David Hughes

Real Estate Investor
Pinemore Properties, LLC
Appleton, Wisconsin

Seeking several turn key SFHs that cash flow $135 using 50-2 rule. (3 months ago)

Username: b08092

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Real Estate Experience

I currently own and manage several single family homes and a duplex in Appleton, WI.

Real Estate Goals

My 2012 goal is to own an SFH portfolio that has a market value of $1 million, has $250k of equity, and cash flows $1500/month.

Currently Seeking

To reach my 2009 goal, I am seeking several turn key houses that meet the 50% / 2% rule and cash flow at least $135/month. I will consider any area in the US that is investor-friendly, landlord-friendly, and tax-friendly.
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Ideal house candidates are bread and butter 3/2s in landlord-friendly and tax-friendly cities that have at least average appreciation prospects (no war zones).

Cash flow is my top priority but I still need at least average appreciation potential. Each house should flow at least $135 after applying the 50% / 2% rule (NOE are 50% of rent; rent is 2% of total price + rehab costs).

The ARV equity spread should be at least 30% considering the full investment (price + rehab + closing costs).

Properties should require no or minimal rehab work; I want to avoid out-of-state rehab management complications.

Property management and contractors/handymen should be in place.

My exit strategy is to buy and hold for 5 years and then sell or lease option to a buyer.

I want to minimize out of pocket costs, so 100% seller-financed deals are #1. Deals where Seller finances 25% of the down payment are #2. Option #3 is using 20% cash out of my pocket with a bank financing the rest.

Based on months of research on the BP forums/blogs and numerous discussions with fellow BP colleagues, here is a likely profile of my future houses, but I am open to other opportunities that fit my criteria:

-Price + rehab cost: $20k - $50k (it is tough hitting the 2% rule with higher priced houses)
-Rent: $500-$1000
-Location: Charlotte, Memphis, Dallas, Birmingham, Indianapolis, Atlanta, Jackson MS
-ARV value: $50k - $100k

Although the cities above are on my radar, I will consider all good metro areas in the USA with populations over 100,000.