All Forum Posts by: Valerie K.

@LaraWhite- if/ when I get some good feedback on systems/ spreadsheets, I will happily post my findings 😊

I just started a separate thread on this subject. Do you start with Redfin, Realtor.com? Any favorite places to source demographics like jobs and job growth? Are there any platforms that systematize this search, ie MashInvestor? I feel like I go down a rabbit hole every time I log on. I’d love a system! Vet the market, then the properties. I would agree that general networking and education help lead you to a market,  but it gets overwhelming in where you turn to collect data from there. 

Anyone using a spreadsheet? I’m a pilot and I like checklists, systems and routines to automate my processes. Thank you!!

Hello BP! I’d love to hear a sound- off on how you do your research into new markets. My problem is weeding through the VAST amount of information out there!!! So many websites, programs, videos, podcasts. I could spend all day long, so I need a system-a 5 to 10 step system if one exists. 

Tell me how you do a quick and dirty analysis and then what due diligence you do to further analyze deals that get past the basics. 

I’d love to get in touch with anyone you use there!!! I’m hearing great things. What are property prices for say a duplex? 

Hello All! First- thank you for taking the time to comment and advise, I truly appreciate it!

This broker is very active here on BP. Not sure I should share names, but he is the largest in Cleveland portfolio size and has been managing for years. I have absolutely NO doubt in his property management. Being new, I have a lot to learn but my general impression is that these are cash flowing assets and I'm not going to see much/any appreciation. Section 8 has alleviated as much of the headache as possible. These are C neighborhoods. I figured I'd get my feet wet and start there. I'd love appreciation and would take that in lieu of cash flow when I can find that neighborhood that I'm not priced out of. Like I say- I'm new!Specifically these properties are multi family and costing around 55k/ day in rentable shape. With 20-25% down, 30 year mortgage, 5% allowance for maintenance, Cap Ex, Vacancy, 10% prop management, PITI, water/ sewer, lawn care- I'm left with about $150/ door. It's been a whirlwind and I need to recheck my numbers but this is pretty darn close. Once mortgage paid off more like $450-$550 a door without any appreciable rent increase.

These may be first base deals vice home run, and they will probably be worth the same when paid off. The trade off again is low entry point. I have been advised by several sources my vacancy/ cap ex numbers are reasonable. These being way off would be my biggest problem. 

Separately- I’d like to look at the newer areas people are investing but I may have missed the point. Chattanooga, Memphis, parts of Florida, etc.  I’m open to advice/ suggestions!

Appreciate the response. The section 8 stuff is super high cash flow, and likely super headache, higher vacancy and repairs. This offer is a side by side quad, but the cash flow is terrible. I haven’t seen much historic appreciation either. And they are offering it month to month. I’m new but that spells vacancy and a lot of paint. At $75 a door, nowhere to go. 

I’m trying to land my first deal in Cleveland working with a prominent, investor-focused broker. I want section 8/ C grade duplexes for cash flow to hold onto. They are all in poor shape. Cash flow is like $250/door, 20% plus cash on cash. Switched gears to B grade, better hood/ nicer conditioned properties and it drops to $80/ door, 8%. 
I want to invest in a large portfolio of multi family to buy and hold and I just don’t know what to do right now. I don’t ‘need’ the cash flow as I’m not quitting my W2, but that’s a lot of $$ to trade for better performance. And it’s month to month, at least for now- at market rent.

What  would you do? Take lower returns for the consistency and hope of better appreciation, or the cash cow that is gonna be cheaper, better returns but less stable?

I am so grateful for this community. I’m learning the lingo and what types of investments they apply to. I’m  going out of town, you’ve given me much to digest and think about! Appreciate all the feedback!

Hi Aaron! I threw 10 Cap out there as a random number. I'm just trying to understand the logic behind the numbers. I know what Cap rate is, but I'm trying to get a feeling for how experienced investors formulate their goals in a property and what they get in return. I hope that makes sense. I know there are rules like 1%, 2%, 70% ARV for flips. Should I even have a target cap date or is that incidental to the other parameters of the deal, ie purchase price, cash on cash, etc. I don't have a clear picture in my mind what a given cap rate is telling me about a property compared to another. I hope that makes sense. Thanks for your input, much appreciated.