Share with Us Your Beautiful Cash Flowing Property!
Joseph MatsushimaPro Member
Investor · Los Angeles · Member since 2020 · 15 posts · 103 votesShare with Us Your Beautiful Cash Flowing Property!
Most Popular Reply
Real Estate Agent · Cleveland OH · Member since 2015 · 216 posts · 275 votes
3yI have 2 cash cows. Both were purchased right after the 2008 crash. The first came in 2009. It was a duplex in a gentrifying neighborhood Ohio City in Cleveland Ohio. The home was owned by California investors that were attempting to renovate it using a local property manager. I purchased the home for 43,000. They previous owners were unable to get an occupancy permit due to a gas leak. After my purchase I spent a couple days with plumber that identified and corrected the leaks. It has been continuously tenanted since my purchase. My vacancy rates have been so low that I upgraded units during tenant vacations. The 1890 house sitting in the middle of new townhouses selling for 300,000+ is on every investors radar. I get offers to purchase this property for 200,000 or more almost daily. The property was fully depreciated years ago and has appreciated more than 100%. Even with the below market rents that make may tenants never even consider moving my cap rate is 13%. The other property was purchase in 2014 in other gentrifying neighborhood, Tremont/Metro West for 13,000. I was able to do a to the stud renovation using 2% public financing CASH Cleveland Action to Support Housing. After major renovations, this also has been continuously tenanted. I renovated it to be used as an AIRBNB, but elected not to invest the extra time, though it's location near a major hospital with no nearby hotels would make it a hot property. My 10 year loan was paid off early and this one has a cap rate closer to 15%
57 Replies
- Investor · Los Angeles · Member since 2020 · 15 posts · 103 votes3y
Quote from @Rob Lee:
@Joseph Matsushima it's just prefilling a form for me. I'll DM you the info
Apologies the post has been updated with the correct link!
https://docs.google.com/forms/... - Member since 2022 · 4 posts · 0 votes3y
I work with a handful of investors in the Orlando area. These 8-15 bedroom properties in resort style communities near all the amusement parks are CASH COWS. My client purchased a 7 bedroom property for 474k and first year we cash flowed 65k in net rental income. Sold it 12 months later for 750k.
A lot of these larger 8-15 bedroom properties we can get at a cheaper sales price because the are built by production home builders who have relationships with trades and get material for cheaper. I have some 10% cap rate properties right now I can share with whoever is interested.
- Rental Property Investor · Philadelphia, PA · Member since 2018 · 260 posts · 145 votes3y
I have some great cashflowing MF rentals and would love to be a part of this. I filled out the form, the three I put on it are:
932 W. Marshall St. Norristown PA 19401- Gross monthly revenue $2,700. I bought this corner home for $91,000 at auction, put $9,000 into it and it appraised for $275,000. Insurance said rebuild cost is $800,000, would I like to insure it for that or market value, I went with market value, cheaper premium. I plan to convert it into a triplex once I get a vacancy, problem is, I do section 8 and demand is high, so when someone is moving out, I have a tenant before the last rent payment from previous tenant is made, its great!
321 E. Marshall St. Norristown PA 19401 - Gross monthly revenue $2,500 . Similar story here
810 W. Elm St. Norristown PA 19401 - Gross monthly revenue $2,500- This was my first rental and boy did I get lucky. It was at auction, I never saw it , but wanted to get away from flipping and into rentals, so at 15k it (5k down payment) I bid. I figure if its not worth it, I will lose 5k. I went to go see it and it ended up being a DUPLEX, which was huge because taxes are so high here that a SFH with a mortgage only cash flows $100-300, and at todays rates it would be negative, so it being a DUPLEX opened up a whole new world for me . Once I saw it appraised for $250,000 and I was all in for $87,000, it was game over, I bought as many MF as I could so long as I would be under 100k all in.
- Investor · Austin, TX · Member since 2013 · 680 posts · 1k+ votes3y
Great transactions, love to hear your stories. I too have a bunch of great ones but I don't want to make anyone jealous. However, i do want to pass on a little advice that might help everyone in the long term.
I will start out by saying go by and look at my profile. As this tidbit I am about to share relates to my profile.
Before you buy any investment, write down you goal and your WHY (especially true for real estate). If you do that it will keep you grounded if you keep referring back to it when it comes time to buy OR SELL.
