All Forum Posts by: Stephen J Davis

I think all you need to do is call around to other companies to get a policy. Hope this works out for you.

Most are but you need to meet them before you have a deal and set it up. I go by and meet them and tell them what I am doing and get permission to bring the deal to them. I have never been turned down.

How many units are there total? If under 20 you should probably continue to run them yourself. I have run 20 houses in about 6 hours a month making about $7000 in positive cash flow. 

Any area can be good or bad. Get to know the area and find the sweet spot where rents are the highest per dollar spent on the property and gives you a healthy cash flow. 15% or higher. Join a local real estate investor club to build your team and get around like minded people. Real estate investing can be lonely since most of your friends and family won't understand what you are doing. Take a course on property management which is a very complex thing. We teach that in our course that is available to take online. If not us, pick someone and get it done. Thanks and good luck.

Any area can be good or bad. Follow these steps.

1. Get to know the area. Prices and rents. You will find a sweet spot where the rents are the highest per dollar paid for the property. This is usually the $150k to $220k neighborhoods.

2. Join a local real estate investor group and get around like minded people that can be part of your investing team.

3. Take a course on real estate investing like ours or somebody elses. Property management is a precise art.

4. Start analyzing deals and look for motivated or distressed sellers. Your all in price should never go above 80% of ARV. 70 to 75% is the goal. All in is purchase price, rehab, closing, and holding costs.

5. Look for deals that have a cash on cash rate of return 15% or higher as a rule.

This should get you started. Good luck.

Consider passive investing like I do. No loan qualification and the rates of return are the same or higher. My group has operator/syndicators that you could invest with. We bought over 1200 units in the last few months and 2021 is going to be even better. 

Find out what every house just like yours is rented for right now. Run the comps. The average will be the sustainable number. Sorry, but it has nothing to do with what you are comfortable with or your goals. It is what the market will bear. This should have been done before you bought the property. Thanks.

Taxes never kill deals. It is the price. I have owned hundreds of cash flowing properties in TX. TX rocks for investing. I am paying all in about 75 to 80% of ARV max. The ARV range is from $150k to $220k, This is the sweet spot where the rents are the highest per dollar spent. Don't get discouraged. You are probably looking at full price deals or houses that are out to that price range. I teach all of this in my Saturday class in Houston.

Like with anything that you want to be good at, join a club. There are multiple clubs in the Houston area including mine where you can meet other wholesalers and build your buyers list. This is the fastest and most effective way.

I would keep looking. This is a recipe for trouble. Find a family and only use one lease.