers are very expensive in comparison to regular breakers. This is new code but they have a lot of issues with the frequency of tripping. That being said, he should of inspected the entire place and gave you a good estimate on everything. The price of just a 100A sub-panel and one with arc faults would be substantially different. The panel is separate from the breakers, but should of included both in the estimate. 

@Phillip S. Hey Phillip. I'm in the Baltimore metro area also. Are you looking at auctions or MLS properties? Typically earnest money will be much less and like others said the inspection contingency can get you out of the contract if major expenses come up during the inspection not accounted for. It will definitely weaken the offer but most likely you wont be able to compete with the big guys on the super hot/quick/cash deals anyway. A property that has been on the market for awhile it might not matter as much. Good contractors are hard to find period so if you find one, don't lose their phone #. You have to look at it from a GC's point of view. You might put 20 offers in before you get one under contract. What is in it for them to spend X amount of free hours writing estimates that will never turn into making $$. Good luck.

Hi @Tyreese Brown. Its a tough market in the Baltimore-metro area! I've been looking for a BRRRR property for quite a while now with no luck. It's almost impossible to find a deal on the MLS. If a good deal comes on it seems like its under contract within 24 hours. On the other end of the spectrum some foreclosures/properties that have sat on the market for awhile seem to be overpriced. I've put a bunch of reasonable low ball offers that have simply been rejected and then the property just ends up going to auction. Like others have mentioned if you do find a place you like you can put an offer in with an inspection contingency which is normal and would definitely work for a place that's been sitting on the market for awhile. Something that just comes on the MLS may not because of some cash offers with no contingencies! Sounds like you have a good GC. Most that I have dealt with don't want to give estimates unless the property is at least under contract. Good Luck!

@Chris Hanisco sounds like a great idea! No matter what you decided to do with your REI after this if nothing else you have someone else paying some/most of your mortgage for you! I would talk to some mortgage lenders because I believe you can get a conventional loan for as little as 5% down with good credit and the PMI will drop after you've reached 20% equity. Don't quote me on that but that would save you 5% and not have to worry about re-financing to get rid of PMI. Good luck!

@Nick Quarandillo Probably going to re-enforce what others are saying but it really depends on you. In my opinion college is a waste of time and money for probably over 50% of people that go. Mike Rowe is very outspoken on this topic. Do you enjoy working with your hands? There are a ton of trade jobs that pay very well and have paid training you could get into. Another great option is going into the military. It seems like there are a lot of successful REI's that are current or former military. VA loans with 0% down are pretty awesome. I know its possible to get into RE with little or no money but I think everyone would unanimously agree that it is much easier if you have a good paying job. Having a job that you can create savings with/ having good w2 's to get qualified for loans is a huge advantage in my opinion. Then once you get rolling you could always leave your 9-5. There are definitely jobs that college is necessary but spending 80k to get a degree in something generic or unusable doesn't make sense.

@Dominique Wilson Congrats on your purchase! What do the #'s look like? 20k in equity now or after you've fixed up the property? 20k goes quickly after you factor in closing costs/commissions. If you only live in the house 1 year you have to pay capital gains. If the #'s work I would say BRRRR is the best strategy.

New REI here that has been throwing around possibly buying a turn key property. I feel like it could be a good investment for someone with a lot of capital that wants to be completely hands off. My question/problem with it is without the possibility to BRRRR or very good quick appreciation you really aren't cash flowing for quite a while. Easy #'s here, you buy a property for 100k so you are in it 25k with DP and closing costs. Even if it cash flows $300 a month after all expenses it will take you almost 7 years to re-coup your initial investment and actually start cash flowing. For me finding a BRRRR and being able to re-use that same capital is the best way for someone with limited funds. Of course BRRRR deals are much harder to find where as TK properties seem to be everywhere.