All Forum Posts by: Tom V.

@Ryan Weirick

@Owen Dashner

@Christian Bors

Thanks for the replies, guys. I appreciate it. I didn't really think there would be any significant drawbacks to not having a basement, but since I'm new to investing I thought I'd ask the forum in case I was missing something obvious. There is an extra room in the house for storage, so that helps.

Thanks again!

It sounds like what you want to do is the BRRRR method of investing that is mentioned a lot here on the site. But, I believe that technique is dependent on buying the property below market value and then achieving forced appreciation through renovation. That's what allows you to refi and get your cash back out. I don't think that's possible with a turn key property at full retail price. That forced appreciation is where the turn key company makes their money, instead of you.

I'm looking at a SFR rental property that has no basement. Concrete block foundation with a crawlspace. In this area (NW Iowa) 99% of homes have some sort of basement, whether finished or not. A slab or crawlspace foundation is rare.

This is a B class property in a A class neighborhood. It was built in 1930 and is valued around $100K. Most of the surrounding homes were built around it in the 1990's and are valued $200k+. Will likely rent for $1000/mo. It has been well maintained and was remodeled 2 years ago with medium grade finishings. 1068 sq/ft with a double carport.

This looks like a good property, but the thing is, severe thunderstorms and tornadoes are a real thing around here. Home owners like to have basements, I know I do.

I'm wondering if the lack of a basement could be a problem? Pros, cons?

 Fantastic information, Chris. Thank you!

@Raeshelle C.

If it takes you a couple of years to save up $20k for a down payment, that's really not too bad of a time frame. I know you want to get into the real estate game right now, but think of it this way. By saving as much money as you can every month, you are ALREADY in the game. You're just in the beginning phase of saving, which is just as important as the next phase, buying.

It sounds like you are a hard worker and you have goals, which is great! The best thing you can do to speed up the saving process is increase your income as much as possible, and cut your expenses as much as possible.

If you don't already do a monthly personal budget, that is probably the one thing that could make the biggest difference in your savings rate and get you to your goal faster. Every dollar that gets spent is like a dollar LOST in your savings plan. Check out Mint.com for free budgeting tool.

Just be patient, if you keep your eye on the goal and remain persistent with your efforts, you will get there.

Good luck!

@Peter Grote

Aside from providing a fire extinguisher, I would also be sure to show them where the main water valve is and how to turn it off if there is ever a major water leak issue.

That's an excellent business idea. You solve the very problem that I'm asking about. Unfortunately, I'm not looking in the Birmingham area, but I wish you much success!

Thanks, Jonathan. Based on the variety of cities you mentioned, I have pretty good idea what company you're going with.

Adrian, you mentioned it's been difficult to find deals where the numbers work. I'm curious, what kind of properties are you seeking and what price range? What Cap Rate, COC, CF, and income expense ratio is your bare minimum in your market? Thanks.

Thanks @Matt R., I'll check it out.