Who's buying properties right now?

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Who's buying properties right now?

Paul DeSilvaPro Member
Investor 路 New York, NY 路 Member since 2017 路 148 posts 路 252 votes

Hey BP,

Who's currently buying rental properties?

-Are you at all worried about prolonged eviction moratoriums, rent freezes, a second wave or anything else that they are talking about in the media?

-Or are you marching forward, steadfast if the opportunity makes sense and the numbers meet your criteria?

Personally I fall into the latter but am proceeding with more caution than usual. Seems to be a lot of mixed emotions in the forums of late.

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Sean McDonnell
Real Estate Agent 路 Surf City, NC 路 Member since 2017 路 648 posts 路 597 votes
6y

I am continuing to buy properties and help others do the same. Most investors that I am working with are targeting the B-C class neighborhoods and house hack properties. I just closed on our latest house hack deal a month ago and couldn't be happier! 

I also stopped watching the news a few months ago which has helped a lot with my sanity haha

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  • Sean McDonnell
    Real Estate Agent 路 Surf City, NC 路 Member since 2017 路 648 posts 路 597 votes
    6y

    I am continuing to buy properties and help others do the same. Most investors that I am working with are targeting the B-C class neighborhoods and house hack properties. I just closed on our latest house hack deal a month ago and couldn't be happier! 

    I also stopped watching the news a few months ago which has helped a lot with my sanity haha

    49Reply
  • Luyanda Koboka
    Investor 路 Stone Mountain, GA 路 Member since 2014 路 5 posts 路 36 votes
    6y

    Dear Sean McDonnell

    I'm a newbie here so excuse my ignorance. What are house hack deals? Thanks

    33Reply
  • Greg Carrier
    Investor 路 Granger, IN 路 Member since 2015 路 195 posts 路 129 votes
    6y

    @Paul DeSilva we have bought more this year than ever before. There may be some bumps in the road ahead. But we don鈥檛 anticipate anything we can鈥檛 get through.锟硷考

    4Reply
  • Michael Myers
    Jacksonville, FL 路 Member since 2020 路 25 posts 路 11 votes
    6y
    Originally posted by @Sean McDonnell:

    I am continuing to buy properties and help others do the same. Most investors that I am working with are targeting the B-C class neighborhoods and house hack properties. I just closed on our latest house hack deal a month ago and couldn't be happier! 

    I also stopped watching the news a few months ago which has helped a lot with my sanity haha

     Wow O_O. House hack in Jacksonville huh? Thats what I was contemplating in doing. 

    2Reply
  • Paul DeSilvaPro Member
    OP
    Investor 路 New York, NY 路 Member since 2017 路 148 posts 路 252 votes
    6y

    @Sean McDonnell Awesome. So have I except for 10 minutes in the morning on the drive to work so I can hear the traffic, weather and stocks and then rught to podcasts and audiobooks. I also deleted Facebook and my personal Instagram. Kept the business Instagram.

    7Reply
  • Paul DeSilvaPro Member
    OP
    Investor 路 New York, NY 路 Member since 2017 路 148 posts 路 252 votes
    6y

    @Greg Carrier Great news! I feel the same way. If we aren't buying someone else will be! There are deals in every market. We should be closing on a 4 unit in a few weeks. (Been in contract for a while and have had a few hiccups on the sellers part.)

    4Reply
  • Paul DeSilvaPro Member
    OP
    Investor 路 New York, NY 路 Member since 2017 路 148 posts 路 252 votes
    6y

    @Luyanda Koboka House hacking is when you buy a property and rent out the bedrooms or other units and let the tenants pay the mortgage and expenses, or most of it.

    6Reply
  • Gail W.
    Investor 路 IL 路 Member since 2019 路 151 posts 路 135 votes
    6y

    I bought a foreclosure in July, however I don't think I would be comfortable buying unless the numbers are very good. We are almost done with the rehab, and I think I will be all in at about 55% of ARV. If the numbers aren't close to that I think I will stay out for awhile.

    4Reply
  • Dimitri Paspalaris
    Investor 路 Rota, Spain 路 Member since 2019 路 156 posts 路 68 votes
    6y

    @Paul DeSilva

    Closing on my second property at the end of the month. The market is booming in Jacksonville. People are still moving and renting. I bought my first one in the middle of May and had a tenant in the place within a month and had multiple people asking to move into it. Location is key and the numbers have to work. If you have any questions just shoot me a pm.

    5Reply
  • Klint Ruud
    Investor 路 Nashville, TN 路 Member since 2019 路 92 posts 路 96 votes
    6y

    @Paul DeSilva My company and investors continue to move forward. The criteria is strict. It is all about finding deeper deals, bigger margins, and heavy cash flowing properties. Those deals may be fewer and farther between... an investor may only be doing 3-5 deals this year vs the 8-10 they normally do but people are still absolutely buying homes. 

    4Reply
  • Dan Travieso
    Investor 路 Fayetteville, NC 路 Member since 2018 路 263 posts 路 216 votes
    6y

    I am still buying but the numbers must work for rental. Not doing any speculating that market appreciation will be continuing nor am I going to do any flips right now.

    5Reply
  • Paul DeSilvaPro Member
    OP
    Investor 路 New York, NY 路 Member since 2017 路 148 posts 路 252 votes
    6y

    @Klint Ruud Likewise we are moving forward. We have a four unit locked up right now that looks like it is going to turn into a cash flow beast. It's the only deal we've done this year because several have fell through, but this one was worth the wait!

    0Reply
  • Paul DeSilvaPro Member
    OP
    Investor 路 New York, NY 路 Member since 2017 路 148 posts 路 252 votes
    6y

    @Dimitri Paspalaris Congrats! Sounds like you're on a roll!

