All Forum Posts by: Alan Grobmeier

@Account Closed, you really need to put some pen & paper to brrr.  It sounds great, just like the pet rock when I was a kid.  But, you need to see if you are really coming out ahead.

Renovations, from my own experience, never go as planned.  They cost more in time & money than budgeted.  Stuff happens.  It just does.

Plus, if you’re buying for location, brrr might not be an option.

You might be better off going with a rent ready unit vs brrr.

My .02

@Tyler Eastman, I have chase bank & I do requests for payment.  It’s free to all parties. I never chase rent, rent chases me!

Plus you don’t want to visit ppl in person who are behind in rent.  They might shoot you!  Lots of examples.  Just google landlord shot.  ;-)

@Neal Stanfield, new & hood are not usually terms that are seen side by side.  ;-) Kind of like govt & frugal.

@Phillip Collie, that is truly a worst case scenario, other than perhaps a meth lab.

C/D class is fraught with issues that can turn off a noobie/first time investor.  I’d like to see @Account Closed have some success before he figures out that ppl lie, cheat & steal.  ;-)

Can you make money in C/D class?  Hell yes!  But it’s not for the faint of heart.  And it should not be a persons first investment!

@Phillip Collie, this is @Account Closed first investment.  I’d want a property that is as close to 100% success as possible.  Wouldn’t you?  
If he ends up with a crack den (worst case scenario), he will lose a ton of cash & may never invest in real estate again.  A safe B/A property would be best for a noobie over a C/D w coc of 10%.  You gotta walk before you run!

@Marcus McGee, when you are doing properties ANYTHING can happen.  All-States ''Mayhem' is literally everywhere.  I'm not quite like State Farm, but I have seen a 'thing or two'.  ;-)

With that said, I don't invite trouble.  But sometimes $hit happens.  And when it does it costs a lot of money.  Even the most 'hardened' property can end up with some unforeseen issue that costs ME thousands.

I dont buy in flood zones, earthquake zones, places that have hurricanes, or bad school districts.  By doing those things I feel I limit my 'downside'.    

@Martin N., glad you appreciate my humor.  I have friend/former partner of mine that deals in something just above this class you are describing.  He has a CONCEALED CARRY (we are in AZ).  He does his own evictions, has 32 doors & has done over 100 evictions in 5 years.  The judge & him are on first name basis.  ;-)

Yes, he makes money.  But it's very tuff money.  Stories, not getting paid on time, etc., is the norm.  Not the rule.

I like 'push button money'.  This is way too much like work to me.  

@Marcus McGee, my luck is if it’s in a flood plain, it will flood while I own it.  $hit happens.

I’d pass.  ;-)

@Martin N., you have made a lot of assumptions that are simply not true.  Let’s start with the easy ones:

• You will never get a mortgage for $17500.  They will charge you loan fees that will make this too expensive.  These will be cash only deals.
•     $91 a month positive cash flow is horrific.  You will go broke in less than a year.  Your minimal callout for any work is $75.  The other deal isn’t that much better, imho.  
•    17500 is NOT C+.  Not anywhere in the United States.  You won’t get rent paid & your place will turn into a crack house.
• I hope your well trusted PM is a great person.  There are no horror stories about ‘bad PM’s’.
  
• 
  Otherwise it looks like a great deal.  Sarcasm intended.  ;-)
  

Oh, forgot the main part, WWYD:  I’d laugh at whoever bought either of those crack dens to be.  ;-)

I thought all flippers were rich?  Am I missing something?