What I am getting at? After reading my profile you will realize that ultimately I invested for CASH FLOW (Goal). My Why is what drives my motivation and keeps it on track and my WHY is this: TO PROVIDE PREDICTABLE, SUSTAINABLE CASH FLOW TO FUND A ROBUST RETIREMENT UNTIL I DIE.
Pensions are predictable, and sustainable. We all need them, unfortunately we don't have enough of them. Social Security is a pension. So are my 19 rentals. Each one a separate pension. If you flip a home or property you have no pension. Usually when you get a good windfall, YOU SPEND IT! We don't invest in real estate to MAKE MONEY. MONEY is not an end to it's self. It is a tool to help us in life and I use CASH FLOW to live life abundantly EVERY DAY not for just one year!
Once you have a goal and your WHY (which BTW is most important) then you can analyze which type of property might be best for your locale, and situation. I am almost strictly invest in duplexes because we have a lot of them in TEXAS and they CASH FLOW well and lastly they are less risk and easier to manage than SFHs. A four plex or apartment bldg might cash flow better but I got started with duplexes and now I feel very comfortable with the ease of management as I am 67 and this dog does not want to learn a new trick. Different type properties can work, you just need to research which is best for you. But don't try to get rich overnight with real estate, GET WEALTH over TIME! Cheers.
- Investor · Lahaina, HI · Member since 2012 · 47 posts · 35 votes3y
@Joseph Matsushima Joseph, I feel this survey wouldn't be complete without a little balance. Cash flow has become a dirty word in 2022. I have sold nearly all my US properties and am happy to discuss the rationale behind that.
In a nutshell, the real estate investor doesn't exist. We're all just investors looking for the best returns. If real estate is outperforming the S&P 500, then investors are overweight real estate. However, historically equities outperform all asset classes, so why do so many investors prefer bricks and mortar? Moreover, real estate is ranked the second most risky investment after derivatives, because it is highly leveraged. Do investors really understand risk?
If you think this might be useful, I'm happy to discuss.
- Member since 2022 · 119 posts · 52 votes3y
Quote from @Michelle Fenn:
I have 2 cash cows. Both were purchased right after the 2008 crash. The first came in 2009. It was a duplex in a gentrifying neighborhood Ohio City in Cleveland Ohio. The home was owned by California investors that were attempting to renovate it using a local property manager. I purchased the home for 43,000. They previous owners were unable to get an occupancy permit due to a gas leak. After my purchase I spent a couple days with plumber that identified and corrected the leaks. It has been continuously tenanted since my purchase. My vacancy rates have been so low that I upgraded units during tenant vacations. The 1890 house sitting in the middle of new townhouses selling for 300,000+ is on every investors radar. I get offers to purchase this property for 200,000 or more almost daily. The property was fully depreciated years ago and has appreciated more than 100%. Even with the below market rents that make may tenants never even consider moving my cap rate is 13%. The other property was purchase in 2014 in other gentrifying neighborhood, Tremont/Metro West for 13,000. I was able to do a to the stud renovation using 2% public financing CASH Cleveland Action to Support Housing. After major renovations, this also has been continuously tenanted. I renovated it to be used as an AIRBNB, but elected not to invest the extra time, though it's location near a major hospital with no nearby hotels would make it a hot property. My 10 year loan was paid off early and this one has a cap rate closer to 15%
I am so happy to see this success story. Well done :)
- Investor · Union County, NJ · Member since 2022 · 92 posts · 51 votes3y
Quote from @Douglas Gratz:
I have some great cashflowing MF rentals and would love to be a part of this. I filled out the form, the three I put on it are:
932 W. Marshall St. Norristown PA 19401- Gross monthly revenue $2,700. I bought this corner home for $91,000 at auction, put $9,000 into it and it appraised for $275,000. Insurance said rebuild cost is $800,000, would I like to insure it for that or market value, I went with market value, cheaper premium. I plan to convert it into a triplex once I get a vacancy, problem is, I do section 8 and demand is high, so when someone is moving out, I have a tenant before the last rent payment from previous tenant is made, its great!
321 E. Marshall St. Norristown PA 19401 - Gross monthly revenue $2,500 . Similar story here
810 W. Elm St. Norristown PA 19401 - Gross monthly revenue $2,500- This was my first rental and boy did I get lucky. It was at auction, I never saw it , but wanted to get away from flipping and into rentals, so at 15k it (5k down payment) I bid. I figure if its not worth it, I will lose 5k. I went to go see it and it ended up being a DUPLEX, which was huge because taxes are so high here that a SFH with a mortgage only cash flows $100-300, and at todays rates it would be negative, so it being a DUPLEX opened up a whole new world for me . Once I saw it appraised for $250,000 and I was all in for $87,000, it was game over, I bought as many MF as I could so long as I would be under 100k all in.
