All Forum Posts by: Jeff Stansberry

@Brent Neuenschwander Thanks for laying out the math I appreciate it. Property taxes come to $756, Insurance around $600, PM around $900, and yes $450 for CapEx. In addition 7% for vacancy and $700 for maintenance. Yes I agree it would be tight. I will pay $53 cash to get a discount then refinance so less money down would be higher return. But in a bad area it wouldn't take much to eat away at the cash flow. Thanks for the article I will definitely check it out!

@Jeff Wallenius and @James Little I think I'm going to look into nicer areas, doesn't seem worth the risk. 

Thanks!

@Ali Boone Yes it's a rehab property, and in 2 months when the rehab is done then I will take it over. The low price and high cap rate and cash flow was what made me consider it. 

@Hadar Orkibi I was told for Frayser that some streets are nicer than others, but from reading other posts as well I think I'm going to stay away from it and put a larger deposit down for a nicer area. The TK provider said it was a B neighborhood... 

@Diane G.The 53k does include all of the rehabs which is what is the most inviting about this, starting with new house essentially. No I don't know the people, I would imagine the TK provider has their team that they use. Yes it's Frayser on Theda Avenue and they said more houses are owned, not rented which says it's a nicer area of Frayser. 

Thanks for the advice!

Hi,

I was hoping I could get a second opinion on whether this deal was worth it since I have never purchased out of state before, or with a turnkey provider.

It's located on Theda Avenue in Memphis

Purchase is 53k (was 56k but all cash got reduced) and will refinance later

3 bdrm, 1 bath projected rental is $750

Top to bottom remodel (Room, HVAC, Furnace, Outlets, fixtures, Floor, paint, toilets showers, cabinets)

My questions are:

Is it better to pay higher for a house (80k to 110k) for higher rent and better area and lower Cap Rate?

Versus this, top to bottom remodel for hassle free on a older house and trust property management to screen well?

I realize this might be priced a little high but the rehabbing will even out in the end?

With all of these additions, wise to lower Cap Ex percent to 5%? and keep maintenance at 10%?

Thanks in advance for any help on analyzing this one. 

Hi,

I was hoping I could get a second opinion on whether this deal was worth it since I have never purchased out of state before, or with a turnkey provider. 

It's located on Theda Avenue in Memphis

Purchase is 53k (was 56k but all cash got reduced)

3 bdrm, 1 bath projected rental is $750

Top to bottom remodel (Room, HVAC, Furnace, Outlets, fixtures, Floor, paint, toilets showers, cabinets)

My questions are:

Is it better to pay higher for a house (80k to 110k) for higher rent and better area and lower Cap Rate?

Versus this, top to bottom remodel for hassle free on a older house and trust property management to screen well?

I realize this might be priced a little high but the rehabbing will even out in the end?

With all of these additions, wise to lower Cap Ex percent to 5%? and keep maintenance at 10%?

Thanks in advance for any help on analyzing this one. 

Hi Kirt,

Is this still available?

I'm considering going through a wholesaler for the first time. I was curious if anyone has used Valleywide Investments in Lakewood OH. 

They have properties available in Cleveland. 

In addition, any thoughts on the rental market there as the Vacancy rate seems on the higher 

side as of 2015. 

Thanks!

Hi,

I'm looking to purchase my 2nd rental property after 10 years. I have about 50k for a down payment. I've been looking in affordable areas like Blythe, Barstow, Riverside, and Victorville. 

I am finding however from the asking price and current rent trends I am not coming close to the 2% rule. I do realize that property values have been going up the last 5 years and rents aren't going up that much to follow which would be affecting this. 

Am I missing something? Is the 2% rule a pipe dream? What are some other affordable areas in Southern California that you would recommend with a low price?

Thanks!

Hi @Jason Ines

I had a friend who invested a lot in Apple Valley and Victorville and we figured Barstow would be the next city to grow. 

I used to manage it myself but after a lot of issues, I went to a property manager. Sooo much better!

Hi @Jeff B.

Thanks for the feedback. The only utility that I pay is trash. I believe most landlords in the area just pay water. 

Thanks @Jason Ines for the recommendation. 

I refinanced last year to get out of my ARM rate so it's higher now but at least a 20 year low rate. Good luck on the saving for a down payment! That's the least fun...

Are you looking to buy in Riverside or Corona?