All Forum Posts by: Watson Smith

Looking good.

Did you end up buying your cabinets from the RTA store?  I bought mine from there.  That was 2 years ago and they still look brand new.  I bought the ones you assemble and used a 30% off code and free shipping.  Came out to be a good deal.  Just make sure your order some samples doors cause the colors look a little different on the computer screen.

Did you get your appliances from Best Buy?  I personally won't buy anything from that store.  I think their prices are horrible so I'd shop around.  HD or Lowes is ok.  I always price them out.  They normally run a sale so they might have one for Forth of July.  We have a place called Brand Smart USA that sells nothing but appliances.  I always grab last years models to save.  They have a "scratch and dent" section as well.  If the scratch is on the side and hidden you can negotiate a good deal.  HHGregg has a good selection as well.  Regardless, I don't think there's a whole lot of mark up on consumer appliances.  One store isn't going to be that much different from the next.  The money to be made on these is by financing or selling in large volume.

I think you picked a good house to start on.  You'll know right away if you enjoy this type of work or not.  It sounds like you'll get to learn everything about a house this way.

Only problem I see is your not going to get the best prices on your subs.  You have to establish relationships with them and that can take time.

Give us some numbers on the house.  What did you buy it for?  What do you plan on selling it for? What are comps going for in the area?  How much do you estimates repairs are going to run you? Got any pics? You could easily spend 40-50k on what you just listed.

You screen them like anyone else. Call their existing landlord, look to see if there car is nasty inside, conduct a in home interview... Credit check.. No.. They all have awful credit.

People look at section 8 renters in two different ways:

1. Government leach
2. Getting your tax dollars back

I had one section 8 lady look at a property of mine.  She rolled up in a new Lexus SUV, designer hand bag, dressed to the 9 and complained about everything in the house.  When we walked out she said "I guess it'll do".  At this point I was pissed and used a few choice words to get her back in the car off my property.  That was the day I stopped renting to section 8 tenants.

 Thanks

Your young so you can take on more risk.  

Why don't you buy the property, fix it and sell it... Make some quick cash and put that down on a rental... Or just owner finance it (with a nice down payment) and you have your first stream of income.

I don't let good deals walk away from me.  You can always find ways to make things happen if you look hard enough.  FYI a lot of people started in real-estate with a lot less than you.

Like said above.. Cash flow is king but every deal is different.  If you can make a quick buck in a hot market then do it.  Take your earnings and pour them into your first plan.

I wouldn't do a SFR deal unless is earned a CAP of 12% minimum. I'm in Atlanta, Ga and deal with lesser desired areas. I don't use a property manager either.

I'm beginning my search for a MHP and was wondering if anyone had a recommendation for a good commercial broker/agent they've used?  Looking for pocket listings.  I have plenty of connections for residential but none for commercial.  I'll continue to cold call parks and ask if their interesting in selling but I'm trying to cover all options. Looking for someone who operates in Georgia. Would consider Alabama and S. Carolina as well.

I've found most of my properties on the MLS. I've also bought some off auction.com and hubzu.com as well. My properties are close to me. All with in 40mins max. I manage and do all the maintenance on them myself. When your tenants see you come and bust your tale to fix their house they give you much more respect than if some third party was managing it. I don't have many free weekends but believe it or not I enjoy doing that type out work. I have 11 SFR and most of the tenants are like family. My average tenant stays 3-4 years. I never have to stick a "for rent" sign in a yard. I have people calling every week asking if I have any available. Mine are all lower income. Treat your tenant right and good things happen. You'll get screwed once or twice but thats life. Most renters don't have good landlords so they know its rare when they find one.

I didn't make it to the game at Clemson.  If I remember correctly I'm glad I didn't.  I make it to every home game though... And yes I remember last year :)  Football season's just around the corner and I can't wait!

I bought my first rental when I was a senior at UGA... Go Dawgs ;)

Never did the house hack but I did flip a few but found out it wasn't my thing.  I just buy, hold and rent currently.  I don't see how anyone couldn't like real-estate but you need to make sure you are up for the headaches of dealing with tenants.  One day you'll make enough money and be able to pay for someone else to deal with them but for now it will be you.

If I was 21 with 20k and still in college at Clemson I would:

1. Be on Hartwell with a cold on in my hand contemplating my future and enjoying my time

2. Stay away from the Overtime bar

3. Buy a mobile home on a piece of land. Someone else already advised this and I second it. You can find some good deals and either rent them out or use the rent-to-own model. Just like GA you have a lot of them in SC. Do a little reading on this. You could buy a old mobile home for 10-15k on a piece of land and rent it out for $500 a month. There are some disadvantages compared to SFR but the advantages far out weight them.

If SFR or multifamily is more your thing have a parent co-sign a loan with you.

Best of luck and most importantly enjoy your last year.  You have all the time in the world to make money but only a limited amount of time in college.

Pull it up... But for the love don't do what they guy said and go buy a $15 chisel from lowes. Use your buddy's demo hammer... I honestly can't believe someone said to use a freaking hammer and chisel on this to save $100...  My body still hurts from when I did that 7 years ago to a very small bathroom.  I still have nightmares about it...