Would be interested to learn about your auction experiences. You've leveraged them so well.
- Member since 2020 · 37 posts · 24 votes3y
I have 9 SFH rentals cash flowing really well in Bradenton Florida, I bought the in the last 2 years, single family homes and I have one under rebab . I have 2 ADU's giving me 11 doors. Just quit my good paying job in July in order to grow my business .
- Real Estate Broker · IN · Member since 2017 · 70 posts · 12 votes3y
I can show my investment property that I sold in Indiana and one I acquired in South Bend. My investor clients have acquired a 4 unit, 4 unit , 6 unit and looking to acquire more investment properties in Northwest Indiana, South Bend and other areas!
- Fishers, IN · Member since 2017 · 126 posts · 20 votes3y
We own about 60 units here in Indianapolis, Including a small 10 unit multifamily property. We would love to work with you guys and provide some value
- Rental Property Investor · Philadelphia, PA · Member since 2018 · 260 posts · 145 votes3y
Quote from @Eric Prescott:
Quote from @Douglas Gratz:
I have some great cashflowing MF rentals and would love to be a part of this. I filled out the form, the three I put on it are:
932 W. Marshall St. Norristown PA 19401- Gross monthly revenue $2,700. I bought this corner home for $91,000 at auction, put $9,000 into it and it appraised for $275,000. Insurance said rebuild cost is $800,000, would I like to insure it for that or market value, I went with market value, cheaper premium. I plan to convert it into a triplex once I get a vacancy, problem is, I do section 8 and demand is high, so when someone is moving out, I have a tenant before the last rent payment from previous tenant is made, its great!
321 E. Marshall St. Norristown PA 19401 - Gross monthly revenue $2,500 . Similar story here
810 W. Elm St. Norristown PA 19401 - Gross monthly revenue $2,500- This was my first rental and boy did I get lucky. It was at auction, I never saw it , but wanted to get away from flipping and into rentals, so at 15k it (5k down payment) I bid. I figure if its not worth it, I will lose 5k. I went to go see it and it ended up being a DUPLEX, which was huge because taxes are so high here that a SFH with a mortgage only cash flows $100-300, and at todays rates it would be negative, so it being a DUPLEX opened up a whole new world for me . Once I saw it appraised for $250,000 and I was all in for $87,000, it was game over, I bought as many MF as I could so long as I would be under 100k all in.
Would be interested to learn about your auction experiences. You've leveraged them so well.
Well its no longer the case, but at the time auctions were in person, so I just did some good research and would ask the current tenants if I could look around, and with that, I would have a good idea of how much I would need to fix it up and such was able to outbid others. If the homes are vacant, I peak through windows, use my drone to see all around the homes, and that would give me a leg up when it came to how high I was willing to bid. Its all about figuring out how much it will cost to rehab, if you have a good idea you can bid higher than the guy next to you who did not do such good research and was topped out because he assumed the 100k full gut cost. 100k is what i assume I will need to fix a house if I don't see it and I bid going in that I will need 100k to fix it, if the numbers work, ill go for it.
Overall it comes down to knowing your costs pre-auction so you can bid higher. After my first refi ever, on my first duplex, I knew what they will appraise for and as such I knew so long I was all in under 175k I was good , anything under was a bonus, and I , except for 2 of my duplex's ever was over 100k for rehab and acquisition
- 3yJaylan ArcherBusiness MemberReal Estate Agent · Portsmouth, NH · Member since 2014 · 150 posts · 65 votes
My wife and I built our first STR 'tiny-ish' home during the boom of Covid. It was a great learning process being the general contractor on something we thought was going to be affordable to build and quick to do. A few things were out of our control but we quickly found that just because it is a compact footprint, doesn't necessarily mean it will be that much cheaper to build. We now have a 600 square foot, two bedroom short term rental that allowed our design and creative minds to enjoy every minute of it. We are actively looking to do another in Southern Maine and New Hampshire.
