In search of insight into finding properties, willing to help!!
Rental Property Investor · MN · Member since 2020 · 22 posts · 24 votes
@Jeremy Host I'm happy to meet up and share my thoughts, sent you a DM.
Deals can be found on the MLS or OFF-market, but it depends on what you're looking for! If cash flow is the focus, interest rates are putting a lot of pressure on that right now - it's harder than it was a few months ago to find something that makes sense at face value, especially if you're a non owner occupant; this is putting pressure on sellers throughout the metro. Cash flow is often created, not purchased.... at least this is how I think about it in my head after learning first-hand. In my current duplex, I started with a goal of 250/door cash flow when I moved out, and I'll end up with nearly double that after doing some work to achieve this. The deal didn't look great when I bought it, but I had a plan to make it great after 12-18 months. I focused my energy not on how it looks now, but how to make it great later. This isn't the only way to make money in this business, but it's the way I chose because I wanted to live here, and I'm a bit handy and could do some work myself.
I often ask about goals first, and it would be helpful to know yours to provide some solid advice. If you're fishing for cash flow, are you looking to house hack or buy and hold and not live in it? If you're a little handy or willing to learn, I'd guide you to find something now that needs some work that you can improve a little over the cold season, and rent for top dollar in the spring when the rental market heats up again. I'd also tell you about different approaches to renting to achieve better returns based on what your goals were and what you were open to. Lastly, it really matters what purchasing strategy you use to buy the deal, and I would also ask if you've found a lending partner to work with who can provide advice. If not, that is easy to accomplish and there are several local lending experts I am happy to recommend who are also investors and know how to start and scale. A savvy investor-lender will help you find paths to entry that you may not have found on your own.
Hope this helps, man! Reach out anytime. I could go for hours.
Good luck on your journey, in case, if you want insight into passive investing, out-of-state investing, or equity play with new construction, let me know and I can help.
@Jeremy Host I'm happy to meet up and share my thoughts, sent you a DM.
Deals can be found on the MLS or OFF-market, but it depends on what you're looking for! If cash flow is the focus, interest rates are putting a lot of pressure on that right now - it's harder than it was a few months ago to find something that makes sense at face value, especially if you're a non owner occupant; this is putting pressure on sellers throughout the metro. Cash flow is often created, not purchased.... at least this is how I think about it in my head after learning first-hand. In my current duplex, I started with a goal of 250/door cash flow when I moved out, and I'll end up with nearly double that after doing some work to achieve this. The deal didn't look great when I bought it, but I had a plan to make it great after 12-18 months. I focused my energy not on how it looks now, but how to make it great later. This isn't the only way to make money in this business, but it's the way I chose because I wanted to live here, and I'm a bit handy and could do some work myself.
I often ask about goals first, and it would be helpful to know yours to provide some solid advice. If you're fishing for cash flow, are you looking to house hack or buy and hold and not live in it? If you're a little handy or willing to learn, I'd guide you to find something now that needs some work that you can improve a little over the cold season, and rent for top dollar in the spring when the rental market heats up again. I'd also tell you about different approaches to renting to achieve better returns based on what your goals were and what you were open to. Lastly, it really matters what purchasing strategy you use to buy the deal, and I would also ask if you've found a lending partner to work with who can provide advice. If not, that is easy to accomplish and there are several local lending experts I am happy to recommend who are also investors and know how to start and scale. A savvy investor-lender will help you find paths to entry that you may not have found on your own.
Hope this helps, man! Reach out anytime. I could go for hours.
Tell investor friendly agents in your area that you're looking for off market deals and get on their mailing lists. Wholesaler lists are good to be on as well. It sounds like you've done your homework on the underwriting side of things but it couldn't hurt to talk to some other investors to see how they are underwriting deals. I work with a lot of newer investors and frequently their numbers are not very accurate, which is to be expected. So I think you want to be careful about not being too conservative.
@Paul De Luca Thanks for that insight, I will definitely look to connect with other investors to compare numbers. I guess I just assume that my numbers are close to accurate based on the number of deals I've analyzed and research time I have spent on the subject but I could definitely be too conservative which is pushing me away from deals. I know when we were looking for fix and flips there were two properties in particular where I was way to conservative on ARV and missed out on two good deals because of it.
I direct mail owners of properties that meet my criteria.
Takes more work but it cuts out a great deal of the competition from listed properties.