All Forum Posts by: Tyler Haskell

Brett,

Thanks for the reply! That was really helpful and I will let red door know that you referred me when I talk to them. Thanks again!

Hello BP,

I was hoping to get some input on a few specific areas around Indianapolis for SFH long term buy and hold:

I see a lot of discussion on Lawrence and how even the lower end houses around 50k can be a steady area with a decent tenant class (if you disagree please let me know!)

I also am looking into south west of the city, near Wayne. Specifically just north east of the Indy airport, but can't seem to find any info or previous discussion on this area. How is it in your opinion?

How confident are you on the revitalizing areas within the city, such as Fountain square, or more specifically, the border areas around Ft.Sq.?

Also, any leads on outstanding PM companies in Indy would be helpful! I am looking to acquire a few properties before February.

Thanks for taking the time to respond!

Tyler Haskell

Hey Jeff,

I turned down this deal, thanks in large part to the feedback I received. This was a cold call to a wholesaler who I had been speaking with and he passed it off to me. Pretty much the guy wanted way to much for this property.

Hello BP,

After analyzing several areas surrounding Detroit Michigan, I believe that I could invest in SFH with good cash flow. I have not taken a trip there yet but there are pockets of good neighborhoods suitable for investing. I am looking at the Eastpointe and Redford neighborhoods surrounding detroit. The main concerns I have with long term buy and hold strategy in this area are:

Because the neighborhoods are so diverse, and one street to the next can have a completely different ambiance/class, does that make for volatility and instability for long term buy and hold?

Because Detroit is probably a long LONG way from recovering or thriving the way it once did, and the area itself may see continuing population and economic decline for years to come, does that mean I should expect NO appreciation in home values? What does that mean in terms of long term holding?

And the last thing I noticed in my analysis is these areas is that they have 99% SFH and about 90+% owned with 10% or less rentals. How does that play into owning a rental in that area? in your experience does that mean that there could be a higher demand for rentals/easy to find rentors, or the opposite?

Once again, inventory seems plentiful, great COC returns seem possible, but the external constraints of the city and the environment are worrisome. Thanks for any input guys!

Tyler Haskell

@Curt Davis  @Account Closed @Ryan Owen 

Thanks for the responses. I had not thought about the dangers of taking over a tenant, my first thought was just "How great I dont have to find a renter". The cash flow does seem slim now that I see those numbers, and that rental analysis spreadsheet is awesome!

Updated information I found out today:

The seller will go as low as 65,000

He owes 800 dollars in delinquent property taxes (leads me to believe he may not be in a great financial situation, or his renter is NOT paying rent)

The seller also owns and lives in one of the other units and is the HOA manager, which is not a positive looking at the place.

Still no information on interior or deferred maintenance, or renter reliability or payment history. 

At 65,000, the cash flow is slightly better. Also, considering how low cost it is, would paying cash for it be a smarter option to remove the interest on a loan? Also, would I have any options if I did purchase on removing the renter for a new one with higher rent/and or increasing rent to market average of 800? Are there laws against that? 

I feel like 65,000 and the ability to get the rent to 800 would make this a more feasible deal cash flow wise. Thanks everyone!

Hello all,

I was presented with a tentative offer for a buy and hold property in Sacramento, and am looking for some guidance on if this seems like a decent investment:

Property is a SFH in a Class C neighborhood. Built in 1983, it is a 2/1 and about 821 SQFT with 230 SQFT for the garage. It is in a HOA of about 10 units. I have not seen the inside and have minimal numbers:

I can negotiate the price to $75000 - 85000

Currently renter occupied at $700

average rent within 1 mile is $860

I am told there is no rehab work needed, and the renter would be staying.

Principle and interest with 25% down or $18750 is $270 a month

HOA dues are $95 a month, renter pays utilities.

I have only estimated taxes and insurance at $150 a month

Not sure about closing costs or other fees yet.

By those numbers total monthly expenses would be around $515.

Cash flow is $185 a month.

Comps and other estimates put the retail value at $90k

Anyways, These are only rough numbers but the seller needs to know within the next couple of days if I am interested. Anything else I should be considering for expenses? How do the pictures look? What do you guys think?

Thanks!

Dev,

Thanks for the input. Very straight forward answer to my question, generate my own deals, and help me to not make rookie mistakes and complete the deal, split the profits. I think that this is a fair deal for any experienced professional in exchange for his or her time. Thanks again!

Mike, I'm glad to hear that you would find value in my options to put some work in for training. I can only hope that my local mentors feel the same way. I know that even if things don't work out with one or more people I meet, I can just continue on and learn even more from that experience. Thanks for the comments!

D'mark, thank you as well for replying. I understand that continuing a relationship is very important regardless of the time factor. I believe that jus like finding the right REI deal to close, the agreement has to work for all parties involved, or it won't work. I need to receive the information and training to be successful in this field, and the mentor probably needs some sweat equity, an expanded network, and an understanding that time with someone like me now may truly benefit them financially in the future when I become established. Thanks for the great advice!

David, thanks again for replying to my questions. I appreciate anyone that will take the time to speak with me, as active REI people are usually some of the busiest that I have ever seen. I will continue to work on developing my criteria for investing and continue to learn the area, so that I can at least somewhat intelligently speak about what I want. I will give you a call shortly so we can set up a meeting. Thanks again!