Archer and Associates of KW Coastal589 Reviews - Rental Property Investor · Member since 2019 · 67 posts · 29 votes3y
I purchased a two unit for 105k in January of 2020. It's valued somewhere around 190K today. I don't plan on selling...ever. My PITI is less than $600, but I collect $2,250.00 in rent (gross). I also have a SFR paid $65k (previous owner was a hoarder...spent 15K getting it cleaned out and renovated) the PITI is $302... I rent it for $1,650. It's current value is about 120k.
- Rental Property Investor · Member since 2019 · 67 posts · 29 votes3y
Quote from @Douglas Gratz:
Quote from @Eric Prescott:
Quote from @Douglas Gratz:
I have some great cashflowing MF rentals and would love to be a part of this. I filled out the form, the three I put on it are:
932 W. Marshall St. Norristown PA 19401- Gross monthly revenue $2,700. I bought this corner home for $91,000 at auction, put $9,000 into it and it appraised for $275,000. Insurance said rebuild cost is $800,000, would I like to insure it for that or market value, I went with market value, cheaper premium. I plan to convert it into a triplex once I get a vacancy, problem is, I do section 8 and demand is high, so when someone is moving out, I have a tenant before the last rent payment from previous tenant is made, its great!
321 E. Marshall St. Norristown PA 19401 - Gross monthly revenue $2,500 . Similar story here
810 W. Elm St. Norristown PA 19401 - Gross monthly revenue $2,500- This was my first rental and boy did I get lucky. It was at auction, I never saw it , but wanted to get away from flipping and into rentals, so at 15k it (5k down payment) I bid. I figure if its not worth it, I will lose 5k. I went to go see it and it ended up being a DUPLEX, which was huge because taxes are so high here that a SFH with a mortgage only cash flows $100-300, and at todays rates it would be negative, so it being a DUPLEX opened up a whole new world for me . Once I saw it appraised for $250,000 and I was all in for $87,000, it was game over, I bought as many MF as I could so long as I would be under 100k all in.
Would be interested to learn about your auction experiences. You've leveraged them so well.
Well its no longer the case, but at the time auctions were in person, so I just did some good research and would ask the current tenants if I could look around, and with that, I would have a good idea of how much I would need to fix it up and such was able to outbid others. If the homes are vacant, I peak through windows, use my drone to see all around the homes, and that would give me a leg up when it came to how high I was willing to bid. Its all about figuring out how much it will cost to rehab, if you have a good idea you can bid higher than the guy next to you who did not do such good research and was topped out because he assumed the 100k full gut cost. 100k is what i assume I will need to fix a house if I don't see it and I bid going in that I will need 100k to fix it, if the numbers work, ill go for it.
Overall it comes down to knowing your costs pre-auction so you can bid higher. After my first refi ever, on my first duplex, I knew what they will appraise for and as such I knew so long I was all in under 175k I was good , anything under was a bonus, and I , except for 2 of my duplex's ever was over 100k for rehab and acquisition
HOT DIGGITY! I'm about to participate in my first auction in Berks County, PA! I just learned so much from your post. I ran title searches on all of the properties and did drive-bys. I've targeted 3 properties in specific.
I have a question. Are you still participating in the auctions? Have you ever had a problem removing owners and/or tenants? Lastly, do you determine the amount your willing to spend based on the current market value? (Let's say the market value is estimated to be 100K, do you limit your bidding to 50% of that or to 70% of that...)
- Brooklyn, NY · Member since 2016 · 66 posts · 69 votes3y
@Nick Tarantino. Hi Nick, are you a real estate agent in Orlando?
- Investor · Louisville, KY · Member since 2019 · 50 posts · 21 votes3yI'd love to be a part of this if you're okay doing it on STRs.
Quote from @Joseph Matsushima:
Hello Investors! Is anyone interested in showing our their cash flowing properties to the BP Community? Our BiggerPockets YouTube team is going to be filming tours of cash flowing properties with real estate investors (Think ‘Deal Deep Dive’ but on camera) in 2023 and we want to feature YOU and YOUR property.
This is a great opportunity to get your name out there to the real estate community and potentially earn a guest spot on one of our podcasts! If you’re interested — or know someone who would be interested, please fill out this form and we’ll reach out to you for next steps!!
https://docs.google.com/forms/... Here is a deal deep dive that I wanted to share: Price is $580,000 NN property
The property is a a former bank building that is now a Vet office. Cap rate is about a 7%. The deal was financed with $280K in cash and the rest using a home equity line of credit.
