Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
It's been tough going lately finding a good deal but I got one under contract today. It was a fair market sale. Went to highest and best of course after one day on the market. My offer of $133k was accepted, which is higher than my other rentals but this home needs no repairs. 1960's ranch. 4 beds, 2 baths, hardwood floors, new windows, newer kitchen, 2 car garage, newer furnace, newer baths. Should rent for $1,300 to $1,400. Taxes are $658 a year.
I think one of the other offers may have been higher but I had a portfolio loan and I emphasized I would not ask for repairs and my lender has never asked for repairs on any of my properties.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
12y
@Mark Ferguson ditto! Just put number 7 under contract here in sunny SW Florida. Deals are few and far between. I am paying cash rather than financing. Putting in another contract tomorrow on another one. I think when I get about ten I will probably call it quits. I handle all the management to help cash flow. You must agree that RE is a great investment as well as fun! Playing monopoly with real money and real properties can be very rewarding.
Real Estate Investor · Kirkland, WA · Member since 2012 · 480 posts · 116 votes
12y
@Mark Ferguson , It's been hard finding good deals over here too. How does this current deal compare to the last few you've done? Your deal still looks like market price is inexpensive compared to out here and taxes in your area are 4 to 5 times lower than here. Only one day on the market, so I guess that means the price was right.
The lower priced buy and hold properties in good areas out here have increased around 40% from a year or two ago. Not at the bubble levels, but definitely making it tougher to find good deals. I think there was a pop up when interest rates and prices starting moving up. Once the media started in on recovery talk, it was off to the races. But recently it seems prices may be moderating a bit.
Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
12y
@Gerald K. The most I ever paid for a rental before was 115k, but it needed repairs. The last or I bought was 97k, but needed 15k in work. Similar rents on those.
Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
12y
@Gautam Venkatesan 20% down. My five year ARM, 30 year amortization is 5.25% right now which is 1 % higher than their normal rate because I have ten mortgages. They charge 1% origination fee.
Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
12y
thank you @Aaron Montague I'm really focussing on my direct marketing and other ways to buy properties. I'm hoping that will get me some cheaper properties
Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
12y
Great job.
What are you looking at for cash flow on this? Looks like you payment (for the 1st 5 years) will be like $591. What is your expense ratio on your places?
Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
12y
Hi @Shaun Reilly I figure about $400 in cash flow a month figuring 10% vacancy and 10% maintenance. Taxes as insurance a little more than $100 a month. Many will tell me I am low on my casts, but I have averaged that or less the last three years. It helps having extremely low vacancies in my area and SFR with low turnover and maintenance.
I have a staff of 8 that run my real estate business. They handle the management now which is pretty minimal. I don't account for that cost although I could.
I have a staff of 8 that run my real estate business. They handle the management now which is pretty minimal. I don't account for that cost although I could.
How do you afford the staff of 8 with only 8 rentals (soon to be 9)? I have 11 rentals and don't have any staff.
@Henry Nguyen
I have a staff of 8 that run my real estate business. They handle the management now which is pretty minimal. I don't account for that cost although I could.
How do you afford the staff of 8 with only 8 rentals (soon to be 9)? I have 11 rentals and don't have any staff.
Remember Mark does a lot of flips and is a RE Broker as well.
I'll guess that the staff he mentioned works in all aspects of his RE business.
Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
12y
@Dawn Anastasi Yes, that staff is for selling homes, doing BPOs and helping with fix and flips. That includes four Realtors who sell houses as well as help.