    0Reply
  • Paul DeSilvaPro Member
    OP
    Investor 路 New York, NY 路 Member since 2017 路 148 posts 路 252 votes
    6y

    @Dan Travieso Same here we are strictly buy and hold / brrrr right now. No specs and no flips at the moment. Our contractors are 6-8 months out right now because of how hot the market is right now anyway. So doing a flip would take too long or we would have to use new contractors, which we are not comfortable with at the moment. Also building materials are in extremely short supply. For example there is a 3 month lead time on P.T. lumber in my area, at the local lumber yards and the big box stores.  We just got quotes from two reputable fencing companies and they both are 4-6 months out. This is like nothing we ave seen before. 

    2Reply
  • Jean Joseph
    Rental Property Investor 路 Riviera Beach FL 路 Member since 2017 路 89 posts 路 54 votes
    6y

    @Paul DeSilva

    Whats up fellow New Yorker!

    Of course still closing on deals.

    I was able to close on two seller's financing since the peak of the pandemic.

    I have absolutely no worries. On that note, i just need my tenants to continue paying their rents. Worst case scenario, w2s can hold down my mortgages/note throughout the waves 馃檹馃徔

    3Reply
  • Paul DeSilvaPro Member
    OP
    Investor 路 New York, NY 路 Member since 2017 路 148 posts 路 252 votes
    6y

    @Jean Joseph Cheers! Same here looking at the big picture. It's a long term game plan!

    1Reply
  • Todd Pultz
    Rental Property Investor 路 Dayton, OH 路 Member since 2019 路 293 posts 路 440 votes
    6y

    @Paul DeSilva still buying in Midwest Brother! We鈥檝e done a 21 unit, 8 unit and 16 unit in last 6 months plus a few land deals we are developing. We鈥檝e always bought value add, so if the numbers worked before COVID they still work for us now. With a lot of our C class, our residents have SSI or some type of subsidy so we were affected very little.

    Best of luck to everyone!

    5Reply
  • Nate Bell
    Member since 2018 路 150 posts 路 140 votes
    6y

    @Paul DeSilva

    I just closed on two duplexes today! I like them, they cash flow, they鈥檙e occupied, so I bought them. I鈥檓 going to be VERY cautious for the next 6-12 months and likely won鈥檛 buy more, but a deal鈥檚 a deal, and if you鈥檙e in it for the long haul, it鈥檒l work out.

    5Reply
  • Sam DennyPro Member
    Rental Property Investor 路 Seattle, WA 路 Member since 2016 路 53 posts 路 23 votes
    6y

    @Paul DeSilva I'm closing on a 4 plex a hour north of Seattle on Friday.  I got presented with an off market deal that was too good to pass up.  I'm prepared not to be able to raise rents in the near term but long term has great potential post eviction memorandum.  There is always a reason to pass but you have to trust your numbers.

    6Reply
  • George MevawalaBusiness Member
    Real Estate Agent 路 Scottsdale, AZ 路 Member since 2017 路 115 posts 路 102 votes
    6y

    @Paul DeSilva I still am in the Southwest Paul! Phoenix has continued to be one of the fastest growing cities in the nation in 2020, and we are continuing to see approximately 250 people move here a day.

    I focus on value add opportunities in which I can make strategic upgrades that not only increase the rents, but also upgrades that help add instant equity into the property. We are low on inventory at the moment, but there are still deals out there!

    3Reply
  • Colin Reid
    Investor 路 St Petersburg, FL 路 Member since 2014 路 231 posts 路 221 votes
    6y

    @Sean McDonnell I cut the cord a few years back and have barely seen any news since. I'm a much happier person for it.

    @Luyanda Koboka House Hacking involves renting part of your personal residence. You may rent to roommates, or in the case of a multi-family, rent the other unit or units. I just bought a duplex and I'm hacking it by living in one unit and renting the other. The other unit covers about 2/3 of my mortgage each month, and it's reducing my cost to live in that neighborhood substantially.

    5Reply
  • Lien VuongBusiness Member
    Real Estate Agent 路 Boston, MA 路 Member since 2018 路 2k+ posts 路 1k+ votes
    6y

    I am currently still buying and budgeting higher vacancy to cover myself but proceeding with adding more buy and hold units as I see fit in the areas that meet my metrics. I prefer to have my money 'work' for me from the safe advise of Richest Man in Babylon!

    [email protected]
    The Elle Group5153 Reviews
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    5Reply
  • Andy Nathan
    Rental Property Investor 路 Chicago, IL 路 Member since 2019 路 203 posts 路 119 votes
    6y

    @Paul DeSilva we are going to buy starting next month. We had to catch up with some rehabs that took longer over the last few months. Since we are BRRRR the properties we can finally get the cash out to purchase more.

    That said, our target market has a few properties available but slowed down a bit over the last few months.

    Now that we have our house (financially and rehabwise) in order we can purchase more in the fall.

    2Reply
  • Jon KellyPro Member
    Investor 路 Bethlehem, PA 路 Member since 2016 路 929 posts 路 951 votes
    6y

    @Paul DeSilva Continuing to march forward as long as the numbers make sense. A lot of people are suggesting to hold onto cash and wait for the foreclosure wave in 6+ months. Can you do both? Look for BRRRR opportunities now. Refinance in 6 months and be ready for the foreclosure wave if/when it happens.

    I purchased two properties earlier this month (1 in Eastern Pennsylvania and 1 in Western Massachusetts), and plan to close on 2 additional properties next week. 

    My PMs have tightened their tenant screening criteria. There are still plenty of qualified tenants that are looking for places to rent. 

    2Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor 路 Kansas City, MO 路 Member since 2014 路 10k+ posts 路 5k+ votes
    6y

    We are, but with both a very hot and uncertain market, we are doing so much more cautiously.

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    2Reply
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