Why do I like the deal? It's a national tenant on a busy road with a building that already has a drive thru. Should be easy to rent and you can't build a building like this for the price tag. I like that it's passive!
Is there any value add? Not much, but that's okay as I am a cash flow investor. Rent increases are 2.5% a year. I suspect if the tenant leaves after 8 years I could bump the rents by 25%
Why did you use all Cash? I wanted to let the seller know I was a serious buyer, and they wanted to close fast. My bankers were getting a little skittish with the rise in rates and my heloc was a lower rate anyway. There was some competition for the property as well.
What are the negatives? I am responsible for the HVAC and Roof. However the roof is in good condition and the HVAC is new.
So how much do you make? Net is $2,200 a month
So what is the plan for this property? Now that the deal is secured I have some options to consider. 1) Do a cash out refi and reinvest the money. I will most likely pay off the equity line with this money in the interim until I find another property. 2) Enjoy the cash flow and sit tight. 3) Syndicate the deal as a form of cashing out.
Who is the hero in the deal? My HELOC is the hero. Having access to capital quickly when I need it has served me well.
What was the hardest part? Proving to the insurance company the age of the roof. I had to hire someone to inspect the roof.
What was a surprise? The Broker is interested in doing a deal with me in the future. You never know who you will meet that can change the direction of your life.
Hope this gives you perspective on my world. Keep on Investing!
- 3yTyler LingleBusiness MemberReal Estate Consultant · Indianapolis, IN · Member since 2021 · 440 posts · 292 votes
Quote from @Omari Heflin:
We own about 60 units here in Indianapolis, Including a small 10 unit multifamily property. We would love to work with you guys and provide some value
Where in Indianapolis do you focus on?
Roots Realty Co. 564 Reviews - Investor · Jacksonville, FL · Member since 2019 · 135 posts · 106 votes3y
Earlier this year closed on a 3/2 new construction single family home for $138,900 with a 25% down payment of $34,725 and $2,200 in closing costs at 3.25% interest rate. The price was locked in since early 2021 with builder.
The property is currently rented at $1,650 And has a mortgage of $575 a month.
It provides $1000+ a month in cash flow and 35%+ annual cash on cash not including depreciation or principal pay dow
Today they are selling $220,000+
- Investor · Austin, TX · Member since 2013 · 680 posts · 1k+ votes3y
Quote from @Victor Saumarez:
@Joseph Matsushima Joseph, I feel this survey wouldn't be complete without a little balance. Cash flow has become a dirty word in 2022. I have sold nearly all my US properties and am happy to discuss the rationale behind that.
In a nutshell, the real estate investor doesn't exist. We're all just investors looking for the best returns. If real estate is outperforming the S&P 500, then investors are overweight real estate. However, historically equities outperform all asset classes, so why do so many investors prefer bricks and mortar? Moreover, real estate is ranked the second most risky investment after derivatives, because it is highly leveraged. Do investors really understand risk?
If you think this might be useful, I'm happy to discuss.
Hi Victor, I always like a good debate if you will. I have read many of your responses on BP and I too think a lot like you. However, I do think Cash Flow is King and I also think real estate can outpace the S&P, year in and year out, 3-5-10 year periods, whatever you like!
I take exception to the real estate investor doesn’t exist. Many of us, including myself would call us real estate investors. I do have other investments including stocks, bonds, ETFs, mutual funds, and the likes. Not that I am the go-to expert, but I do have a wide range of experience in the different asset class to include Alternatives. I also have a vast range of work experience to include 20 years as a Military Officer in the USAF, followed by 20 years as Financial Advisor (18 of those years as an independent advisor). Along the way, the last 19 years, I have invested in small multi-family investment real estate (duplexes). I only give this background to give some credibility to my words going forward.
For the past 15 years or so I have primarily invested in Real Estate over other asset classes. I know you’re going to pull the historical S&P numbers to the other asset classes and say there is my point proven. But are we limiting ourselves to those large asset bases then you might have a point. It is hard to break out what types of real estate your numbers compare.
Is there an index that factors in what a portfolio of small duplexes bought in Texas over the last 20 years using the 1% rule (among other criteria) that resulted in an initial monthly positive cash flow of $400-$500 on property that had approximately $30-35k outlays and the excess cash flow was used to pay down the notes so that the portfolio mortgages were paid off in about 15 years. So, to put in other way, is there an index that reflects a portfolio of duplexes that sold for 140k each but the total outlay of the investor was 30-35k per duplex and the ABSOLUTE rest of the expenses were borne by tenants with the excess used to pay the ENTIRE mortgage within 15 years.
