All Forum Posts by: Tony Castronovo

While not female, I thought I would offer a response.  First thing that came to mind was "tell someone where you are".  And with technology why not consider an app.  Check out this article: 

http://www.elle.com/culture/tech/news/a14941/womens-safety-apps/

Sounds like everyone has a war story on this topic.  I think it's unanimous. Ha ha.

Owning a piece of property out right does give you piece of mind...especially if debt scares you.  But you have probably heard the term "good debt".  Financing investment properties with historically low interest rates is "good debt", in my opinion.  You do have to consider your risk tolerance though.  If I had $100k in cash I would consider buying three pproperties...say at $100k purchase price each.  I would finance them...if you go the conventional route you would use $60k in down payments ($20k each)...look for properties with cosmetic repairs only and keep rehab costs around $10-15k each.  You should also consider keeping some cash reserves for capex items and emergencies.  My 2 cents.

@Omar IsmaelThanks @Jay Johnson

@John Barr Not sure what you mean about "what I am doing extra"? COC returns vary just like anything else. I probably pay more than average closing costs due to HML's and two closings. And of course the rehab costs are a big factor. When I analyze a deal I try to aim for 10%+ COC return. But I consider more than just one angle. I look for a little equity (if the equity is higher and the COC return is lower it may still meet my criteria). I also consider the risk. Right now I am laser focused. I only look for properties in three zip codes...focused on SFR 3/2's...modest rehabs...purchase price $80-130k...etc.

I am trying to establish repeatable processes.  I took a chance earlier this year on a property I bought for $180k...4/2 with a pool...double the rehab costs I am used to...big project.  What a mess!  I am not saying that I can't be successful there.  But I think it is really important to "get good at something".  When I see a new property that fits my specs I jump on it.  It's much lower risk.  I know what to expect.  So I'd gladly trade off a few bucks for lower risk at this point in my RE career.  Looking for base hits...not a home run.

Wow!  Thanks for sharing your experiences guys.  That was my intuition...that this could lead to issues down the road.  Since he is a new tenant I will start setting a precedent and suggest I handle all the maintenance.  It's spelled out in the lease agreement, but I will discourage him from "helping me out".

I have a new tenant that works for a construction company.  He seems pretty laid back and easy going.  Has mentioned a few times about him taking care of this and that.  For example, he volunteered to hang a spice rack in the kitchen pantry that I have not had time yet to install. 

Is this a good idea or bad idea?  On one hand, I like that a tenant is self-sufficient and doesn't need me to come change a light bulb.  On the other hand, I don't want to set a precedent that he can start making general repairs at his own discretion.  Thoughts on this?

@John Truong the ARV's have been pretty spot on. I checked on my NetWorth property and they estimated $21k for the rehab. I did it for $18k (including foundation repair). I did make some modifications to the repair items though. I'd say they were pretty good on the estimate. I don't think NWA is providing repair estimates anymore.

@Madeline Burke They just do Realtor.com and Doorsteps.com right now.  I think they are adding others.  I manually create a Zillow listing which puts it out to Trulia, Hotpads, and others.  In my experience, that has been plenty.

@John Truong On the property in question I was buying it from NetWorth Realty (wholesaler) and wasn't able to use their competitor for financing. ;)

I provided a list of repairs and estimates. That has been standard protocol on the three HML deals I have done. Although the first one I did not have to hold any money in escrow for the construction. So not sure why they made me give them a list.

Thanks @Nicole Harper...have definitely leveraged my lessons learned.  Chin up! :)

@Ryan Wright I put 20% down.  The original points were planned and part of the economics.  What hurt was the extra points for extending the loan.  Regarding GC, now the moment I sign a contract I am reaching out to my contractors.  My last two deals I had contractors start 1 day and 10 days after closing, respectively. Much better!