All Forum Posts by: Zack Thiesen

@Jordan Berry Can you send me the link to your article? Either here in comments for everyone to see or DM. I'd love to give it a read!

@Matthew Walsh I have seen some of the tax rates like that in different counties there... total insanity. Essentially the same cost as a second mortgage in some cases. Say what you will about CA but at least we pulled off Prop 13, lol

@John D. It's important to know rehab costs to a close proximity before going under contract. That would be more in the analysis phase. Now the question is not how much do you need to put in for rehab, it's how much is left over for it. I agree with @J Scott that your margins are already sounding pretty slim even without a complete picture. Good luck with the deal regardless!

@Waldo Kohl It sounds like you're wanting to find out how to scale your business and buy more buildings/units, correct? And you are interested more in cash flow and not counting on appreciation? One of the faster ways - if you've not seen it mentioned around this site - is the BRRRR method. If done right - and people can certainly make it sound easier than it is - you can buy a new building every 3-6 months or so. Again, I don't want to bore you with the details of it in case you've already seen it mentioned, but just putting it out there as a strategy that has the potential to fast-track people.

@Quincy Lockett Only 24 hours ago you said "I’ve had a remodeled 2 flat on the market slightly priced below comps for 2 1/2 months with nearly 20 tire kickers (all pre-qualified), no offers. I know that they aren’t buying elsewhere because no other multi-units are selling or under contract in the city or nearby cities no matter the condition." 

Are you saying that you've magically had 2 offers and 2 other properties go under contract in 24 hrs after not a single multi in the city or nearby cities have budged? Or are the ones that are under contract and have offers on them in another city? If so, then my statement still stands about wherever your 2 flat is. 

@Quincy Lockett Rents don't always keep pace with appreciation, especially if it's relatively rapid. And IL generally has very high property taxes. Those are just two things that make margins slim or non-existent and causes an investor to look elsewhere. If no MFR's in your town or any town nearby are moving, it's a clear sign.

MFR's are primarily investment properties. If they were viable investments, people would be buying them end of story. It's not like anything remains a secret these days, or for very long. As an asset type, they have always been less liquid for this very reason.

@Ray Smith What a deal! Sounds like it will work out really well for you with those numbers and the situation, however the property tax figure reminds me why I'm staying out of NY, lol... congrats nonetheless!

@Donald Thomas Congratulations on your deal! 

As far as online, there may be tools out there that give tenants a "portal" experience, but I just give an account number to set up deposit into and they can pay through their online banking/phone to that account if they want to. Personally I take whatever is easier for them between that and the options of cash/money order with receipt or Venmo. I know not everyone is comfortable with computers and apps so options are important. You don't want to alienate people and want to make it easy on them to get it to you. 

@Kasay Mardis If you truly suspect price point is not your problem, I would spruce the unit up a bit as the other poster mentioned but also Google real estate photographers in your area and hire one. 

Some of the best money you will ever spend. They are very affordable and worth every penny. I have one I've hired several times, costs between $150-250 and got me great angles and lighting of every space, aerial drone photo and video etc. They can even have the drone indoors and doing a tour of the whole space and help someone be able to see the layout and what it's like to walk through it. Document the space once and use it in perpetuity unless there is a significant change to the unit or building. 

I'm no marketing pro, but did you ever watch Mad Men? Remember when he says ads are based on one thing: happiness. It may sound silly to you, but people can be very visual and simple about this.. You want to help them imagine seeing themselves content and happy in the living space you're providing as much as possible. It really goes a long way to have thorough and well lit photography for this. 

Good luck and good on you for opening yourself up to suggestions and improving!