Originally posted by @Joseph M. :
@Joe Colemen - What is meant with "Grind them Out" is you have to keep looking and a lot of times you have to look in areas that are not as evident that there is hidden value there. I am not talking location, I mean in the deal. Example would be you look at a SFR and see that the floor plan can support either another bedroom or could make a 1/2 bath into a full bath. That type of added value sometimes is not evident to the average buyer. A real world example: I looked at a 2-unit property with a detached 2-car garage and workshop in the rear of the property. To everyone that looked at the property, they saw a workshop and messy garage full of the owners crap. Tenants had outside parking areas. I saw almost 800 sq.ft of prime living space! After verifying with the county (always check zoning & permits by the way), I bought the place. I immediately "rehab'ed" the 2-car garage and workshop into a brand new 760sq.ft. 1B/1bath open floor plan apartment. Now I turned my 2-unit into a 3-unit with-in a few months. The cost was 1/10th the cost of buying another property of the same size. I also get the same rents as I would have if I had bought a separate property. I also have, collectively, a MUCH more valuable property. That is looking for value where other do not see value, hence the grind.
I hope that helps.
Thank you for clarifying this, all of this knowledge helps me as I'm move closer to becoming a REI. Now I've added more to my search listing.
Our offer on our first rental property was accepted the day before our state shut down and Covid took over. There were many times we thought about backing out, but we went through with the deal. It has been an uphill battle, for sure, but I don't regret moving forward. If we would have backed out, there's a good chance we still wouldn't have that first property and would have missed out on all those learning opportunities and connections along the way. It was, and still is, a risk during these times, but our "why" is big enough that we are going to make this work no matter what.