All Forum Posts by: Terri Haley

@Oscar Yap

Definitely run all of those numbers through an investment property calculator, spreadsheet or whatever you use. Be very careful to include ALL expenses of purchasing, carrying, renting, and ultimately selling the house. That pricepoint at first glance kinda gave me the willies. Then I ran it through my analysis and the numbers don't look so promising. Even with 140k down (plus closing costs, etc) with rents around 2k, and all other costs and cushions, the numbers just don't look so exciting.

Also be sure to really verify the rents for the area. They are *typically* about $1 per square foot right now... depending on the location and even depending on sq footage of the property. Run the numbers and let me know what you come up with.

@Oscar Yap

Hi Oscar,

There are deals to be made here in Vegas/Henderson... they are just few and far between and you need to pounce on them when they get listed. It is difficult, if not impossible to make the numbers work at retail prices. So, finding the fixer-uppers / below-retail-value properties is really the best way to go. Of course, not every property is listed on the MLS, so you'd have to put in a lot of effort in tracking down the off-market wholesale deals, or find a good real estate agent with experience in investments. I search every day for properties listed at numbers that maje sense.... because that usually means the owner understands the property is not exactly at the top of its game (so to speak) and then of course negotiate from there to make the numbers work. Most props here aren't going to just work right out of the gate... they take some work. Both figuratively and literally.

@Prerana Singh

You are welcome. If you need help, feel free to reach out.

@Prerana Singh

Hi Prerana, Kari at Rate Wise mortgage is great. And also try Nicole Williams (Becca Green) at Guild mortgage in Henderson. They've been great for my clients. Do try to shop two or more for best deal.

@Carlos Ptriawan

My rental portfolio spanned Nevada, Arizona, New Mexico and Texas. In Texas, the properties were in Taylor, Texas City and Houston. Those cash-flowed "ok"... but I should have bought them at a higher percentage below market. The hazard insurance and home warranty (which I carried on ALL the props) cost DOUBLE than the other areas, so that cut into the NOI a bit.

@Marita Jojo

I owned a SFH in Houston, TX in 2006 until a tree fell on it in Sept. 2009. Had an unwelcomed visitor name Ike... Hurricane Ike. I was working a temporary assignment in San Jose, CA when I received a call from my tenant in Houston, TX. Tenant: "Terri...uuhh you're not going to like this" Me: "oh boy, just tell me" Tenant: "You know that big tree at the back of the house?" Me: "That really big oak tree?" Tenant: "Well, it's in the house now". At this point, in 2009, I was losing the properties anyway, so I asked if he had somewhere to go. He said they were moving into another house already. I told him thanks for being such a great tenant and thanked him for being so patient and understanding with the tree root issue the previous year (different tree--same house. I had bought the house from an investor as a flip --mistake #359).

@Melanie Stephens

Hmmm. Shall I tell the tree roots in the sewer line story, or the squirrels in the attic story, or the Harley in the living room story, or the no insulation AT ALL in the attic story, or the tree fell on the house story, or the story about my four big mistakes? How about the last one... at one point, I had 11 properties, and decided to buy 4 more around mid-2007. The 11 properties were cash-flowing fairly decent, and I should have stopped the purchasing frenzy right there. But, NO... I listened to folks within the REIA who said the market will continue to rise (Shame on me). I bought the last 4 properties at the top of the market. So when the crash started, those four properties led the way down like a full-on steam engine. They actually led the crash in a very spectacular fashion. There might as well have been lights and sirens. My portfolio was down half a mil due to those four mistakes alone. Oops.

Lessons learned.

@Shant Mahserejian

I wish I had that ever-elusive crystal ball.

I don't make any predictions. Just make sure each property I look at works righy here, right now. And if it does not, then move on. I'm not in a hurry to stockpile properties like I mistakenly was in 2004-2007. Lessons learned. With that being said, I do watch the trends. And not only just what information is mass-produced out there. Yes, there are a lot of stats reports released, but every other week or so, I scour the MLS and public records and make my own determination as to what is happening in the market. Do I ignore the stat reports? No... I read them. But do my own research on the specific areas, price points, types of properties in which I (and clients) are interested. What I am seeing is rents (in certain areas/property types) are increasing albeit slightly. Values are still increasing. REO's... banks are rehabbing and selling at retail. SS...most are going for retail value. It's nuts right now. Another reason to not jump into a situation that would be detrimental right outta the gate. Again.. lesson learned 12 years ago.

@Shant Mahserejian

Hi there! I look at multis every day and the ones that look interesting as of late, just don't pass my critique of the number. I literally just ran numbers on two fourplexes that went live on MLS today, and both scream vacancies and negative cash flow. Some are within HOA's with monthly fees to... wait for it.... >$1,400/mo. The rents were stated as (avg) $800/mo, with two tenants being evicted due to non-payment of rent. I am guessing they were on month-to-month, because we are still under the CDC directive for no evictions. So, with avg gross income of $3200-$1400(HOA)=$1800. Oh wait, two vacancies... 1800-1600=$200 gross income. Uuhhhh.

I'm not saying there are NO deals here; there are. We just need to watch every single day for the good ones. And be very careful to consider ALL aspects of purchasing and owning here right now. (As always)

@Paul Vu

Hi Paul,

Here in Vegas, finding a good property where the numbers work is a bit challenging, but they ARE available. You just have be patient and pounce when they pop up. I put in offers nearly every week, and every so often get to yell, "GAME ON!" They are few and far between, but you have to be diligent and remain diligent. I have auto-searches set to alert ASAP. It's a fun game. I've learned that playing SLOWLY is totally fine. And yes, I'm an agent here as well. Feel free to reach out.