All Forum Posts by: Zach Westerfield

i put low end granite in all my rentals. My target market is middle tier rentals, and usually my places are nicer than the competition as a result. i am able to get higher rents and better quality tenants. 

Granite can be installed for $25-35 per square ft. The low end typically have a concrete looking pattern that hides stains well. its a super durable material. 

If you are more hands on, you can buy your own slab for a fraction of the price and install. 

i use credit cards as a strategy. i look first for 0% interest for as long as possible. then any points are a benefit. once the period ends, if

i use credit cards as a strategy. i look first for 0% interest for as long as possible. then any points are a benefit. once the period ends, if they wont extend it i open another. 

@Account Closed First make sure they are getting the questions. Are you responding through zillow? sometimes the emails get crossed that way. If they are...

Like you mentioned, I dont waste my time with people who can't follow instructions. I generally assume if they dont answer the questions, then they have something to hide. I greatly value my time, so I really dont like when people waste it just to see a property or because they are curious. Also, being consistent is key to maintaining fair standards as a landlord. If you require one person answer the questions before viewing, then everyone must.  

i would start by underwriting as if you were the operator, using market rates per resident. once you get down to the free cash flow number, the questions is what split should be between you and the operator? i would start with them getting 9-10% of gross income, and see how the numbers look. work with them as a partner and get to a number that works for both parties. 

@Joel McKinney congrats on getting started. I am in a similar situation, im active duty air force with 2 young kids and one on the way. The short answer is yes, you can build a successful real estate portfolio on 1-3 hours a day. For the first 3 years when i started, i worked 60-80 hours a week and traveled approx 200 days a year. i would be happy to share many of the lessons i have learned the hard way getting started in real state while working a demanding military job. 

First, i would discourage doing rehabs yourself. You could write a book on the pros and cons, but ill summarize here. with as little time as you have, your projects will stretch out forever. In today's market, most good BRRR deals require substantial rehab. The holding costs alone, as well as opportunity cost of lost rent, can easily add up to more than what you would pay contractors to do the work. One exception is if you house hack. Im on my second live in flip, and do all the work on that one myself, my other rehabs currently ongoing are completed by contractors.

Start by educating. I would recommend David Green's book on long distance real estate investing. Even if the property is down the street, you want to build a team and system that doesnt require your physical presence. Systems, systems, systems. spend you 1-3 hours learning and developing systems and the sky is the limit. 

I like the idea of doing this. Usually 2 units will rent higher than one large one. Plus, you have 2 sets of tenants, so if one leaves you still have income coming in. 

First you will need to check your local zoning to make sure its allowed. If so, evaluate the property. Can it easily be split? what about parking? it shouldnt be hard to get an estimate for the conversion. Once you do that, estimate your new rent, and analyze the numbers to see if it makes sense. 

I dont recommend it. I always have some sort of inspection contingency, usually 7-10 days. Its not just the property itself, but i also like to check out zoning, property lines etc. I have also had properties that had the square footage wrong. I use my due diligence to check out things like this as well as major issues not previously seen (septic, foundation, termites). i dont do this before an offer, because i try to make 2-5 offers a week. if i did this for every one of those, my entire day would be spend inspecting properties (i have a full time W-2 job). 

I have bought from wholesalers who do not have inspection contingencies. in this case, i get as much due diligence in up front (i usually have at least 24 hours to complete once an verbal offer is accepted). I also price in worst case into my offer. Many wholesalers dont understand this. They think we will pay top dollar for a property, no questions ask, all cash and close in a week just because its off market. If im not going to have time for proper due diligence, im going to need financial incentive to accept the risk. In this market, i dont buy many properties from wholesalers. 

That being said, i would only recommend waiving inspection contingencies IF:

1) you are very experienced, and have pretty much priced in all risk in your offer

2) you are large enough to accept the risk, meaning you either have sufficient capital to take the loss if something comes up, or you do enough volume that one bad deal will wash out. 

Either way, if you are losing out on properties because other buyers are waiving inspection 

I have talked to local banks about this, as they are usually the best to go to for a line of credit. they will do a LOC on investment properties, however the ones that i talked to wanted to be the first position lender as well if they are going to do that. Since i have fannie mae loans on my rentals, they were sold to big banks and this wasnt possible. My loan officer did say they he could do a commercial loan for property, then work out a line of credit. however with interest rates what they are, i decided just to pay the fees and refinance, and lock in 30 years of low interest rates.

i show any time after prescreening. I use a lock box, and require picture of drivers license and phone number. then i send them the lock box code, with instructions to only see it between the ours of 7 am and 7 pm, to lock up after, and to let me know when they are done. I say someone will be by afterwards to check up.