Hey all, newish to the forums. I went to Brandon's webinar today. The topic was about working toward owning your first few rental properties and how to find good deals. Earlier this evening I've been playing around with the rental calculator. I dump in figures based on the tooltip suggestions, fill in the purchase price, etc. But I always end up with negative CoC percentages. Even when i enter lowball purchase prices.
If anyone lives in central oregon near eugene, I'm looking for suggestions on what I may be doing wrong. Brandon doesnt generally go for properties below 12% CoC on single family homes, I'm not even coming close to that (not even getting positive values).
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
5y
@Sam Hemingway, not all markets are good cash flow markets. Check out some others (maybe less metropolitan) and you'll probably find the numbers work. There are ways to make the cash flow though without doing a traditional SFH rental. What if you rented it by the room instead or house hacked it? Try different models and see what other successful investors are doing in your area - then copy them.
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
5y
@Sam Hemingway, not all markets are good cash flow markets. Check out some others (maybe less metropolitan) and you'll probably find the numbers work. There are ways to make the cash flow though without doing a traditional SFH rental. What if you rented it by the room instead or house hacked it? Try different models and see what other successful investors are doing in your area - then copy them.
Flipper/Rehabber · Eugene, OR · Member since 2018 · 14 posts · 7 votes
5y
Prices have increased in such ways that buying SFH's in central Oregon or even along the I5 corridor are hard to cash flow. Even duplex's are hard to get the 1%. Either a large down payment or rehabbing is about the only way. With rates and inventory as low as they are that people are going nuts. Smaller markets are hot right now too but have larger risk for the future. If you just want to park your money somewhere put a large down on a solid home in a good market. The bubble will burst eventually so maybe just build capital and be ready to strike when the time is right. The market for investors has only gotten worse over the past year. With the governor having no grasp on the economic consequences for the eviction and foreclosure moratorium eventually things will come to a head. I hate giving people I don't know advice but that is my two cents. Best of luck.
It is by far the best advice I've been given so far. This reinforces what I believed to be true for our area. I just wanted to make sure I wasn't insane for thinking this. Since I am new to the party I hardly know anything and I was hoping I was wrong.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
5y
SFH are through the roof in my neck of the woods. There are no shortage of city professionals looking to escape. So the old... "well I may not be cashflowing but that appreciation will be great!" landlord is SOL. Add to that that any the rents that they will get today in my market will likely decrease when people return to the cities... yes, they will.
If I had cash on hand- I would sit out my market and put my cash in the S&P or small caps.