All Forum Posts by: Zach Adams

I bought my second SFR 2 months ago and today got my first check for both of my properties: $900/mon cash flow. My first has had a lot of maintenance and it's great to have a month of no issues and full CF! Here's to more Zach

2 Votes

Tyler W. In addition to the comments and suggestions about local REI volunteering and labor for hire, I'd suggest a serious financial education. There's so many suggested books around here, but Rich Dad and Richest Man in Babylon are a good start. When I started running my personal finances like a small business, things began to change pretty quickly. I've also heard Dave Ramsey's Money makeover is good too. Without a strong foundation of money management and personal finances, what good is a portfolio of properties or equities? Zach

1 Vote

Hmm completely renovated and needs $10k? Which is it?

0 Votes

Well assuming the 50% rule and all-cash, it's a 12% cash on cash return. What is the tenant class like? Doesn't sound like you can get conventional financing on this. Zach

0 Votes

Originally posted by @Jay Hinrichs:

@Spencer Sutton

agreed... I think PM as a business until you get to 2k units or better is a pretty tough go unless you up charge for everything.. or you work for small wages.

But since we are talking about Turn key... one needs to keep the marketing message in mind... Where you have turn key companies putting out the Performa's and they strive to keep those numbers in check... So when they go to a ( use your words a non low cost provider) it blows their numbers they told the folks.. and next thing you know they are getting blow back and realize they need to bring PM in house to control costs.. Since they are making 10 to 20k cash up front they can do PM basically for cost ,,, keep their clients happy because the numbers are as they advertised..

One of my long time clients up in Indy has about 1500 doors... He has never in the 15 years Ive known him used the PM company as any kind of profit center.. it makes enough to pay for staff but he keeps costs in control for the turn key buyers..

So I totally get were your coming from and I would never do PM personally without getting paid a bunch of money to do it. Way to much drama with the tenant base you deal with day in and day out...

So that is why in my mind turn key companies have PM in house..

1. Control Costs

2. ability to keep the performance in line with what they advertise.

3. Alleviate the total melt down scenario that I have seen ( especially in Detroit) IE the PM ran off with 300k of owners rents..

Damn good stuff @Jay Hinrichs

1 Vote

Welcome Ryan Prange ! I too live in North county and rent. Although I'm in the market to buy an owner occupied house, SD is one of the hottest markets in the country right now. I invest out of state and it certainly can be done. PM me for more info and check NSDREI.org for our once a month meeting here in Oceanside Best Zach

0 Votes

All Forum Posts by: Zach Adams

Zach Adams has started 24 posts and replied 161 times.

Post: First full-cash flow month for both properties

Post: First full-cash flow month for both properties

Post: First full-cash flow month for both properties

Post: First full-cash flow month for both properties

Post: First full-cash flow month for both properties

Post: WWYD? $100k student loan debt, no assets or savings, no full time job.

Post: Would you do it (Denver area)

Post: Is this a good deal

Post: Turnkey Deal Gone Bad...

Post: Invest while still renting??