All Forum Posts by: Sunitha Rao

Hello! Fellow newbie here so feel free to take my thoughts with a grain of salt :) I️ second the sentiment of confirming rents in that area - I️ visited with a few turnkeys in KC about a month ago to get a feel for the area and felt that some of the rent estimates were more optimistic than warranted. The second thing is - I️ don’t know how much your pm is charging but I’m running my pm numbers at 12/13% to take into account potential tenant placement fees, as well as any extra fees for periodic walkthroughs or any other extra, unforeseen costs, which can really take a bite out of your cash flow for the year, depending upon how much the PM charges.

Former bartender and server here! I️ worked in service for several years and through college...can’t really make a judgement of the type of tenant they will be, based on their profession. Some could be irresponsible and be terrible tenants, while others might end up being completely responsible and great tenants! Sometimes, looking at the type of establishment they serve at, plus the length of time they’ve served there, can be a helpful indicator...but it’s only an indicator :) One potentially helpful rule of thumb: those in the industry definitely make more than their stated earnings, as it is rare to claim 100% of cash tips. Best of luck!

I looked into this property as I grew up in that area and know it well. It’s certainly interesting but probably not the right fit for me at this point. Here is the info I have so far: - 3 of the 4 units are rented between 900-995. The listings online provide different rent breakouts vs the breakouts provided by the listing agent and the listing agent is not very forthcoming in terms of providing rent rolls, leasing information, rental history, or systems information (to calc needed capex reserves). - Also, the bedroom/bathroom breakout varies by listing and doesn’t make sense. That being said - he did mention the roofs are new (the quad is made up of two top/bottom duplexes) and appliances are newer, so sounds like information forthcoming when favorable to a sale. - The area is not bad at all in terms of crime, etc, but is surrounded by low income projects and other types of modest housing, so don’t know if a reno/flip would provide the income that would make the project worth the time. - For buy/hold - this area has many section eight and the new owner would probably have to be open to that to limit vacancies. - it’s wood Construction and the current owners seem to have had issues with termites, as they’ve fumigated, which includes tenting and removing tenants - expensive procedure that could significantly impact cash flow. The agent I worked with to get this info is excellent and has worked with investors before - pm me if you want her contact. Good luck!

Hi Brad! I’m also running numbers for my first property so can’t help much with the financing piece, as I’m learning as well. However - what caught my eye was the quick p&l shown above. I’m sure you already know this, but don’t forget to take into account vacancy, repairs, capex, maintenance, utilities, etc etc. Also - I’d look into the history of the condo fees - do they raise the fees periodically and what do these fees cover? I looked into some turnkey properties as I’m investing out of state (the Boston market is a tough one) and some of the tk providers gave me numbers that looked fantastic and were similar to the ones your showed...but as soon as I plugged in the other expenses, I was looking at a cash return of 3%! Hardly enticing. Anyway - hope I was able to help you and best of luck!

@Nicholas Kilpatrick@Jason G. - Thanks for the information.  I haven't checked out Roofstock but will do so.

@Account Closed - I'd love to meet up! I'll send you a connection request.

Wow! Thanks so much for the information and offers to assist, everyone!! I'll be on contact via PM to further these discussions (which I am really looking forward to). Have a great night!

@Antoine Martel

Hello and thanks for your message!

To answer your questions: I want to start with multifamily to more quickly achieve economies of scale and to (hopefully) reduce the impact of vacancies - I don't want to get stuck with paying the entire mortgage payment when tenants are being turned over, etc. I have thought about single families and while I have been tempted to go the SFR route, from a short term perspective, as there seems to be more availability/affordable options, I think the multifamily strategy will be best aligned with my interests in the long term. In regards to the cities I've looked at – I puled together a list of about 2 dozen cities, including Atlanta, Minneapolis, Charlotte/Raleigh, Charleston, Orlando, and quite a few others, and then made a matrix of various economic stats, including projected household growth, unemployment, projected disposable income growth, and projected job growth. Given these metrics and other aspects of the various markets, Indy was the best aligned.

How long have you been investing and what has been your experience in the markets you are active?@Tom Ott

Thanks for the links, I’ll check them out! Do you mind if I follow up with you via PM if I have any questions or to further this conversation?

@Matt K.

Thanks for the pointers! I’m trying to learn the areas to the best of my ability, but neighborhoods and zip codes can be very “pocket-y”, which makes getting to know the areas all the more interesting. I will be spending as much time as possible on due diligence!

Hello everyone!

I’m just starting my real estate journey and am very excited about meeting people on this platform!

I currently work in Boston and am looking to invest out of state because real estate is pretty darn expensive up here. My main focus is on 2-4 unit Class B multifamilies, with ideally 2 bed/1bath units in Indianapolis, and the strategy would be to buy and hold. Given that I am new to the process, investing at a distance, and am working a demanding full time job while balancing the demands of grad school,  I am hoping to find properties via turnkey – as long as that option is feasible from a cash flow perspective – or properties that only need light rehab, updated paint and flooring.

I’m currently working on narrowing down neighborhoods that would make for good investments, so if anyone has recommendations or experiences to share, I’m all ears! Lastly – if there are other metros that any of you feel are good cash flow opportunities with strong market fundamentals for out of state investors, I’d love to hear your thoughts.

Thanks for your time!

-Suni

@Steve Bracero Thanks for the welcome!

@Reaz Ahmed - I'm a Floridian so any offer that pulls me away form the frigid New England winter is a tempting offer! Haha

I'm very goal oriented as well - Life is boring without something to work towards, right? Thanks for the welcome!