You mentioned the S&P and how it outperforms (over the last 20 years 8.2% annualized), but failed to mention the average investor only realized 2.1%. Let me provide a reference: https://www.crewsbankcorp.com/blog/sp-500-vs-average-investor#:~:text=S%26P%20500%20vs.%20Average%20Investor%20Today%27s%20chart%20comes,is%20down%20and%2For%20try%20to%20time%20the%20market.
I always like talking about risk with any investment and somehow you do too! However, I again take exception to your real estate is the 2nd riskest asset class. Now again you might be right if we have to limit it some broad based all inclusive real estate index. But you do realize we are on BP talking about CASH FLOW deals on INDIVDUAL PROPERTIES. You know those BRICK AND MORTAR things that you can actually go and touch and say yes here it is! Not like some GM stock or United Airlines that went bankrupt but didn’t. You know that car company that didn’t shut down or airline that kept operations going but told you that the stock you hold is NO GOOD but our new issues are FINE as new wine. LOL.
Tell me where my risk is in small multi-family properties like duplexes. If they cash flow POSITIVE day one, they probably are really cash flow positive 10 years later. I have yet to decrease rents since I started buying duplexes in 2003. My average rents back then were about $700 a hole and now about $1400 a hole. I was making money with a mortgage at $700, what am I doing with NO MORTGATE at $700 a hole.
I will put my portfolio of duplexes acquired between 2003 thur 2019 against the S&P during that time and would bet my duplex returns would double the S&P with far less risk. Please tell me where my risk lies. Yes there is NO INVESTMENT without risk but pro-active investors on BP seek and acquire the skills to navigate that risk with ease.
Now don’t get me wrong, this real estate investing isn’t for everyone. THANK GOD. If everyone did it, would it really work…….hell no we wouldn’t have those guys called renters!!!! Yes this is well kept secret that the BP community has capitalized on…….but don’t tell everyone, I like your ruse in telling the other side is better……..let’s keep this our secret, keep the S&P story alive, we can’t sustain it ourselves if we have no renters! Cheers.
- Member since 2021 · 1 post · 0 votes3y
I bought a single family home in Muskoka (estate sale) at the end of 2021 for 500k. Renovated and flipped to self as a Duplex. Rented out and cashflows 750. Reappraised at 840k this month. Room to build a third unit under Bill 23.
- Rental Property Investor · Philadelphia, PA · Member since 2018 · 260 posts · 145 votes3y
Quote from @Lauren Ruppert:
Quote from @Douglas Gratz:
Quote from @Eric Prescott:
Quote from @Douglas Gratz:
I have some great cashflowing MF rentals and would love to be a part of this. I filled out the form, the three I put on it are:
932 W. Marshall St. Norristown PA 19401- Gross monthly revenue $2,700. I bought this corner home for $91,000 at auction, put $9,000 into it and it appraised for $275,000. Insurance said rebuild cost is $800,000, would I like to insure it for that or market value, I went with market value, cheaper premium. I plan to convert it into a triplex once I get a vacancy, problem is, I do section 8 and demand is high, so when someone is moving out, I have a tenant before the last rent payment from previous tenant is made, its great!
321 E. Marshall St. Norristown PA 19401 - Gross monthly revenue $2,500 . Similar story here
810 W. Elm St. Norristown PA 19401 - Gross monthly revenue $2,500- This was my first rental and boy did I get lucky. It was at auction, I never saw it , but wanted to get away from flipping and into rentals, so at 15k it (5k down payment) I bid. I figure if its not worth it, I will lose 5k. I went to go see it and it ended up being a DUPLEX, which was huge because taxes are so high here that a SFH with a mortgage only cash flows $100-300, and at todays rates it would be negative, so it being a DUPLEX opened up a whole new world for me . Once I saw it appraised for $250,000 and I was all in for $87,000, it was game over, I bought as many MF as I could so long as I would be under 100k all in.
Would be interested to learn about your auction experiences. You've leveraged them so well.
Well its no longer the case, but at the time auctions were in person, so I just did some good research and would ask the current tenants if I could look around, and with that, I would have a good idea of how much I would need to fix it up and such was able to outbid others. If the homes are vacant, I peak through windows, use my drone to see all around the homes, and that would give me a leg up when it came to how high I was willing to bid. Its all about figuring out how much it will cost to rehab, if you have a good idea you can bid higher than the guy next to you who did not do such good research and was topped out because he assumed the 100k full gut cost. 100k is what i assume I will need to fix a house if I don't see it and I bid going in that I will need 100k to fix it, if the numbers work, ill go for it.
