Property Manager · Santa Rosa, CA · Member since 2019 · 31 posts · 35 votes
I been runing the numbers and filtering through a ton of properties over the past few months and have yet to make an offer on anything that hasn't already had multiple offers on it and gets snatched up. I've had my realtor help me identify 2-3 zip codes that are considered B-C plus neighborhoods and continually sends me daily or weekly MLS listings but they either get weeded out because they are located next to dump properties where no one on the block has any pride of ownership or the are located next to factory or some other undesireable property. Am I being too picky or should I be looking in B- or C neighborhoods and stay focused on buying something needing tons of work in a great area? The other thing I think that I am doing is when I am running the numbers I am using California price sheets instead of local vendor cost/price sheets. I feel as though my cost figures are coming in too high thereby eliminating a lot of properties so that they don't meet my cash on cash requirement, any advice on what I should do?
Omaha, NE · Member since 2020 · 612 posts · 665 votes
6y
Are you hunting out of state?
As long as you are offering on properties, that's the biggest part, though in this market, with inventory selling above asking price and so few properties available compared to buyers, it's easier to find what you need off-market.
My business partner and I focus on Omaha. I'm local, he's in Denver where prices prohibit budget buyers. You might consider a similar option. Having a local partner opens more avenues for finding good deals. I drive for dollars, work with local REIAs, and market. My business partner runs numbers and writes offers.
Though there are risks with a partnership, I'm an advocate for working with others to speed the acquisition of properties. Best of luck to you!
Property Manager · Santa Rosa, CA · Member since 2019 · 31 posts · 35 votes
6y
Hi Jody,
Yes, I live in Santa Rosa, California and am working with a couple of agents in Jacksonville, florida and Atlanta, Georgia.
I just started the process about 3-4 months ago and have not submitted any offers yet, mainly because every time I've found something where the numbers made sense by the time my agent got out there to do a walk through and video for me the project was just too much for me to take on or already had an offer on it. I've been focusing on B-C neighborhoods and making sure location and pride of ownership in the neighborhood looks good but feel as though I am being too critical at times. I also feel as though I may be using too high of material and job costs to run my numbers because by the time I start running scenarios based on my costs my COC winds up being too low. I hoping to hookup with a contractor in Jacksonville that can give me more realistic material and cost figures to see if I can't get better numbers so I can start making reasonable offers on properties that need more work. I just feel as though I am weeding out a lot of possible properties by not having better material and cost figures..........Any thoughts on that?
Property Manager · Santa Rosa, CA · Member since 2019 · 31 posts · 35 votes
6y
@Carrick Young Medium size rehab; cosmetic at this point-carpet, paint, flooring, and fixtures. At some point would be willing to take on kitchen and bath remodel and conversion of living space into bedroom.
Rental Property Investor · San Jose, CA · Member since 2015 · 83 posts · 44 votes
6y
@Maurice Selva Got it, for my second property I took on a major rehab (kitchen, baths, roof, foundation, and a lot more) and it was quite the learning experience! I'd say start talking to and getting referrals for contractors now. This will be one of the best ways to find a contractor. Also, when you talk to them, ask the questions - how much does a basic kitchen reno cost? What if I want to add white shaker cabinets? Granite countertops?
After doing this several times you'll have a much better idea of how much things cost.