All Forum Posts by: Zach Mitchell

I think I first heard this from Robert Kiyosaki but the idea is that you buy a rental property that cash flows enough to cover the car payment. So could you use the $20k for a down payment on a rental property that could cash flow $300/month and cover the car? That's a win/win all around. Did a quick google search and it was Kiyosaki. Here's a thread about it (didn't read). https://www.networthiq.com/people/KoMerican/questions/rich-dad-poor-dad-car-buying-

Originally posted by @Patrick Philip:

Originally posted by @Zach Mitchell:

Just trying to think of some areas. Try looking up in Deltona, Orange City, Sanford, etc. Just make sure you stay in the right parts of Sanford. 

 If I was brave enough to venture into Pine Hills or the bad parts of Sanford, would that benefit me? I went to school in Sanford. I'm not scared of that sh**. (During the day, anyway lol)

People definitely do rehabs in those areas and can make money but the few guys I know who did work in pine hills said they wouldn't do it again. Vandalism, theft, etc. was a big hit for one, can't remember reasoning from the other. 

Just trying to think of some areas. Try looking up in Deltona, Orange City, Sanford, etc. Just make sure you stay in the right parts of Sanford. 

@Patrick Philip Not to deter you but those are hard numbers to find here in the Orlando area. You can find stuff in lower end areas but anything in an area other than like Pine Hills is going to have a ton of offers. Also, keep in mind that pretty much every wholesaler here in town is probably sending you stuff that they got off the MLS and have now marked it up. Very few do their own direct mail or secure true off-market stuff.

I would just scroll around on zillow or realtor and get an idea of the areas you could buy around $80-$90k because you're definitely going to put about $20-$30k in. Just make sure there are comps to support an ARV of at least $150-$160k. Do you plan on doing the work yourself or hiring out? My advice would be to hire out, it's a little more expensive but unless you do construction for a living, it's just not worth the time it will take you.

Few easy ones: -Drive around and find for rent signs in immediate area. Call and ask how much they are. -Look on Craigslist for similar properties for rent -Look on Zillow -Call a couple agents who work the area and ask what they think. (They should be able to tell you in about 30 seconds if they know what they are talking about. You don't need to take much of their time at all) Lastly, price it high, put a for rent sign out and see what happens.

Abby Li I agree with Cliff and Lee above. With syndicated apartment deals you could double those returns you're expecting easily and it seems like much less work. There are a lot of guys on here who I know offer 10%+ pref, plus splits on all gains on the back-end. Personally, I'm a much bigger fan of apartments than single family for long term growth. Would you rather deal with investing $100k ten different times with all the paperwork, due diligence, insurances, etc., or just one investment with a proven syndicator? I also know of apartment developers who raise multi-million dollar funds to use for their equity on new developments. They offer 8% annual pref from the day you invest and then provide like 75% of returns to those investors when the deal is sold down the line. These guys consistently hit a 20% IRR. I think you should keep looking!!

What kind of ranch? What's the plan for income? I can't remember the specific saying but it goes something like, "Do you know how to make a little bit of money in farms? Start with a lot." The things you mentioned seem to either be a way of life or a hobby. Why not continue doing multifamily until you can buy something from the cash flow?

From what I have heard they definitely work. It's a moving bandit sign, how could it not eventually attract leads? Like mentioned above, 1 deal in 3-5 years and it should more than pay for itself. I've been meaning to look into local shops that do it but continue to forget or put off. This is a good reminder for me.

Also, developer and builder are two different pieces of the puzzle. You're still acting as developer when you hire a GC. Just like you need the architect, engineers, etc. You need a GC. Did you consider financing? No lender will even consider this construction loan without an experienced GC as part of your team.

Decide how much the timeline matters to you. Not that you can't get it done but just doing a single family flip is difficult enough as a first timer without a proper contractor on board. I've done about 14 houses and worked for a national apartment developer for 2 years before that. I'd say I'm pretty experienced, and the first thing I would be doing for a project like yours is finding the right GC.