Overall it comes down to knowing your costs pre-auction so you can bid higher. After my first refi ever, on my first duplex, I knew what they will appraise for and as such I knew so long I was all in under 175k I was good , anything under was a bonus, and I , except for 2 of my duplex's ever was over 100k for rehab and acquisition
HOT DIGGITY! I'm about to participate in my first auction in Berks County, PA! I just learned so much from your post. I ran title searches on all of the properties and did drive-bys. I've targeted 3 properties in specific.
I have a question. Are you still participating in the auctions? Have you ever had a problem removing owners and/or tenants? Lastly, do you determine the amount your willing to spend based on the current market value? (Let's say the market value is estimated to be 100K, do you limit your bidding to 50% of that or to 70% of that...)
I have had the problem twice. 1st I just try to give them cash for the keys...if that does not work I put the water and electric in my name and keep it off, and lastly at the same time if they did not except cash for keys I explain the eviction process and how if you have an eviction on your record (whether this is true or not) I tell them landlords have a website that shows with a search people who have been evicted, so its in your "theirs" best interest to do this as smoothly as possible for the both of us. If they want to keep renting m you tell them the rate and have them sign a lease with 1st, the last rent, and security deposit....no I do not use the market value in that sense, I use it to know what it will be worth after I fix it....I mean that is one way you can figure out your bid. The more properties you are ready to bid on the better, because most of the time, 75% and up get postponed......I have not done an auction since they moved online, its HORRIBLE. All your research means a lot less when the person behind the computer has 4 hours to do research before placing their bid where as in person is was 123 sold!
- Member since 2022 · 1 post · 0 votes3y
Quote from @Joseph Matsushima:
Hello Investors! Is anyone interested in showing our their cash flowing properties to the BP Community? Our BiggerPockets YouTube team is going to be filming tours of cash flowing properties with real estate investors (Think ‘Deal Deep Dive’ but on camera) in 2023 and we want to feature YOU and YOUR property.
This is a great opportunity to get your name out there to the real estate community and potentially earn a guest spot on one of our podcasts! If you’re interested — or know someone who would be interested, please fill out this form and we’ll reach out to you for next steps!!
https://docs.google.com/forms/...Can't wait to send you over our top 3. Just grabbing that info from our Dispo dept! Thanks for the chance to showcase our best deals of the year, looking forward to hearing how well everyone else did in 2022!
- Rental Property Investor · North and Central Texas · Member since 2020 · 12 posts · 26 votes3y
I (we) have a great property (4 plex) to show case what a BRRR can look like for a beginning investor. The LLC was just created I had the solo proprietor experience to guide the LLC with two other owners. We purchased the home at 270k, it was in disrepair for 10-20 years.
- All the small stuff was way past its repair time and what was repaired was done very poorly.
- Rat infested, A literal health hazard. Found 5 nests
- No updates since 1970's when it was built.
- Major mold, and multiple water leaks. Including a tub crack that was slow leaking into 3 of the unit's lower floors.
- Lights flickering with hot grounds, and about 90% of the outlets and switches unsafe to use due to physical damage.
- Original siding (fiberboard) not maintained and allowing pest's to (rats and squirrels) egress in and out of the units.
- Caved in celling with open access to attic, from roof leak that went unfixed for 3 years.
Most repairs were sweat equity. Now the home is worth 350k. Units were renting out at $500 before purchase with extremely high turnover; now they rent for $850-100 (depending on yard and upgrades done).
Cash flow is double the expenses, giving us a 50% ROI in the first year.
- 3yZachary StanleyBusiness MemberReal Estate Agent · Bentonville, AR · Member since 2021 · 17 posts · 23 votes
Bought a home a year and a half ago as a primary resident. Wife and I moved out after a year and now we cash flow $800 a month on our single family.
Mortgage is $1400 and we rent it for $2200 here is Rogers, Arkansas.
Bout home for 275k with a 3.75% interest rate and only 5% down.
I updated lights and fixtures around the home along with added a hot tub which all renters usually LOVE.Im helping a lot of people invest in this Northwest Arkansas are so hit me up if you would like to invest in one of the quickest growing areas in the country.
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