All Forum Posts by: Lisa Phillips

@Rhonda Jones that is a dreaded mistake we all fear. Jon's advice was spot on in my opinion. I didn't have extensive flooding so much as consistent flooding when it rains.

You need to get the area dry as soon as possible. Can you run a few extension cords?? Dehumidifiers, Fans, will help halt the mold from developing. Mold needs dirt, water, and time. If you take care of the water, and clean the dirt, you can really combat any long term issues that may develop.

But, ah...poor dear. I feel for you, this can happen to ANYONE, and it was just your time and the cities old pipes.

I have to say that @Bryan L. showed the fundamentals accurately, and I agree. My rehabs usually run 20-25k , and usually 10-15k for what he put as cosmetics, and the others come off his range of prices if the home needs a new roof/hvac system/windows, etc.

I do treat a sub30k property as if I want it to be around for the long run, so I do invest up front in any large items that will cause problems in 3-5 years (if the roof is looking worn). I have noticed that furnaces are really long lasting, so thats not a given that I have to switch that out immediately. Windows are obvious if they've never been change.

@Christina R. I WILL ALWAYS SAY YES! Now, I dont install new dishwashers or upgrade to granite countertops, but for what I call the The Coziness Factor, when I newly renovate a property I spend extra on - nice paint on the walls, tile/laminate, nice light fixtures (cheap), and new appliances. So far, everyone of those items makes it rent faster rent, makes the tenants appreciate the nice home, attracts higher quality people for those neighborhoods (nicest house on the block mentality), and all those things help to deter maintenance (unlike fixing linoleum and cleaning carpet). i think that's why I don't have much trouble renting out my units very quickly.

Seriously, those little details make the house look brand new (sparkling shiny new appliances, esp). AND, they hold up beautifully, i have had no service calls on the appliances at all going on 5 years.

I have to say to everyone here, these are some of the best stories I've seen. Excellent, and @George Carr - how beautiful!

I used the listing agent, only once though. Now I only use them if I can't find another agent to fully represent me.

When I submitted my bid with this one, she called me back in 2 hours (since she represents the buyer and each individual investor), and said someone else had submitted a higher offer, do i want to resubmit and raise my price. I have no proof if this was true or not, but did not like the idea of her driving up the price undocumented before the bid was submitted. I couldn't prove anything, but realized that its in her best monetary interest to drive that up. If you don't hear about that tactic, you should be okay, but it really made me want to have some representation where there isn't such a conflict of interest. Just my 2 CENTS ;-)

Hopefully, that was just my one Baltimore listing agent experience, and isn't repeated anywhere else. When I do find an agent, I make the process as smooth as possible since commissions are so low: They are only there to open the doors, easy enough, I dont require much input from them.

@Christopher Cruz Hi Chris! Personally, some have been cash (401k for one, Titles my car that was paid off but had value at 5% for another property). I also obtained a personal loan, as well as conventional financing. You will hear this many times, some credit unions/local banks don't have a minimum, others do. You have to just ask around before getting preapproved.

@Pyrrha Rivers This is a good question and issue. I did not go Sharad's route because I thought the real estate agents where playing both sides and trying to raise the price. However, I did find a R.E. Agent in this price range by going with the local lister who had a 10k property. I did a vlog on it, going over what the attitudes were and how I got around them that has more detail:

http://www.affordablerealestateinvestments.com/0013-finding-a-real-estate-agent/ I also have this post on my biggerpockets vlog. This may help, but its something thats a bit intimidating, understanding their motivations and how to navigate them will help you to not be discouraged. I would say that Aaron's advice on not taking no for an answer has been the key for both of us. You realize that you just run into someone elses limitations, not your own, so you just go around that person.

@aaron yates - not a born diplomat, are you ;-)

I also just wanted to say i hope the conversation changes. When a new investor asks if there is a 23k house, why is it priced so low when the rents are so high, instead of investors jumping on them for wanting good cash flow, they need to start asking, "What's the crime rate like? What are the rents? What do the photos show, if there is only 1 it may be a dump, but if there are a lot of photos, it could be a gold mine, so hurry up.

THAT is a completely different conversation we were not having here on this site, and that's why I think the discussion should start, its in the nuances. Of course, there are other crucial metrics I use, but those are the major 3.

@Ann Watkins Thank you!

@Warren Foster Nice summary, Warren. I think we've proved our point :-)

@Sharad M. Thanks, I am hopeful the conversation will start to evolve now, and this is part of it. This is a fun post!