All Forum Posts by: Todd Pultz

@Xavier Hamblin I’m sure there is. There are a ton of them in local areas and nationally. I’m not on Facebook, but I’m sure you can RTA k them down

@Xavier Hamblin real estate investment association. They are all over and I’m sure you have something local. Or some other meetups. Great way to connect and awesome way to find private funds potentially. Remember your new and trying to learn and there are investors out there like me that will latch on to a young guy that has drive, works their take off and not afraid to hustle!!!!

@Xavier Hamblin house hacking is a great first step and a way to get going especially if you can find a brrr deal. However, I would not wait 2 years to get rolling. Use this platform to find a local mentor. Go to reia meetings locally. Find someone that may let you work with them in their real estate business for cheap, but don’t wait to jump in.

If I knew at 20 what I know now, I would have bought multifamily properties then and lived on my moms couch for a few more years! Hard money lenders will require around a 640 score and most will evaluate the deal more than you. Your experience will determine their rates. However, I suggest saving and trying to get to 10k in your bank account. Lenders will want to see reserve funds.

Best of luck to you

@Tim Jacob I agree that you will have a hard time finding the right property management for D and even C. For that matter, most find it hard to find a great property management for many areas. I self manage all of our C and D properties and have a management company that runs the same for some investors. You have to be a different type of manager and it’s not easy work, but we have very few issues of people tearing our stuff up. Certainly no more that ones that live in our B properties. I do completely disagree with you on Covid affecting C and D but not A and B. I actually think you have that backwards. First, I have hundreds of C and D doors and we have had 1 tenant not pay due to Covid and they were immediately helped by a local agency.

But here is why C and D are affected less. We partner with a lot of organizations that help certain individuals whether it be re entry programs, addiction programs, section 8, mental health organizations etc. with that a large number of our residents receive some type of subsidy and most are not section 8. We also have section 8. Lastly, in C and D there are a large number of individuals that have SSI, SSD or something similar, so 75% of our base has some guaranteed money coming in every month. Additionally, the other percentage mostly have some type of job that is essential or they are street smart and know how to hustle work for a buck! Where we struggled was the B residents that had some type of office job that was not essential or our waiters that were not essential.

There are plenty of reputable managers that will manage C and D properties. Some extremely large national management companies that are very well respected specialize in these properties. There are also a lot of managers that are simply afraid and out of their comfort zone. There is no fantasy about cash flowing, it’s a Realty if you have a smart business plan and manage your business correctly.

As far as maintenance, I must just have difrent experiences, but my C and D renters have much lower expectations and do not complain about stuff as much and my B renters are a bit more needy.

Just my 2 cents!

@Adrian Fajardo the numbers work based on what you provided. A little tight but ok. You would be buying it at 8-9 cap and after rents are raised you would be operating somewhere around 11cap. I'm not familiar with your area, but based solely on income, I would guess your ARV would be around 205k, is that what you believe? If that is accurate and you refinanced you would be leaving close to 30k in the deal. So it doesn't fit the the brrr criteria, but you appear to be cash flowing a little. I would say it's a base hit but not a home run.

@Adrian Fajardo so what is your purchase price? I can get close base on your numbers, but want to know exact as your closing cost and down payment seem high

@Josephine Wilson I think I’ll leave this alone, but you should really take a few minutes and have someone teach you how the economy works and affects each of us especially if your in real estate. Good luck to you

@Tyreek Mathis you lost me! So we buy a 6 room and cash flow 2k a month then we do this same buy in 3 years? So now we have two six room houses? This by your math would put us cash flowing 4K now? Where you getting the other 6k?

@Isaura Orellana I love your enthusiasm with Detroit and you have me looking at Detroit seriously over the last few days! However, I’m confused with your math and was just curious what formula your using.

If our gross is $10,232 and we add Montrose we will gross $11,500 monthly. If we simply take off mortgage and interest we are already down to $9,500. Now your 8% management takes us down to $8,500. You have to figure something in for vacancy/rent loss as you’ll never move someone in same day you move someone out unless your an absolute rockstar! You will have turn costs and you have to put something into capex, you have to have insurance, you will have repairs no matter how great your guys flip was, your going to have landscape costs(unless all your tenants cut their own grass), you will have water/sewer(unless your tenants pay that), your going to have taxes etc etc. so rough math puts the TRUE cash flow on the property roughly $6k-$6500. Now, you would be buying these at 14-15cap which is decent

These are still good buys at your rents and prices, but I think your quick pro forma is off and we’re going to need a few more houses to get to 10k/monthly.

Keep pumping, I love it!

@Remington Lyman yes way cheaper lol, but if the numbers work at higher entry, they work! We just took down a 10 fully occupied at 210k, a 16 at 305k............still cheap to get in but we love Columbus!