All Forum Posts by: Adam Scheetz

@Hadar Orkibi Thanks for the response. Unfortunately, My wife and 3 kids would probably not survive living in 1/4 of a Quad lol. The reason I prompt this question is because, I'm looking at a quad right now in the Jacksonville, FL area that appears to shake out to about a 10% ROI and around $134 per door. And i'm entertaining the idea, but as you said it's vital to get the first one right. So I maybe incorrect in my thinking but the stability from 4 separate units- to me- seems to be a smart play.

I bought a primary residence Single-Family in 2010, Rented it in 2015 [sole landlord], and Just sold it in 2018 FSBO. That's the extent of my 'hands on' experience. Having said that, In pursuit of experience and growth, would it be wise to forego the traditional Single-Family Flip or Buy & Hold rental and instead go straight for the Duplex, Tri-plex, Quad, etc? Here's my thinking.

The cash flow, ROI, and potential margins from Multi-Family seems to consistently outweigh that of single family- from what I've calculated- without a great increase in investment total or difference in sale value. Mindful of the fact that I'd like a way to generate income to reinvest and grow and I don't know anything about buying and selling REO, notes, tax-liens, and all the other seemingly 'quick-turn profit niches out there , is Multi-Family smart to start with?

As always,

Thank You!

Michael Swan I actually like your answer a lot. I like the idea and also your breakdown of what I'll call 'Murphy' accounts for your rentals. It may require more up front $$$ but the trade off seems beneficial when maintenance and capX issues arise.

@Will G. Okay, so I've pretty much been utilizing the 50% rule thinking that would be conservative enough to properly set safe margins for what to ask in terms of sale price, set rent, and factoring mortgages. I think I like 8 & 8, I'd rather have extra money at the end of the month as opposed to too much month at the end of my money!

Thank you Brandon. That's what I was looking for. You mentioned finding pre-foreclosures as the best bargain. Aside from knocking on doors and asking how their mortgage payments are going, would credit unions be a viable source to cold call or show up in person and asking about non-performing borrowers or people needing "help"?

Greetings All, I'm a novice here trying to tap this fountain of knowledge so thanks for indulging. When studying up on REO, (pre) Foreclosures, notes, etc, I keep seeing the phrase "...on the Courthouse Steps." Can some elaborate or provide guidance on this. Is it proverbial, metaphorical, or can I literally go to my local Courthouse with a checkbook and have my cake and eat it too? Thank you, Adam

"If I am buyer who does not have a realtor and the seller has one (listing agent), then the seller's realtor will represent both parties. In this case, do I the buyer have a choice of not using his service?" You do not need to, nor are you obligated to use the other parties realtor. Previous replies rightly said this. Just because one party has a realtor does not make them yours. Just because one party use a realtor, does not mean they will represent you or your interests. Whoever is paying the realtor is who the realtor is responsible to. Once again, to answer your question. Unless you are paying a realtor for their service they DON'T represent you. If a buyer or seller are they themselves an agent, then cool, they can pay themselves for their service...to themselves. Again, no bearing on who's represented.

Thanks Will, much appreciated!!

Any measure of experience will teach you to plan for the Unforeseen Expense. I wonder though, for budgeting purposes, is there a prescribed percentage of net cash flow that's good to set aside for maintenance and repairs during the course of a Rental? (ie. 3%, 6%, etc)